The federal government's MySuper reform could raise merger activity in the superannuation industry, according to JP Morgan.
With consolidation of the industry an emerging trend over the last few years, merger activity is likely to increase over the next year as the regulatory measures commence over this year.
"We think that it's likely the wave of consolidations and mergers will continue, because there is clearly going to be some funds that just find it all too hard," JP Morgan head of sales and client relationship management Bryan Gray told InvestorDaily.
"I suspect that when MySuper licences go through that the regulator might well force some of the funds to seek mergers, so we expect the consolidation trend of the last 24 months to continue."
JP Morgan predicts that super funds will spend the first half of 2013 focused on getting MySuper licence applications lodged.
The authorisation process for registrable superannuation entities (RSE) licensees wishing to offer MySuper products commenced on 1 January this year.
Once authorised, RSE licensees could offer the low-cost super products from 1 July onwards.
With the reforms in full swing, JP Morgan has said they will continue to expand their technology base to assist clients who are looking for support.
"There have probably been more industry changes over the last 12 months than there have been in quite some time, so what we're doing is gearing up to support our clients through what we expect will be a pretty turbulent period of the regulatory front, and deliver the data and information that they need to meet those requirements," Mr Gray said.
"A number of our clients have gone through mergers, so as they start to grow they'll look to us to provide more and more services to them."
