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MySuper costs a challenge in 2014: legalsuper
Implementing changes around MySuper over a relatively short period of time is one of the main challenges for legalsuper in 2014, chief executive Andrew Proebstl said.
The fund will have to deal with the increased cost of changes as there is less time to plan for and implement changes in the most efficient way, Proebstl told Super Review.
Proebstl also said additional reporting requirements have added "layers of additional costs" both to the custodian and the fund administrator.
"I would want to emphasise that I don't see a problem with change per se or the costs associated," he said.
"It is just that it is important that change is conceived to comprehensively address issues and then implemented efficiently, ultimately to minimise cost and improve processes for the benefit of members."
But Proebstl added the benefits of the changes would only manifest itself over the longer term.
"I guess the costs need to be seen in a context of what they do for the longer-term environment.
"I think the funds have a responsibility to make sure that they go about implementing the changes in an efficient way and they're pragmatic in what they do."
He also said the changes form part of the extra scrutiny members expect in the superannuation industry.
"I think it needs to be seen in that context: it is part of the transparency and increased scrutiny that the community expects. We just need to respond to it and deliver, and try to deliver it in the most efficient way."
Proebstl said the MySuper brands of super funds would become more important in terms of funds positioning themselves to be more competitive.
He believes funds should focus more on defining and building their brand, as this will become the point of difference between funds in the future.
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