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Industry rises to consolidation challenges
A superannuation fund chief executive has questioned the need for one of the key recommendations of the Cooper Review - the further consolidation of superannuation funds.
The chief executive of legalsuper, Andrew Proebstl told an Australian Institute of Superannuation Trustees (AIST) conference that significant consolidation had already occurred without the need for Government interference.
He said there had been a 90 per cent reduction in the number of super funds in Australia over the last 15 years.
Proebstl also pointed to a 50 per cent reduction having occurred in just the past five years.
"So market forces have been successful in achieving consolidation," he said. "The industry has already risen to the challenges."
Proebstl also questioned the value of fund mergers in terms of lowering overall costs.
He said data had revealed little difference between the member expense ratio of mega funds and medium sized funds.
Proebstl added there was plenty of evidence that medium sized funds were better focused and capable of delivering what their members want.
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