POWERED BY MOMENTUM MEDIA
Poor gateway testing a cause for SuperStream concern
Insufficient interoperability testing on SuperStream rollover and contributions gateways is the biggest risk facing the superannuation industry, according to SuperChoice chairman Peter Philip.
SuperChoice has started interoperability testing on its SuperStream contributions and rollovers solution SuperGATE, which builds upon its SuperChoice platform. The product will be available for client testing from April with a view to rollout in May.
"We believe the biggest risk facing the industry is insufficient interoperability testing between gateways which could make it impossible for messages to flow between participants who are using an insufficiently tested gateway," he said.
"We think it is crucial that fund trustees understand this risk and ensure that they are dealing with a gateway provider that is able to complete proper interoperability testing in the extremely short time available," said Philip.
Philip said all operators had to commit to being part of a highly reliable trading network, with stringent service requirements for resolving issues.
"Operating this type of network is a highly specialised discipline that requires a shared infrastructure model to function with the sort of reliability that the superannuation industry needs to maintain trust in the system," he said.
Association of Superannuation Funds of Australia chief executive Pauline Vamos said shared infrastructure systems such as SuperChoice could help the industry share the cost and pain of implementing the new super payment system.
"It also allows funds and administrators to focus on the necessary re-engineering of their internal processes that currently rely on paper-based processes," she said.
SuperChoice was a charter member of the Australian Taxation Office's gateway technical and compliance working group to finalise the Gateway Network Interoperability Agreement.
The IQ Group's Graham Sammells said the industry faced a risk because the market for SuperStream technologies was still immature. He warned funds to remain flexible as technologies would change.
Challenger announced it was the first fund to sign on to a rollover gateway last month, choosing Westpac Institutional Bank's QuickSuper for its Challenger Retirement Fund.
AUTHOR
Staff Writer
Money Management staff writers are writers who contribute to the website from time to time. If you would like to discuss the content contained within this article please contact us.
Recommended for you
Jim Chalmers has defended changes to the Future Fund’s mandate, referring to himself as a “big supporter” of the sovereign wealth fund, amid fierce opposition from the Coalition, which has pledged to reverse any changes if it wins next year’s election.
In a new review of the country’s largest fund, a research house says it’s well placed to deliver attractive returns despite challenges.
Chant West analysis suggests super could be well placed to deliver a double-digit result by the end of the calendar year.
Specific valuation decisions made by the $88 billion fund at the beginning of the pandemic were “not adequate for the deteriorating market conditions”, according to the prudential regulator.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.56 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.06 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.81 3 y p.a(%)
