POWERED BY MOMENTUM MEDIA
Member outcomes centre in 2018 super regulatory landscape
Continuing regulatory focus on outcomes for members will be dominating the superannuation industry in 2018 and will lead to further consolidation of super funds, according to consulting service QMV.
Continued political and public interest in conduct across the financial service sector would be a key theme for 2018, and one part of the scrutiny toward regulation that would shape movements within the make-up of the superannuation space.
“Continued enforcement of conduct related compliance obligations is likely to contribute to an environment where there are lower appetites for reputational and compliance risks,” said QMV principal consultant, legal and risk, Jonathan Steffanoni.
“Aside from the prospect of a Royal Commission directed at financial institutions, superannuation funds will need to ensure standards of conduct in claims handling and management remain compliant and aligned with community expectations of the financial sector.”
Steffanoni said funds would need to up their focus on recommendations that could be early signals of reforms for default superannuation models, and the way in which funds deal with the sector. Similarly, data availability and use and transparency would be key to how major industry players responded to regulatory change.
“While Open Banking may provide some competitive opportunities for integration in the short term, the prospect of louder calls for Open Super or Open Pensions should not be far from the top of the strategic planning agenda for superannuation fund trustees,” he said.
“The focus for most of the industry is likely to be directed towards ensuring that activities and investments contribute to member value and outcomes.”
At the start of the year, Steffanoni said all eyes in the industry would be on the Productivity Commission findings from the third phase of the Inquiry into Competition and Efficiency in the Superannuation System.
AUTHOR
Hope William-Smith
Hope is a journalist with Super Review. She has previously worked across a range of business and lifestyle titles. Hope has a degree in International Relations and joined the Super Review team after completing a Masters in Law, Media and Journalism.
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(%)
