The ASIC report into death benefit claims revealing the devastating impact of poor industry practices on grieving Australians has again highlighted the pressing need for change. While some funds have taken up the cudgels, others are still playing hardball on improving their service offering.
A Retirement Income Covenant obligation notwithstanding, there is still a paucity of these complex products on offer. The Advice Through Superannuation draft legislation might offer a way forward.
Industrial-strength technology passed onto SMSFs
(Pictured: Rob De Dominicis)
SMSFs are starting to get a similar level of sophistication at the back end of the administration systems being offered to them as the very big funds have, with the first live SuperStream messages for electronic choice contributions. Systems provider GBST and SMSF administrator Class Super announced their successful program last week.
The GBST ‘gateway’ was completed by a cohort of super funds, banks and SMSFs, allowing SuperStream-compliant contributions from employers through to the funds, including choice contributions and rollovers specifically directed to SMSFs.
Rob De Dominicis, the Australian CEO of GBST Wealth, who is based in London, said the launch of the service was “crucial” to SMSF trustees.
He said: “This level of automation will contribute positively to Australia’s rapidly growing SMSF sector. Enabling safe and successful delivery of contribution information to the SMSF sector is key to making SuperStream a reality for employers.”
GBST says that, as a member of the initial GBST gateway group, Class Super is now receiving contributions and processing through to end ledgers on behalf of its clients well ahead of other industry players.
Kevin Bungard, CEO of Class, said the ability for key players to collaborate and deliver innovative solutions was a great indicator of the technical capabilities within the SMSF sector.
SuperStream is a part of the previous government’s Stronger Super package, designed to streamline contributions and fund-to-fund rollovers electronically, improving the quality of data in the process. Most of the big super funds, which use large external administrators, are at, or near, compliance status. Various ‘gateway’ services have sprung up to cater for smaller funds. The ATO has a register of them on its website. SuperStream is being phased in, with employees of firms with fewer than 20 employees due to start next July.
