CBus and First Super have become the first two industry super funds to sign up to the federal government's MySuper product, lodging applications for authorisation with the Australian Prudential Regulation Authority (APRA).
In a statement following receipt of the applications, federal assistant treasurer David Bradbury described the move as a "key milestone in the implementation of the Gillard government's superannuation reforms."
The Australian Institute of Superannuation Trustees (AIST) - which represents both CBus and First Super -expects that the majority of its member funds will follow suit, according to an email seen by InvestorDaily.
"Feedback from our member funds is that most intend to lodge their application in the first few months of this year, so that they have time to go through the process with APRA and are ready for the 1 July start date," said AIST executive manager of policy and research Tom Garcia.
"The signs are there that MySuper will create a very competitive super environment as funds determine ways to differentiate their offerings, promote their brand and communicate to their members," he added.
AIST expects that explaining the benefits of MySuper to employers will be a key priority of super funds in the first half of 2013.
In a statement issued on 20 December, $1.8 billion industry fund First Super announced its intention to be one of the first funds to lodge an application upon the opening date of 2 January and rejected the "myth of economies of scale."
"It's certainly been a challenging process, but First Super has shown once again that small funds are just as capable as larger ones of meeting enhanced compliance requirements in a short timeframe," said First Super co-chair Allan Stewart.
