The outline for the proposed MySuper legislation may be reasonably clear for superannuation funds, but without more detail, many are still unsure about the best way to approach the new concept.
Superannuation providers will have up until 1 July, 2013 to come up with a solution to the new regulations for default funds.
In the meantime, many providers have already come up with offerings they think could pass as a MySuper option, but none can be certain about whether these will make the grade.
The majority of super providers questioned have indicated they will rely on products already in the market, but will wait for further instruction from the Government to see if they require fine-tuning.
AMP is among the group that will likely rely on a current product to meet the expectations of MySuper.
This time last year, AMP chief executive Craig Dunn said his company was well positioned to meet the new default fund requirements of MySuper with its recently launched AMP Flexible Super Core product.
A spokesperson for AMP said the company still maintains the entry-level product would sit within the MySuper framework, but obviously there was still more detail to come.
“We are definitely looking to offer something, but at this moment in time it is hard to say whether we would tweak an existing product or offer a new one,” the spokesperson said.
Both Colonial First State (CFS) and BT Financial Group already have products in the market that would appear to meet the known requirements.
CFS recently made changes to its FirstChoice Wholesale platform that resulted in it offering lower fees than industry superannuation funds.
BT Financial Group also has its low-cost solution, BT Super for Life, which chief executive Brad Cooper said would be an ideal MySuper product.
Industry-fund behemoth AustralianSuper said it would be unlikely to look at offering a new product, but would instead rely on its ‘balanced’ option, stating it represented the best ideas for its members.
Plum Super managing director Scott Hartley said although the MLC-owned firm was well positioned to deal with MySuper when it is introduced, it would not be acting on specific product changes until the details were clear.
Only OnePath and Bendigo Wealth have indicated they will look at offering a new product in response to MySuper, with OnePath remaining quiet on the details.
A spokesperson for Bendigo Wealth said the company’s plans for a MySuper offering were well advanced, and that it would be adding superannuation to its low-cost Trinity3 platform in the third quarter.
