Speaking at the Association of Financial Advisers (AFA) conference at the Gold Coast yesterday, Mr Prendeville said the market “dried up immediately after the Ripoll report”.
Corporate super business valuations have fallen from three times revenues to one-and-a-half times, he said.
“I’ve had transactions where corporate super has been within it and we’ve excluded it from the overall transaction. The market has completely fallen,” said Mr Prendeville.
As superannuation funds move their default members into MySuper products, corporate super business will find themselves under even more pressure, he added.
According to Tribeca Financial director Ryan Watson, OnePath is planning to transfer all funds to MySuper products by September 2014, while “the likes of MLC” won’t make the move until 1 July 2017.
Mr Watson added that he recently purchased a corporate super book for one times revenue.
Corporate super advisers are the part of the advice market most impacted by ongoing confusion over a ban on risk commissions in group life inside super.
Mr Prendeville’s comments came after assistant treasurer Arthur Sinodinos acknowledged the issue at the AFA conference on Sunday.
“There are concerns about whether advisers who provide both advice to employers about their choice of default superannuation fund, as well as advice to employees about their individual superannuation investments, are complying with the reforms,” said Mr Sinodinos.
He told delegates the changes imposed on the superannuation industry are “substantial” and that “the government is keen to hear the views of the industry”.
“However, we need to ensure that industry views are fairly balanced against the effects of conflicted remuneration, both on investors and on the viability of the industry more broadly,” said Mr Sinodinos.
