POWERED BY MOMENTUM MEDIA
Mergers should be seamless: Asset Super
The superannuation industry needs to work on making mergers seamless in the light of a continuing trend towards consolidation, according to Asset Super chief executive John Paul.
Paul said Asset had encountered difficulties in its merger with CareSuper as Asset members' third party authorisations and binding death benefit nominations would lapse once the merger was finalised.
He said Asset had made its case to the Association of Superannuation Funds of Australia (ASFA), which was lobbying government to resolve the issue going forward.
"There's going to be others following us. Although it may not get to the light of day for us, it might help others who follow behind us," Paul said.
He said Asset was in the process of contacting members to advise they will need to fill out the paperwork again.
"We would have liked to say 'there's no paperwork required, you're just going to be transferred and we'll take care of all the back office administration such that we'll transfer your insurance' and everything would go across seamlessly - that's the perfect result we would have preferred," Paul said.
Currently, third party authorisations and death benefit nominations are legal agreements with the superannuation fund trustee, and once the trustee is gone the agreements are void.
Third party authorisations affect financial advisers that have been authorised to act on a member's behalf and also the parents and the carers of some members.
ASFA has been consulting with Treasury on a number of issues in respect to super fund mergers.
AUTHOR
Staff Writer
Money Management staff writers are writers who contribute to the website from time to time. If you would like to discuss the content contained within this article please contact us.
Recommended for you
A member body representing some prominent wealth managers is concerned super funds’ dominance is sidelining small companies in capital markets.
Earlier this month, several Australian superannuation funds fell victim to credential stuffing attacks, which saw a small number of members lose more than $500,000.
Small- to medium-sized funds have become collateral damage in an "imperfect" model for super industry levies, a financial institution has said.
Big business has joined the chorus of opposition against the proposed Division 296 tax.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
90.28 3 y p.a(%)
2
GAM LSA Private Shares AU I
37.08 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.44 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.12 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
28.28 3 y p.a(%)
