Member investment switching (MIC) will be a key policy priority for the Australian Institute of Superannuation Trustees (AIST).
"We believe member investment switching will be one of the big issues from 2008 to well into 2010," AIST policy and research manager Andrew Barr told an audience at the Conference of Major Superannuation Funds yesterday.
The association will conduct research on MIC from 2007 to 2008 and will ascertain how funds are communicating risk to their members.
Data will be linked to member demographics.
"We want to understand why and how and who are switching. We will also look at the role of media reporting and how that affects member choice," Barr said.
Information will also be used to help funds decide whether they should be moving to restructuring default funds to suit member age.
"There has been a lot of discussion on whether current default funds suit member age and risk profile. This information should be able to assist trustees in making informed decisions," Barr said.
On Tuesday the Australian Prudential Regulation Authority announced at the conference that it would step up its focus on liquidity risk on the back of member switching.
