One of the country's largest industry funds and one of its smaller funds have both received Australian Prudential Regulation Authority (APRA) approval to offer a MySuper option come 1 July.
REST Industry Super's announced it had received approval yesterday. Chief executive, Damien Hill said its MySuper product had already been very similar to what was required by the legislation.
Although it would have similar characteristics to others as prescribed by legislation, the MySuper differentiator for industry funds was in their ability to provide for the needs of a specific demographic, according to Hill.
"By design, industry funds like REST are best placed to meet the needs of their demographic," he said.
The fund said approval of its default investment option would allow more than 150,000 employers, already signed to REST, to meet their obligations to contribute to a MySuper offering come 1 July this year.
REST Super is one of the largest industry funds by membership with 1.9 million members and approximately $25 billion in funds under management.
First Super has also been authorised to offer a MySuper product when the legislation is introduced.
The approval showed claims that smaller funds would struggle with the new reforms were baseless, according to First Super co-chair Michael O'Connor.
"First Super has shown once again that small funds are just as capable as larger ones of meeting enhanced compliance requirements in a short timeframe," he said.
First Super said it already had lower fees than many of the bigger funds on standard comparative measures.
"Despite the myth of economies of scale, First Super will remain one of the lowest cost funds while delivering good service to members," First Super Co-Chair Allan Stewart added.
First Super has 72,000 members in the timber, pulp and paper and furniture and joinery industries, and $1.8 billion in funds under management.
