In recent months there has been a lot of commentary – and regulatory exhortation – in the superannuation sector suggesting that a wave of fund mergers is imminent.
The proposed changes now appear to strike a more reasonable balance for the industry.
Regardless of how, and in what form, the Report’s recommendations are implemented, they will undoubtedly have a significant impact on the structure of the superannuation industry for many years to come.
For many employers, complying with complex superannuation rules is an enormous challenge and despite best intentions, there are occasional errors.
The next decade will see a major rationalisation of Australia’s superannuation sector – with the number of funds in Australia being cut in half. But this is a natural evolution from the current market situation which is already seeing a two-speed divide between larger and smaller funds
The launch of a number of new superannuation products to the market in the last six-months has many industry commentators sceptical about their value1
It seems clear that superannuation funds are now entering a new era of regulatory oversight with transparency strongly in their sight.