POWERED BY MOMENTUM MEDIA
Super fund signs with SuperStream rollover gateway
Challenger has signed on to Westpac Institutional Bank's QuickSuper, a SuperStream rollover gateway.
It said its Challenger Retirement Fund was the first super fund in Australia to make a gateway arrangement to comply with SuperStream reforms.
The move comes five months ahead of the Government's 1 July deadline for super fund trustees to adopt new data and e-commerce standards before a six-month transition period begins.
Challenger general manager operations David Mackaway said utilising a rollover gateway would cut down time between fund transfers and keep members' funds fully invested for longer.
"In addition to facilitating member choice and helping consolidate multiple super accounts, the move to electronic transfers from paper-based processing will be simpler, faster and more efficient," he said.
Switching from manual processing to electronic processing is expected to reduce the cost of processing transactions from between $5-10 to between 5-15 cents, according to Treasury, which said the superannuation industry processes more than 100 million transactions annually.
"Not only will auto-processing save time, it will improve transparency through payment tracking, payment auditing, access to clients' online transaction history and customer support," Mackaway said.
While there was no requirement to work through a gateway, according to the Australian Taxation Office (ATO), trustees needed to justify the costs and inconvenience of managing service requirements internally, and the complexity of managing e-commerce exchanges with thousands of potential service end-points.
The decision to procure a gateway arrangement rested with the fund trustee and was subject to existing outsourcing arrangements under the SIS Act, it said.
Last October, the Minister for Financial Services and Superannuation, Bill Shorten, said the industry had estimated SuperStream savings would reach $1 billion per annum.
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
93.34 3 y p.a(%)
2
Global X GlobalX FANG+ ETF
37.15 3 y p.a(%)
3
GAM LSA Private Shares AU I
33.96 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
29.68 3 y p.a(%)
5
Plato Global Alpha A
28.73 3 y p.a(%)
