Changing regulatory pressures will likely drive a shift in superannuation funds’ operational cultures, according to QMV Super Solutions.
Speaking to media in Sydney yesterday, QMV Super Solutions principal consultant Jonathan Steffanoni said the Senate was currently reviewing reforms to “shift towards assessing the outcomes of decisions”.
“We find that this is going to be quite interesting in that it’s intended to promote cultural change within some of these organisations in an environment where decision making has been based on process rather than outcomes,” he said.
As a result of these reforms, Mr Steffanoni expects that regulators will require super funds to have “really robust KPI monitoring and reporting in place” and which also align with the metrics used by APRA to assess which funds require “extra scrutiny”.
“That’s going to be interesting and much broader than just looking at those funds that are already in the spotlight,” he said.
Mr Steffanoni also predicts the final Productivity Commission report on competition and efficiency in the super industry (due to be released in June 2018) will push for an “open super” and “open pensions” regime in which members have greater access to their financial data.
“It may take some time to be picked up as policy from government, however the industry should start to prepare for that,” he said.
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