Not-for-profit superannuation funds say they are under threat because of recommendations being framed by the Federal Government’s superannuation working group, according to lobby group the Corporate Superannuation Association.

CSA represents about $60 billion of corporate superannuation assets in Australia, and says the not-for-profit funds are being “eroded” by the working group’s proposals.

CSA said changes being discussed by the working group include additional licensing and capital guarantee requirements, and would increase compliance costs and complexity. “Support for minimum capital requirements is entirely inappropriate and represents an attempt to adopt a ‘one size fits all’ approach to regulation of institutions by APRA,” it said.

“Further compliance complexity and cost would be anti-competitive, discourage current players from continuing in the current market, and increase monopolistic tendencies in the market to the advantage of the for-profit players.”