Some Straight-forward Cooper Review Facts
 
FACT: ALL super funds will have to undergo Business Transformation due to the Cooper reforms. Why?

• All funds have to develop a MySuper simple, cost-effective product, with a single, diversified portfolio of investments to suit the vast majority of Australian workers.

• Trustees of funds will have more responsibility to scruitinise the products offered to members who want choice. Although, members will also carry more responsibility for the choices they make.

• All funds will be subject to changes in Trustee Governance, including appointing a 'Trustee Director' and minimum number of Non-Associated Directors. It is also proposed that the industry as a whole develop a Code of Trustee Governance.

• All funds will have to tighten their Investment Governance procedures. Performance related fees will become the exception, not the norm. Trustees will now become obliged to consider the tax consequences for members of their investment strategies.

• Funds will be required to be more transparent in reporting outcomes. APRA will have the power to develop 'outcomes reporting standards' and there will be web-based disclosures to the system at large (e.g. members, employers, regulators, ATO, etc.).

• All funds will be more accountable to members for insurance products offered within super including ensuring adequate 'default' life insurance/PTD cover and the disclosure and appropriateness of fees.

• Tighter controls are proposed to ensure the financial integrity of superannuation as a system. Funds require direct access to capital and trustees will be required to have higher regard for liquidity risk. A radical proposal is that clearing houses be placed under the regulation of APRA.

• All funds will need to improve their back-office effectiveness, efficiency and transparency under the SuperStream requirements. SuperStream does not just apply to the funds but the system as a whole with systems integration between the funds, employers, regulators and ATO, using a members TFN as the primary identifier.

FACT: Many funds will have to merge to meet some of the Cooper Review requirements. Why?

• To achieve the economies of scale to meet the efficiencies required by the Cooper Review reforms.

• To share the costs of the extensive Business Transformation required.

In fact, this is where the most immediate effects of the Cooper Review are being felt, with 5 mergers known to be underway already. For more details of these mergers, please refer to our separate blog on merger activity in the Superannuation Sector.

FACT: The success of these inevitable business transformations and mergers, will depend upon the quality of delivery of the transformation projects and post-merger integration projects. This is Calibre's area of expertise.

 
 
How Calibre Can Help You
 

• Calibre are specialists in Post-Merger Integration and Business Transformation.

• We have knowledge and experience of the Superannuation and wider Financial Services industries.

• We keep ourselves at the hub of what is happening in the industry through research and keep our clients aware through regular blog updates.

  
Why Calibre is Better for You, the Client
 
Our approach ensures optimal financial returns for our clients that we can measurably demonstrate. These returns are achieved through a combination of:

• Cultural alignment to business strategy;

• Staff engagement and talent retention;

• Member & employer engagement and retention;

• Brand alignment;

• Operational integration and optimisation;

• Systems implementation and integration.

 
All of the above are seamlessly delivered within a project framework that manages risk and quality of results. These oustanding results come from focusing on the ‘people’ side of projects, with the 3 principles of Culture, Leadership and Communication driving effective change management.
 
This is all further supported by best-practice methodology and specialist expertise.
 
Also look out for the Calibre's forthcoming full response to the Cooper Review in the Calibre Library...