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The post-election prospects for Stronger Super
Group insurance roundtable
Part 1: New data rules forge missing link between insurance and super
Part 2: Can MySuper timeframes actually be met?
Part 3: The search for common standards on terminology and data
Part 4: Stronger Super - auto-consolidation or auto-confiscation?
Part 5: The post-election prospects for Stronger Super
Part 6: The outlook for group insurance
Part 7: Making funds transparent on insurance premium rises
A Super Review roundtable examines how much of Stronger Super is likely to be introduced assuming a change in government on September 14.
Mike Taylor, managing editor, Super Review: Okay, well let’s just move it along a little bit to the reality that we are now not that far out from an election. There are only a few weeks of parliament left where legislation is going to get through anyway. How much of Stronger Super do you think is going to manifest itself, assuming a change of Government on September 14.
I’m going to start with Andrew Bragg because he’s probably been looking at the horizon somewhat more earnestly than others. How much of Stronger Super do you think is going to find its way into legislation to be enacted to create the challenges for the industry?
Andrew Bragg, policy director, Financial Services Council: Well if you look across the three streams, you’ve got the governance piece, the prudential standards are in place, there’s not much more needed there.
I think if you assume there will be change in Government, which I think is the basis of your question, I would assume that the Coalition will probably revisit some of those governance issues.
Secondly MySuper, if the tranche four bill passes and the regulations are tabled, which are needed for things like portfolio holdings disclosure and executive remuneration disclosure, my judgement would be that MySuper would probably happen.
If that does, then you get a complete monster package. Then again, under a Coalition scenario, I think I would expect them to look at some targeted changes – but fundamentally the MySuper regime will remain.
Then SuperStream – look, it’s messier. There are parts that aren’t finished and I think it’s very murky super stream, so no one wants to talk about it.
Mike Taylor, Super Review: Is that true, no one wants to talk about SuperStream? We are.
Alex Hutchison, CEO, Energy Industry Super: I think the custodians, a number of the custodians and the administrators, have gotten together and they’re talking about it. They’ve created a body kind of like, from what I understand, the Australian Payments Clearing Association, so I think they’re definitely talking about it.
I think that’s all in their best interest from an efficiency point of view and also to satisfy these queries. But I think it’s a very complex area and it’s going take time to work through all those queries. No one’s got all the answers yet.
Mike Taylor, Super Review: Geoff, I know you’re a student of what’s going on.
Geoff McRae, senior analyst, Rice Warner: I really have not much more to add. I think Andrew’s made a good sort of summary there and there is quite a deal of uncertainty.
I don’t think, if there’s a change that, there’ll be a big change – probably a few targeted changes and not very much other.
Jeff Scott, executive manager, business growth services, CommInsure: When we look at why SuperStream was put in to begin with, it was put in so that when a member is going from one fund to another the changeover can be done in an efficient manner.
They can have their investments tracked quickly, processed quickly and applied to their new fund as quickly as possible, consistent with regards to communication between the various funds, to make it easier for the member.
I think that if the Coalition does win the next election, it’s going to be difficult for them to say that this is a bad idea.
Now, there might be some tweaking around the edges, possibly. But the reason why SuperStream was brought in was a member benefit situation so that if, in fact, they want to move from one fund to the other, they don’t lose money in the delay that it takes to get their funds transferred from source super fund to the other one.
I think most funds would agree that that’s not a bad idea. So I think in principle it’s a good idea – now the only question is how easy is it going to be to get from the principle to the implementation?
Adam Kirk, general manager, distribution, Australian Ethical: I think also there’s the data retention requirements and making sure we’ve got all the data and collecting it, keeping the data for lengths of time. It’s going to be hard for the Coalition to come in and suggest that
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