The introduction of MySuper in 2013, with a start date of 1 January 2014, caused consternation among the large superannuation providers, both bank-owned and industry funds. The ramifications are yet to be fully understood and dealt with by the funds and the prudential regulator alike, if evidence from yesterday's hearings at the royal commission into misconduct in the banking, superannuation and financial services industry is typical of the sector.The bank-owned retail funds were shown to have to delayed transferring as many of their default members into MySuper products as that meant the end of commissions for their advisors, while industry funds were questioned over their duchessing of employer groups and other industry contacts to ensure they retained existing default fund status, the royal commission heard in Melbourne yesterday.Linda Elkins, executive general manager of Colonial First State, in her evidence, painted a picture of CFS as a complex business unable to identify all the tens of thousands of its component funds' members who had "accrued default amounts" that should have been moved into a no-frills MySuper product by 1 July 2014 - a process that super funds were warned about from 2012Elkins conceded that some customers should have been moved into a complying MySuper fund by 1 January 2014, telling the commission that a large number of ADAs were not identified until March of that year, and that there were no obvious plans to deal with a breach of the new rules.The problem this posed - and one probable cause for the delay - as counsel assisting Michael Hodge suggested, was that once the ADAs were moved over to a MySuper product commissions to advisors would cease. He asked if this was a matter of concern to Colonial First State, "and that was a factor that Colonial First State took into account in deciding when to transition ADAs over to the MySuper product?""We didn't ever discuss the commissions, but that is a consequence, yes," Elkins responded.The MySuper product that was eventually selected for members who had not made a valid direction to stay in a Colonial fund was Commonwealth Essential Super, described by Elkins as "a simple superannuation product, MySuper product, … made available through Commonwealth Bank branches at the time." It was a separate fund, established in order to house that product under a revenue sharing distribution agreement with the retail bank.Initially, 13,000 CFS fund members were thought to be affected, and this a breach of the new SIS legislation was treated favourably by APRA.Hodge showed Elkins a letter from the prudential regulator in April 2014, which had this to say about the remedy: "APRA's understanding is that under this plan rectification for all affected members will be complete by early September 2014 as members will either have given investment direction indicating they wish to stay in FirstChoice Personal Super or they will have been moved to a MySuper product."Hodge referred Elkins to an email exchange between Colonial First State and APRA, sent 13 months later, indicating it was the 13th