Regulatory bar for super set too low, DST says

24 May 2018
| By Nicholas Grove |
image
image
expand image

Those super funds that aspire to simply comply with government regulation amid the current spate of challenges being faced by the sector are setting the bar too low, according to Luke Nardella, superannuation and wealth management lead at financial software provider DST Systems.

While compliance could be enough to keep the regulators happy, it won’t be enough to be a real contender in a future where fund members are looking for something more and funds are aggressively consolidating, Nardella said.

“Clearly, setting your fund to meet the minimum will do nothing more than place you in a chancy, confusing race to the bottom,” he said.

Nardella therefore suggested a focus on four areas if a super fund wanted to remain in control of its own operations, while also maintaining the flexibility to meet any challenge it may face.

The first area was development of a growth mindset, whereby the fund isn’t constantly “chasing the regulator’s tail,” but focusing on members, not just regulations.

Nardella also said planning should be a focal point, with a fund having a clear understanding of how its business operates today and the gaps it needs to fill in order to move forward.

He also emphasised the importance of building seamless and highly automated processes, as well as being clear about the human resources a fund needed – both in normal and peak workload times – as well as the skills and knowledge its people required.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest developments in Super Review! Anytime, Anywhere!

Grant Banner

From my perspective, 40- 50% of people are likely going to be deeply unhappy about how long they actually live. ...

1 year 3 months ago
Kevin Gorman

Super director remuneration ...

1 year 3 months ago
Anthony Asher

No doubt true, but most of it is still because over 45’s have been upgrading their houses with 30 year mortgages. Money ...

1 year 3 months ago

Governor Bullock took a more hawkish stance on Tuesday, raising concerns over Trump’s escalating tariffs, which sent economists in different directions with their predict...

4 hours ago

Equity Trustees has announced the appointment of Jocelyn Furlan to the Superannuation Limited (ETSL) and HTFS Nominees Pty Ltd (HTFS) boards, which have oversight of one ...

4 hours ago

Following growing criticism of the superannuation industry’s influence on capital markets and its increasing exposure to private assets, as well as regulators’ concerns a...

5 hours ago

TOP PERFORMING FUNDS