Is your fund looking to establish Direct Investment Options (DIOs) capability?

Mar 17, 2015 | Resources

Woman on Phone

Research shows that one in five members are likely to move to a self-managed super fund (SMSF) in the next five years. However, six out of 10 of the members who expressed an interest in moving to an SMSF said the offer of direct investment capability would make them reconsider leaving1.

IQ Group has worked with two of the largest Superannuation administrators and funds to deliver DIOs capability for their members. We have walked the journey from strategy, to product design, to execution, and we know that the only way to get a DIO product off the ground is with detailed planning and high visibility across the layers of complexity.

Key considerations in planning and delivery of DIOs

Below are just some of the key considerations for planning and delivering an MDI product:

  • DIOs represent significant product change and are pervasive throughout business operations. DIO is not a bolt-on.
  • Consider how you will roll out product changes – will you do accumulation first, and pension second, or big bang?
  • Expect to spend most time and effort for Product Design on Fund Tax and Pensions
    (their commencement and cessation).
  • You will need a range of policies specific to administration
    (market halt/suspension, corporate actions, forced selling, cooling off/family law, and death benefits/reversion).
  • Can your current administrator provide this capability, or is an external provider needed?
  • You will need client-centric administration capabilities to support this for both accumulation and pensions.

How your organisation can benefit from IQ Group

IQ Group has built an independent DIOs practice that can assist funds through the full lifecycle of product design through to implementation. We have developed significant intellectual capital and hands on experience in delivering DIOs across both Trustees and Administrators. IQ Group can deliver the following:

  • Strategy / Business Case
  • Product Design
  • Solution Design
  • Vendor Selection
  • Implementation

Resources

Please click here for news articles relating to Member Direct Investment Option and IQ Group.