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Adequacy of member servicing the key question
The economics of adequately servicing members should be the paramount issue for superannuation funds contemplating mergers, according to a new survey undertaken by Super Review.
The survey, undertaken during last month’s Association of Superannuation Funds of Australia (ASFA) national conference in Adelaide found that contrary to some of the signals being sent by the Australian Prudential Regulation Authority (APRA) superannuation fund trustees and executives see member servicing as the key issue.
Asked what they believed was the most significant factor that should influence directors of a fund to merge, 71.4 per cent cited operating costs per member, compared to 28.5 per cent of respondents who cited a decline in member numbers, and 14.2 per cent who cited funds under management.
No respondents regarded low average balances or scrutiny by APRA as being an issues worth of prompting examination of merger options.
The survey findings come at the same time as the APRA has released a package of new prudential requirements aimed at underpinning member outcomes and consistent with the Government’s yet to be passed Treasury Laws Amendment (Improving Accountability and Member Outcomes in Superannuation Measures) bill.
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If we are to be believe that the Future Fund is the way of the future, it appears member servicing is supposed to happen for free.