Superannuation funds and providers are expecting to work closely with the Australian Prudential Regulation Authority (APRA) during the application process for a MySuper licence.
The MySuper start date for implementation is 1 July 2013, however all superannuation funds that accept default superannuation guarantee (SG) contributions must be approved by APRA for an amendment to its licence.
Applications will be accepted from January next year and APRA has six months to grant approval.
"I wouldn't necessarily say we need help from APRA, rather it's best to work together with APRA to ensure that when you do put in the application form that you have answered the questions correctly," AustralianSuper general manager of operations Shawn Blackmore told InvestorDaily.
"We have the resources in place, a compliance team who's geared up and have been talking to APRA about it and we're staffing up because we know there'll be a fair bit of work.
Blackmore expects a lengthy application form, which AustralianSuper hopes to "walk through with APRA".
AustralianSuper has a working group currently building high level draft plans of the direction and elements of its low-cost super offering.
However, there is a concern that the lack of legislation is stunting further progress on MySuper, Blackmore said.
"Until we see the final tranche and the application itself, we just don't know the final offer and it's actually hard to pinpoint which way you're going to go," he said.
"We're doing as much as we can with the information we have but to make our final decisions we need to see the final legislation in place."
He expects the third tranche to be released in April and passed shortly thereafter in order smoothly reach the 1 July 2013 date.
If it slips too far past the May-June period, the industry will struggle to implement the changes, he said.
Russell Investments director of superannuation Tim Furlan said the company has not approached APRA as yet but expects to work with the regulatory body to ensure that the application process runs smoothly.
"We'll be sending drafts and getting their input before we make the final lodgement," he said.
Furlan said Russell would use its experience of going through other licence applications in the past, such as the Registrable Superannuation Entity, when it applies for a MySuper licence.
"Having been through that process, my expectation is that the MySuper process shouldn't be completely dissimilar," he said.
Furlan said a final value proposition and the features for its offer have not yet been finalised although he remains optimistic that it will be easy to work through.
Russell is not looking to come up with a completely different value proposition that doesn't fit with its business and direction, he said.
Colonial First State product and channel development manager Peter Chun said it is easy to image that there's going to be an "enormous queue outside of APRA" regarding MySuper applications.
"We've spoken to APRA - they are gearing up, they are concerned about the volume and the sorts of applications that will be landing their way," Chun said.
"The big issue for us is finalising our MySuper offering, getting the product features right, setting up our MySuper investment strategy and getting all that ready so that we can go to APRA in time and get the approval."
Superannuation funds should not leave these tasks too close to January to allow for a fairly orderly process rather than for APRA to be swamped with applications at the last minute, Chun said.
"It will be important for every super fund to have a MySuper offering available come start date of July 2013 otherwise you cannot receive default SG contributions and super funds will not want to be in that position," he said.
Meanwhile other providers have been proactive, already releasing an offer to market with the intention of it becoming the MySuper product.
SmartStart Super was launched last October in accordance with the MySuper requirements, Bendigo and Adelaide Bank senior manager of technical and research Julie McKay said.
"We still need to apply anything the legislation finalises but the whole purpose and design of that product was to be MySuper compliant and my understanding is to then apply to APRA to ensure you're compliant with the legislation," McKay said.
SmartStart Super offers simplicity and features that are automatically adjustable to a member's lifecycle.
"That really appeals to the default fund approach," she said.
