Merging superannuation funds are likely to be allowed to offer two MySuper products.
Under the Stronger Super proposals, each registrable superannuation entity will be required to offer just one default product, but the Australian Prudential Regulation Authority (APRA) could make an exemption for consolidating funds.
"Under Stronger Super, each APRA-licensed fund can only offer one MySuper product, but there will be a limited exception to this when two funds merge," Australian Institute of Superannuation Trustees project director David Haynes said.
Haynes, who is also a member of the SuperStream Working group, made the comments yesterday at the IQPC Merger and Acquisitions for Super Funds 2011 conference in Sydney.
But Haynes did say the regulator would likely review the dual MySuper structure over time.
"[Funds] will be able to offer two MySuper products, although APRA will be engaging with the licensee to see if the trustee should be looking at merging the product as well," Haynes said.
