The Association of Superannuation Funds of Australia (ASFA) has signalled that it will be seeking further discussions with the Australian Prudential Regulation Authority(APRA) to ensure adequate transitional arrangements are put in place with respect to trustee licensing.
Asked for her views on the year ahead, ASFA chief executive pointed to trustee licensing as being a key issue, particularly for those funds struggling to obtain their licences.
“APRA has indicated that there could be up to 350 licensed funds at the end of the day,” said Smith. “But there will still be a lot remaining. July will give us a good wash up, but it won’t be the end of the story.
“Post-July 2006, there could well be funds that have attempted to reform to licensing requirements but haven’t quite made it,” she said. “There needs to be contingencies in place and we will be talking to APRA about that in the coming months.”
Smith predicted that much of the movement that had been witnessed in 2005 would continue at least into the first half of this calendar year.
“As choice is more fully absorbed, many super funds will be bedding down changes implemented in technology and communications before looking further towards enhancement,” she said.
