The Association of Superannuation Funds of Australia has ordered a strategic review of its influential unit overseeing the SuperStream and Single Touch Payroll infrastructure projects.

ASFA chief executive Mary Delahunty has commissioned Amara Haqqani, a financial regulation and technology expert who until recently was chief of staff to the boss of industry fund-owned asset manager IFM Investors, to review the so-called ASFA In Practice (AIP) initiative (formerly known as ASP Services).

The review follows the defection of ASFA’s ‘chief practice officer’ Hans van Daatselaar and fellow practitioners David Delaney and Spiros Koziaris to rival association the Financial Services Council (FSC). The recruitment drive by FSC chief executive Blake Briggs reflected an escalation of tensions between the two associations, which both seek to attract members from across both the retail and profit-to-member sub-sectors.

It is understood Haqqani – who declined to comment and has previously worked for the FSC and its members including Iress and Challenger – presented her interim findings to ASFA’s board of directors on Thursday.

The review has assessed the value of the AIP initiative and the feasibility of ASFA providing these technical services going forward, following the shock exit of the AIP operating team, according to sources familiar with the process. It is expected to make recommendations about its future operations in a final report in coming months.

ASFA’s monopoly over the intellectual property in the AIP unit – which liaises with regulators and agencies, including the Australian Tax Office, on behalf of members – has long been seen as a core feature of the association’s value proposition.

However, the extent to which that IP remains within ASFA following the departure of Van Daatselaar and his team is unclear. And the technical detail of the AIP’s work is somewhat enigmatic, with some super industry figures describing it as “critical industry infrastructure” and others as “just a bunch of working groups”.

Whatever its merits, an ASFA spokesperson says the defection of the AIP workforce has not interrupted the provision of its services to members.

“ASFA informed its members several weeks ago it had begun a strategic review of its practitioners’ arm, ASFA InPractice. Implementation of regulatory change is an important element of our strategic plan, refreshed in 2024, and it requires appropriate, skilled resourcing,” the spokesperson said.

“While that review is ongoing, ASFA has provided a seamless continuation of service to AIP members.”

The spokesperson declined to release the interim report.

‘Strong financial position’

The spokesperson said pending Albanese government superannuation reforms would showcase the importance of technical practitioner services, in an indication of the association’s intention to continue providing AIP services.

Specifically, the spokesperson referenced the payday super reforms, which Financial Services Minister Daniel Mulino has listed as a priority of his tenure, and the controversial ‘division 296’ reforms doubling the tax paid by super accounts north of $3 million, which Labor took to the election but has not yet introduced to Parliament.

“ASFA looks forward to playing an important role in implementation [of these reforms] to ensure our growing member base can apply these critical changes cost effectively.”

The claim of growth in ASFA’s member ranks is telling as the spokesperson rejected any question that the review of the AIP unit reflected a threat to the association’s financial health.

“ASFA remains in a strong financial position,” the spokerson said.

The departure of major retail funds Insignia Financial and Colonial First State from the ASFA membership in 2023, first reported by Investment Magazine, presented what was seen as a commercial challenge to the association, following net losses sustained in most of the last five years.

In the past financial year, ASFA has added Australian Food Super to its membership, alongside service providers including Adobe, Pathzero, Nuix and Spaceship, according to archived web pages analysed by internet tool Wayback Machine.

However, those gains were offset by the closure of Qantas Super and Commonwealth Bank Group Super (both of whom were acquired by Australian Retirement Trust), Bendigo Super (acquired by asset manager BetaShares) and the Manildra Flour Mills Retirement Fund, according to the same analysis.

Meanwhile, the FSC has established a so-called Superannuation Practitioners Group, led by Van Daatselaar, to provide technical services to both members and non-members.