Administration services for self-managed superannuation fund (SMSF) clients supplied through product provider relationships are likely to become more specialised in the near future, an executive servicing the market has said.
This could prompt more arrangements like the recent SuperConcepts agreement with Colonial First State.
“I think two things will happen: players will start to outsource to utilise the specialist skills required in the SMSF space or they’ll start to beef up their own business if they’ve got the capabilities to do so and I think you’ll see a bit of both occurring,” SuperConcepts national sales and marketing manager Justin Saddler said.
From a Colonial First State perspective it was this specialisation that drove the move to allow SuperConcepts to take over the service previously provided by the YourChoice facility.
“When it came to the reinvestment year on year in terms of systems we just had to make a call,” Colonial First State general manager of distribution Paul Barrett said.
“Are we prepared to continue to invest heavily in that product line when our core business, which is obviously our platform business, and our investment management business are equally demanding? In SuperConcepts we found a specialist business who could do that.”
The deal will mean advisers who were using YourChoice will now receive more timely information.
“Our service reconciles the funds down to a member statements on a daily basis. From my understanding of the YourChoice product it did it more on a monthly basis,” Saddler said.
SuperConcepts will be conducting training sessions with advisers using YourChoice to make the transition to the new administration system as smooth as possible.
