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Limited lifespan for external gateway model
The shared infrastructure model for rollover gateways has a limited lifespan, according to DST Bluedoor executive director Mark Cassar.
Cassar said implementing an external gateway for rollovers and contributions would require the same amount of work as in-sourcing the function.
Most funds already had the infrastructure in place, with the exception of some funds that still worked off legacy systems, he said.
"I think the level of work required to integrate with one of these message gateways would be marginally different than what it would require to implement it in your own environment, and it will be more expensive on an ongoing basis to run," he said.
Cassar said he believed super funds would start off with the shared infrastructure model to meet the 1 July deadline before internalising the process due to cost considerations.
Separately, DST Bluedoor has designed a new application for funds to comply with the new standard for rollover transactions. Cassar said most other players in the space were trying to be a service provider; however Bluedoor SuperStream allowed funds to act as their own hubs.
"Most of the other players in this space are trying to be a service provider — they're going to outsource the message transformation, the delivery of cash into their accounts and all that sort of stuff.
"We're providing the technology which will allow super funds or third party administrators to act as the hub themselves," he said.
Cassar said the product was designed to abstract changes in the SuperStream world to funds' back-office registries and would be updated as the message standards evolved, allowing funds that did not have the time to upgrade entire systems the flexibility to adapt over time.
The solution would be applied to existing DST Bluedoor clients and talks were progressing with others looking for a solution, Cassar said.
Extended reporting tools, message dashboards and other web-enabled services would be available after the 1 July deadline, but its key focus now was finalising the testing schedule with the Australian Taxation Office's upcoming pilot validation in May.
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