Generic and Tailored “MySuper” Products

The draft legislation distinguishes between “generic” and “tailored” products.  A tailored “MySuper” product is a “MySuper” product which satisfies either the separately branded requirement or is issued only for employees of large employers (ie 500 employees or more). 

This distinction is important as a trustee will be licensed to issue only one product per superannuation fund which must be a generic “MySuper” product.  A trustee could be licensed to issue a generic product and one or more tailored products (or only tailored products).  However, a trustee could not issue from the same superannuation fund two or more generic “MySuper” products.

It is likely that most “MySuper” products will be of the generic variety and the only tailored products will be “MySuper” products acquired by a trustee by means of a takeover or acquisition where the trustee wishes for commercial reasons to maintain the previous branding/identity of the product.

Where a trustee is offering more than one “MySuper” product from a superannuation fund, the assets supporting each product will have to be separately identified and cannot be pooled.