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.
BlackRock boss Larry Fink praised Australia’s superannuation system in his annual chairman’s letter.
The prudential regulator has announced it will publish new expenditure data of superannuation funds, providing details on expenses like advice, director remuneration, and payments to unions.
Affirming the UK’s growing attractiveness as an investment destination, a number of Australia’s largest investors recently joined the UK Foreign Secretary for an exclusive briefing in Canberra to discuss further opportunities for trade and growth.
The specialist superannuation law advisory practice is set to wind up, with managing partner Jonathan Steffanoni planning to bring a new offering to market.
Add new comment