Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Home / 27

Implementation is a hot issue

It is often said, “Take care of the big issues and the smaller ones will fix themselves.” The role of the superannuation pool in the economy and the evolution of the super system are clearly complex and important conversations to start now and continue over the longer term. Much information (for example the ASFA White paper on evolving the system) contributes to the depth and effectiveness of these conversations. When we embark on these conversations we need to have regard to the environment both now and in the future.

But there is another conversation that is going on at this time, and that is the challenge of the implementation of Stronger Super and FOFA regulatory reform. Many of you will immediately cease reading this article on the basis that such a conversation is too technical and detailed or just not sexy enough.

I have news for you – implementation is a hot issue! It is filling the minds, the time and devouring resources across the industry. We have so much to implement, in so little time and without a full picture of the regulatory framework, that nervousness pervades our daily lives. ASFA recently embarked on an exercise to centralise and document all the implementation issues across Stronger Super (ASFA does this work so that the industry does not waste member’s money by duplicating non-competitive activities).

We came up with three tables. The first table outlines issues that need an adjusted policy setting because the regulatory outcome is unworkable - there are 13 of those. The second table outlines gaps or mistakes in the legalisation - there are also 13 of those. The third table outlines all the issues where there is interpretive confusion or the need for further guidance – again the magic number is 13. We of course have outlined what the solution is and which body or regulator should fix it. The fixes fall on the shoulders of ASIC, APRA, Treasury, parliament and the ATO. Often it needs two bodies or two regulators to fix an issue.

The tables reflect a point in time and the list grows weekly as funds and super providers implement and engage with the detail, and as such the tables will change and in the end hopefully disappear.

What we have asked for and what we need is a pragmatic and open approach to implementation by regulators. We have called on all of them to provide written public statements so that the industry can manage costs as well as risks. There are different implementation issues across disclosure, SuperStream, data collection and MySuper and in many cases there are good reasons to delay implementation based on risk alone.

This cry is not about shirking our responsibility to fund members: this cry is about being able to implement with the best interest of members in mind, not a regulatory stick!

But there is a silver lining. We have seen a level of collaboration across the industry that is unprecedented and I have no doubt that this collaboration will be built upon over the coming months and years.

 

Pauline Vamos is Chief Executive Officer of the Association of Superannuation Funds of Australia (ASFA).

 


 

Leave a Comment:

RELATED ARTICLES

How to fix the Commonwealth Superannuation Scheme

Jeremy Cooper on super becoming too big

How a sidecar can keep super motoring along

banner

Most viewed in recent weeks

16 ASX stocks to buy and hold forever, updated

This time last year, I highlighted 16 ASX stocks that investors could own indefinitely. One year on, I look at whether there should be any changes to the list of stocks as well as which companies are worth buying now. 

UniSuper’s boss flags a potential correction ahead

The CIO of Australia’s fourth largest super fund by assets, John Pearce, suggests the odds favour a flat year for markets, with the possibility of a correction of 10% or more. However, he’ll use any dip as a buying opportunity.

2025-26 super thresholds – key changes and implications

The ABS recently released figures which are used to determine key superannuation rates and thresholds that will apply from 1 July 2025. This outlines the rates and thresholds that are changing and those that aren’t.  

Is Gen X ready for retirement?

With the arrival of the new year, the first members of ‘Generation X’ turned 60, marking the start of the MTV generation’s collective journey towards retirement. Are Gen Xers and our retirement system ready for the transition?

Why the $5.4 trillion wealth transfer is a generational tragedy

The intergenerational wealth transfer, largely driven by a housing boom, exacerbates economic inequality, stifles productivity, and impedes social mobility. Solutions lie in addressing the housing problem, not taxing wealth.

What Warren Buffett isn’t saying speaks volumes

Warren Buffett's annual shareholder letter has been fixture for avid investors for decades. In his latest letter, Buffett is reticent on many key topics, but his actions rather than words are sending clear signals to investors.

Latest Updates

Investing

Designing a life, with money to spare

Are you living your life by default or by design? It strikes me that many people are doing the former and living according to others’ expectations of them, leading to poor choices including with their finances.

Investment strategies

A closer look at defensive assets for turbulent times

After the recent market slump, it's a good time to brush up on the defensive asset classes – what they are, why hold them, and how they can both deliver on your goals and increase the reliability of your desired outcomes.

Financial planning

Are lifetime income streams the answer or just the easy way out?

Lately, there's been a push by Government for lifetime income streams as a solution to retirement income challenges. We run the numbers on these products to see whether they deliver on what they promise.

Shares

Is it time to buy the Big Four banks?

The stellar run of the major ASX banks last year left many investors scratching their heads. After a recent share price pullback, has value emerged in these banks, or is it best to steer clear of them?

Investment strategies

The useful role that subordinated debt can play in your portfolio

If you’re struggling to replace the hybrid exposure in your portfolio, you’re not alone. Subordinated debt is an option, and here is a guide on what it is and how it can fit into your investment mix.

Shares

Europe is back and small caps there offer significant opportunities

Trump’s moves on tariffs, defence, and Ukraine, have awoken European Governments after a decade of lethargy. European small cap manager, Alantra Asset Management, says it could herald a new era for the continent.

Shares

Lessons from the rise and fall of founder-led companies

Founder-led companies often attract investors due to leaders' personal stakes and long-term vision. But founder presence alone does not guarantee success, and the challenge is to identify which ones will succeed in the long term.

Sponsors

Alliances

© 2025 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. To the extent any content is general advice, it has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.