Superannuation trustees need to get their houses in order now if they are going to cope with the onset of the Stronger Super regulatory regime, according to IQ Business Group (IQBG).
Funds must engage with internal and external stakeholders in order to prepare for the regulatory impact of MySuper and SuperStream, according to IQBG chief executive Graham Sammells.
In its Stronger Super Impact Assessment white paper, IQBG provides superannuation trustees with a timeline of all of the implementation dates for the new regulatory environment. The white paper also includes considerations for superannuation funds as they transition to MySuper.
These considerations include product issues (eg, “Does your default product offer a single, diversified investment strategy?”), finance issues (eg, “Review your group life insurance arrangement to ensure no commission has been built into rates”) and marketing issues (eg, “What will differentiate your MySuper from all the others?”).
“The white paper is a practical tool to help superannuation organisations understand both the changes and necessary investment required for MySuper,” Sammells said.
The Impact Assessment white paper focuses on what will change in the industry. It will be followed by an Impact Design paper (What needs to be done?) and an Impact Planning white paper (What’s it going to cost?).
IQGB general manager of consulting Duncan Howard said it was possible for superannuation products to change depending on which variables were focused on during the Impact Assessment stage.
“It is important that every fund is clear about their MySuper strategy and has made a conscious effort to turn a mandatory change into a beneficial opportunity,” Howard said.
IQGB principal consultant Elizabeth McLean said the Impact Assessment white paper would help identify what will actually change for superannuation funds versus pre-conceived interpretations of change.
“The Impact Assessment is the first step in understanding what actions are required immediately from an operational perspective and guides participants through a pre-defined set of questions that need to be asked … a high level of detail is required in this stage of discovery,” McLean said.
