IOOF follows in ANZ’s footsteps

There is a constant need to keep up with peers within the superannuation industry.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Diversified wealth manager IOOF (ASX: IFL) has received a MySuper license from the Australian Prudential Regulation Authority (APRA) for its IOOF Balanced Investor Trust product, according to a report published on the Financial Standard website. The approved MySuper product will become the default option, replacing IOOF’s previous default option, in January 2014.

The granting of approval to IOOF by APRA comes just days after the ANZ Bank (ASX: ANZ), as reported here, announced that its ANZ Smart Choice Super product had been approved as MySuper compliant. With all employers forced from 1 January 2014 to pay default superannuation contributions into an authorised MySuper product, the clock is ticking for super funds to meet the deadline. With around 75 super funds now authorised with MySuper it appears there is still a number of superannuation providers yet to receive approval.

In other financial service industry news, AMP’s (ASX: AMP) funds management arm AMP Capital has emerged with an 8.4% stake in New Zealand-based insurer Tower (ASX: TWR) following the sell down by Guinness Peat Group (ASX: GPG). Guiness Peat Group has been a long-term cornerstone shareholder in the NZ-based insurer however following its decision to sell investments and return funds to shareholders, so it was a matter of when, not if, the stake in Tower would be divested.

Foolish takeaway

The superannuation industry and particularly the self-managed superannuation fund space are facing a number of regulatory hurdles at present. In particular, SMSFs are coming under scrutiny for their investment in property assets that some argue is unduly driving up property prices. Other critics are arguing SMSF property investments are often simply  a means of tax avoidance.

Given its size and importance, the superannuation industry is only going to face more scrutiny in the future. Large financial service providers that have the scope to deal with the regulatory environment and the means to leverage the costs across a wide base are best placed to handle the regulatory environment and best placed to enjoy the tailwind from the future increase in contribution levels.

Providing a nest egg for your retirement is vitally important in a world where the cost of living keeps rising. Our #1 dividend-paying stock can help. Discover The Motley Fool’s favourite income idea for 2013-2014 in our brand-new, FREE research report, including a full investment analysis! Simply click here for your FREE copy of “The Motley Fool’s Top Dividend Stock for 2013-2014.”

More reading


Motley Fool contributor Tim McArthur does not own shares in any of the companies mentioned in this article.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

asx share price competitions represented by businessmen arm wrestling
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

person reading news on mobile phone
⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »