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MySuper will accelerate fund consolidation
The introduction of MySuper will lead to an acceleration of the current pace of consolidation of superannuation funds, according to the Association of Superannuation Funds of Australia (ASFA).
In a submission filed as part of the Productivity Commission's review of default funds under modern awards, ASFA said the introduction of Australian Prudential Regulation Authority (APRA) licensing of superannuation fund trustees and entities had already led to a very substantial reduction in the number of superannuation funds, particularly smaller corporate funds.
The submission said there were currently under 300 trustee entities and around 360 different superannuation funds, excluding SMSFs .
It said around 230 of these funds had assets in excess of $50 million, around 110 with more than $1 billion and 35 with more than $5 billion.
The ASFA submission said there had been a marked increase in the proportion of assets and members in funds with over $1 billion in assets, with the supervisory levy and other figures indicating that the top 100 funds accounted for the bulk of the assets in the APRA-supervised sector.
The submission said this would be reinforced by the introduction of MySuper.
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