The prudential regulator has proposed that superannuation funds complete a stress testing program annually after finding it, along with valuation and liquidity management practices, needed improvement.
The Australian Prudential Regulation Authority (APRA) released its revised standard on investment governance practices for consultation that identified enhancement opportunities.
It said some registrable superannuation entity (RSE) licensees lacked formal stress testing processes, and in some cases, results were not incorporated into the investment decision making process.
APRA proposed that an RSE licensee’s comprehensive stress testing program must be completed at least annually, and include at a minimum:
APRA also proposed additional requirements to enhance RSE licensee valuation governance practices including:
On liquidity management plans, APRA proposed it must:
Australia’s second-largest super fund has confirmed it is expanding its presence in the UK following significant investment in the region.
A member of the super fund has approached ASIC to investigate potentially misleading or deceptive representations by UniSuper regarding the holdings of its sustainable portfolios.
The median growth fund delivered 1.9 per cent in March, adding to the “stunning” rally that has seen super funds gain 11 per cent since November.
Vanguard has affirmed its support for the current super performance test, emphasising the importance of keeping the process straightforward.
Add new comment