There could be as few as 25 or 30 major superannuation funds left in Australia in the decade following the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.
That is the assessment of former Labor Assistant Treasurer, Nick Sherry who used a panel discussion at the Association of Superannuation Funds of Australia national conference in Adelaide to suggest that the Royal Commission would hasten consolidation in the industry.
While suggesting that retail superannuation would face the most challenges flowing from the Royal Commission, Sherry acknowledged that the 25 to 30 remaining funds would be comprised of retail, public sector and industry funds.
He said that while industry funds might confront fewer challenges from the Royal Commission findings, those that failed to deliver investment performance would face pressure to merge and consolidate.
Australian Prudential Regulation Authority (APRA) deputy chair, Helen Rowell said the superannuation industry was already seeing significant shifts, not least as a result of the major banks choosing to exit the wealth management sector.
She said that when this was factored together with financial services technology she believed the industry would end up looking very different.
