POWERED BY MOMENTUM MEDIA
FSC urges consultation around the ‘unprecedented’
The Federal Government’s Bank Executive Accountability Regime is without precedent and the Government will need to be careful to avoid unintended consequences, according to the Financial Services Council (FSC).
In a column to be published in the upcoming print edition of Super Review, the FSC’s senior policy manager, Blake Briggs reinforced calls by the organisation’s chief executive, Sally Loane, for significant industry consultation around the new regime.
Briggs pointed to the detail of the proposed – a requirement for a minimum of 40 per cent of an approved deposit-taking Institution (ADI) executive’s variable remuneration – and 60 per cent for certain executives such as the CEO – to be deferred for a minimum period of four years to ensure executives are more accountable; and stronger powers for APRA to require ADIs to review and adjust their remuneration policies when the Australian Prudential Regulation Authority (APRA) believes such policies are producing inappropriate outcomes.
He also pointed out that the remuneration measures would apply to non-ADI businesses within an ADI group structure, including superannuation funds and life insurance businesses.
“Stand-alone superannuation funds not in a group structure will not be captured by the package, with the exception of APRA’s increased powers to disqualify directors and executives,” Briggs said.
“The FSC has urged the Government to consult with industry before implementation of the Bank Executive Accountability Regime. These powers are without precedent and unintended consequences must be carefully avoided.”
Recommended for you
APRA’s latest data has revealed that superannuation funds spent $1.3 billion on advice fees, with the vast majority sent to external financial advisers.
Cbus Super has unveiled Advice Essentials Plus, a new service offering affordable financial advice to both members and their partners.
The fund has launched a new tool to help deliver personalised financial education and digital personal advice to eligible members.
The QAR lead reviewer has told a Senate committee that the government’s demands of super funds conflict with their original purpose.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
32.57 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
32.09 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
27.42 3 y p.a(%)
lol at the FSC it really just does go to the show who lines their pockets..