Retail funds lagging on MySuper transfers
Retail superannuation funds appear to be dragging the chain when it comes to transferring members with accrued default balances to a MySuper arrangement, according to the latest data published by the Australian Prudential Regulation Authority (APRA).
The data revealed a steady flow of accrued default balances into MySuper balances well ahead of the 1 July, 2017, final deadline but retail funds have been the slowest to do so, lagging industry, corporate and public sector funds.
The APRA analysis stated that, as at 30 September 2015, retail funds held 9.5 per cent of total assets in accrued default amounts, compared to 1.5 per cent for corporate funds, 0.4 per cent for public sector funds and 0.1 per cent for industry funds.
The APRA analysis said that of the 62 super funds yet to make the transfers, 48 were under the trusteeship of a licensee with an authorised MySuper product, while 14 were under the trusteeship of a licensee with no authorised MySuper product.
APRA said that with less than two years remaining until all super funds had to transfer the existing balances of their default members to MySuper products, 62 funds held a total of $51.9 billion (4.2 per cent of total assets) in accrued default amounts across 2.5 million member accounts.
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