Just weeks out from the Australian Competition and Consumer Commission (ACCC) making its final decision around those eligible to bid for Pillar Administration, a new survey has revealed overwhelming support for more competition in the superannuation administration sector.
The survey, conducted by Super Review during the recent Association of Superannuation Funds of Australia (ASFA) conference, noted that the outsourced administration service provider market was very concentrated with limited choice and asked how important respondents believe it was for new providers to enter the market.
The survey found that nearly half of all respondents (48.9 per cent) believed it was very important, while a further 49.2 per cent believed it would be useful, while only 6.3 per cent believed it was unimportant.
The survey findings come as the ACCC considers whether Link Market Services should be allowed to bid for Pillar which is being sold by the NSW Government subject to a number of conditions.
The ACCC has already issued a preliminary opinion indicating that it believes Link has already achieved a dominant market position but subject to further representations on the issue.
In the absence of Link being permitted to bid for Pillar, the likely contenders are Mercer and private equity interests.
The profit-to-member super funds are officially operating as a merged entity, set to serve over half a million members.
Super Review announced 21 winners at the annual Super Fund of the Year Awards, including the recipient of the prestigious Fund of the Year Award.
A research firm has given UniSuper a glowing review, praising its strong leadership and “compact team”, as well as its “creditable governance” structure.
Assistant Treasurer Stephen Jones has defended the government’s plan to modestly cut tax concessions for Australia’s wealthiest superannuation accounts, saying it is a “fairer outcome”.