One of the industry standards which will make the transition to choice of fund easier for employers has been launched by the Assistant Treasurer, Mal Brough.
The so-called swimEC system, an electronic standard agreed between the Association of Superannuation Funds of Australia (ASFA), the Investment and Financial Services Association (IFSA) and the Financial Planning Association, allows employers to electronically transfer super contributions and accompanying personal information to participating superannuation funds.
In launching the new system in Sydney yesterday, the minister said it represented “a great example of what can be achieved when industries, government agencies and commercial groups work together.”
“This is another milestone on the road to super choice,” he said.
Brough said that swimEC would promote the development and adoption of industry-based message standards for electronic commerce in the superannuation, wealth management and investment management environments.
He said the industry had consulted with the Australian Taxation Office and commercial partners to create what represented a consistent, user-friendly approach for, amongst other things, paying employees; superannuation contributions electronically or using BPAY.
The chief executive of the ASFA, Philippa Smith said the new electronic standard would increase efficiency in the superannuation and investment markets by streamlining transactions and reducing error rates.
The chief executive of IFSA, Richard Gilbert said that it was to be hoped that, ultimately, all superannuation funds and employers would become participating partners in the new standard which would make superannuation contributions as easy as making internet payments into a bank account.
