Superannuation administration in financial services this week

One million members in unsustainable funds

APRA has identified one million Australians as members of super funds it describes as 'unsustainable' ¹.

The AFR reported this week that APRA counts one million Australians in super funds it describes as 'unsustainable' ¹. The number comes from the prudential regulator itself and was reported by an established publisher ¹.

In the same week, Super Review published lessons from APRA's stress test under the line that failure is not an option ³. Together the two reports keep fund sustainability, and the members exposed to weaker funds, at the centre of APRA's supervision of the sector ¹³.

What it means: Funds seen as unsustainable face pressure to improve or merge, which brings successor fund transfers and member data migration into scope for administrators. Trustees should check that their administration platform could support a transfer at short notice.

Questions for vendors:

1. How many successor fund transfers have you completed in the past three years, and how long did member data migration take?
2. What reconciliation reports do you provide to evidence complete transfer of member balances and insurance cover?

In the registry: ATO Gateway (SuperChoice)

Valuations and investment oversight in focus

ASIC has called for closer scrutiny of super fund valuations ².

Super Review reported that ASIC is demanding closer scrutiny of super fund valuations ². The call puts the valuation process, and the governance around it, in front of trustees this week ².

Super Review also drew lessons from APRA's stress test, arguing that failure is not an option ³. With ASIC focused on valuations and APRA on stress testing, both regulators are examining how funds oversee their investments ³². The two stories appeared within a day of each other in the same trade publication ³².

What it means: Unit prices depend on asset valuations, so administrators running unit pricing will be asked for clearer evidence of valuation inputs and revaluation timing. Funds should test whether their registry can reprice quickly when a valuation changes.

Questions for vendors:

1. How does your unit pricing process take in revaluations of unlisted assets, and how often can it run them?
2. What audit trail do you keep of the valuation inputs used in each unit price?

In the registry: ATO Gateway (SuperChoice)

Payday super lifts contribution flows

Financial Newswire reported a doubling of superannuation guarantee flows and identified the funds gaining under payday super ⁴.

Financial Newswire reported that superannuation guarantee flows have doubled, and used the data to identify the funds it sees as winners from payday super ⁴. The report ties the growth in flows to the payday super regime ⁴.

The story measures payday super through contribution flows into funds ⁴. It shows that the change is now visible in fund cash flows, and that some funds are gaining more from it than others ⁴.

What it means: Higher and more frequent contribution volumes test SuperStream processing, employer data quality and the speed of allocation to member accounts. Funds should confirm their administrator and clearing house can carry the load without allocation delays.

Questions for vendors:

1. What peak daily contribution volume has your platform processed, and what is your allocation time to member accounts?
2. How do you handle unmatched or error contributions from employers, and how quickly are they resolved?

In the registry: SBR2 Gateway (MessageXchange), OZEDI Superannuation (OZEDI), ATO Gateway (SuperChoice)

Advice boundaries and investment menus

The FAAA backed APRA keeping professional and intra-fund advice separate, while Brighter Super widened its indexed options ⁶⁷.

ifa reported that the FAAA supports APRA keeping professional advice and intra-fund advice separate ⁶. The position bears on how super funds structure the advice they offer members ⁶.

Separately, Super Review reported that Brighter Super has expanded its indexed investment options following demand from advisers ⁷. The move shows advisers influencing the investment menus that super funds offer ⁷. Both stories point to advice and investment choice as active areas for funds this week ⁶⁷.

What it means: Funds offering advice need systems that record which type of advice a member received, and new investment options must flow through switching, unit pricing and member disclosure. Both depend on the administration platform.

Questions for vendors:

1. How does your advice tooling record whether a member received intra-fund or personal advice?
2. How quickly can a new investment option be added to the switching menu and member portal?

In the registry: Pension Systems (KFintech)

MUFG cleared to pursue GROW acquisition

MUFG has received ACCC clearance for its proposed acquisition of GROW ⁵.

Super Review reported that the ACCC has given MUFG a green light for its proposed acquisition of GROW ⁵. The report describes the transaction as proposed, so completion is still to come ⁵.

The clearance is a competition decision by the ACCC on a deal reported by a superannuation trade publication ⁵. It was the only clearance of a superannuation administration deal reported by an established publisher this week ⁵.

What it means: Funds using either business should seek clarity on platform roadmaps, service continuity and contract terms through any integration. Ownership changes at an administrator can shift priorities for existing clients.

Questions for vendors:

1. Will the acquisition change the platform roadmap or support model for existing clients?
2. What contract protections apply if service teams or systems are merged?