Recent Events CMSF 2005

Our theme this year, not surprisingly is ‘The Challenges of Choice’.
Choice of Fund is of course, not new to the superannuation industry; it was first foreshadowed in the 1996 election campaign. After 8 longs of years, of stops and starts in the Senate, the Choice of Fund legislation takes effect from 1 July 2005.

With the regulations due to be released in March 2005, CMSF 2005 is well timed to discuss the far-reaching implications of the new regulations.

We know that many funds and sponsoring organisations have been preparing for this eventuality for some time but as an industry, how prepared are we really for Choice of Fund? The impact is largely unknown. It is impossible for us to know what the reaction from members; employers; providers and other stakeholders will be. Will there be large churning of members; will there be mis-selling, or will it be business as usual?

We know from the UK and Chile that the experience for some was disastrous? How does the industry as a whole make sure that these experiences are not replicated for Australian super fund members? Coinciding with Choice of Fund, Trustees will also have deal with APRA licensing; what will this mean for super funds? Will we find more funds closing to new members or merging as a result of increased regulation and competition?

The aim of CMSF 2005 is to explore Choice of Fund and its implications in detail; and will equip Trustees with the tools and knowledge they will need to guide them through one of the most challenging times the superannuation industry has ever experienced.

Fiona Reynolds
Manager and Convenor, CMSF