Independent financial planning groups are running the master trust outsourcing tenders for ever bigger corporate super funds (with assets approaching $30 million), according to Robert Bergin, ASGARD’s national manager of business superannuation.
He says the tender market for larger outsourcing deals has historically been dominated by the accounting houses and a few specialist tender consultants, but after the contract has been awarded these players tend to step away, leaving the client to manage the service relationship.
But corporate funds with assets of $10 to $30 million are often looking for a more holistic relationship, leaving a gap for dealers willing to manage the service relationship after the tender, and remain involved by offering member education and financial planning.
Bergin says planning groups have always been running tenders, but on a much smaller level.
“They have cut their teeth on the smaller ones and are now moving up-market … As their infrastructure grows, they are growing their ability to take larger clients on board.”
These groups often run the tender for free and get a trail commission, as well as a fee for providing advice and education.
