New entrants may enter MySuper market
By Christine St Anne
Friday 13 August 2010
The introduction of MySuper could pave the way for new entrants to move into the financial services industry, according to recruitment firm Profusion.
"The MySuper product is about low cost. Lower costs reduce the barriers to entry, so we will most likely see new players enter the financial services industry," Profusion director Ashton Bilbie said.
Bilbie said international firms could potentially set up low-cost superannuation products in Australia.
Two weeks ago, Virgin Money renewed its strategy in the financial services sector. The company announced plans to add more staff to its newly-expanded superannuation service.
Commenting separately to the Virgin Money announcement, Bilbie said overseas companies might have plans to enter Australia.
"I believe there could be offshore groups looking at the Australian market who are potentially looking to build a presence in the low-cost super space," he said.
Companies could also be gearing up to directly distribute to their clients, he said.
"If the changes [from MySuper] come into force, we will see retail master trusts launch direct employer sales teams," he said.
"Good candidates for this sort of role would be people from a corporate superannuation background who may no longer be in a viable business."
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