Superannuation trustees have revised their policies after the Australian Securities and Investments Commission (ASIC) found a lack of oversight and control measures in relation to investment switching.
ASIC reported its surveillance of 23 trustees in October, finding significant deficiencies in their conflicts management arrangements relating to investment switching.
“ASIC expected to find robust systems in place to prevent directors and senior executives from potentially misusing price sensitive information for personal gain. However, the surveillance revealed a lack of strong oversight in this space.”
In response to the corporate regulator’s concerns, trustees committed to implement a range of changes including:
ASIC commissioner, Danielle Press, said, “Appropriate governance is integral to maintaining consumer trust and confidence in the superannuation industry. This is not something you can set and forget.
“Trustees must have conflict management arrangements in place that are continually reviewed and tested to ensure they remain appropriate.”
ASIC also completed its review of a range of transactions during the 2020 calendar year by directors, senior executives or their related parties.
This involved the switching of investment settings, changes to investment contribution allocations and superannuation contributions, and the withdrawal and roll in of superannuation monies.
Based on the evidence obtained during its surveillance, ASIC said it was satisfied no further action was warranted against any individuals in relation to the identified transactions.
Michael Lovett, who left the investment firm just three months after launching its Vanguard Super offering, has taken up a chief executive role at an Australian asset manager.
The Central Bank of Ireland has granted the approval of Equity Trustees’ exit from its Irish operations, with the transaction expected to be complete on 30 April.
Super returns continued to climb in March, raising hopes of delivering double-digit returns by June depending on the performance of this next quarter.
The dedicated super fund for emergency services and Victorian government employees is under fire for unpaid entitlements to transport employees, which could exceed $40 million.
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