The advent of MySuper is going to accelerate an end to differences between the industry and retail funds as the retail sector moves into the industry funds space, according to Equity Trustees managing director Robin Burns.
The big retail providers had missed out on their opportunity to dominate superannuation 15 years ago and let the industry funds build themselves up, but the advent of MySuper is going to invite retail back into the industry fund space, Burns said.
Retail providers like BT have previously chosen not to provide cheap super products out of concerns not to cannibalise their own clients and distribution channels, but MySuper is going to push them to beat industry funds in that space, he said.
"Once they've made that decision they can get product out as cheaply as anyone, and be as good as anyone," Burns said.
The differences between industry funds and a retail provider are going to rapidly disappear, he said.
"It's going to be a very interesting space for the funds to be in, because the industry funds have got the edge against very aggressive organisations with lots of resources, terrific brands, and lots of expertise," Burns said.
The industry fund sector had a lot of challenges in terms of transparency, governance and expertise, he said.
Burns added that he saw consolidation in the industry as making it easier for the regulator to handle and therefore in its interest, but it didn't necessarily create better results for the investor.
