POWERED BY MOMENTUM MEDIA
PI availability adequate – APRA
The Australian Prudential Regulation Authority (APRA) is satisfied with both the availability and pricing of professional indemnity (PI) insurance for superannuation trustees.
The regulator has issued an information paper reporting the findings of a survey conducted last year, which polled insurance brokers on the availability and level of coverage of PI insurance for Registrable Superannuation Entity (RSE) licensees.
An acceptable level of PI insurance is one requirement for RSE licensees, prescribed by the Superannuation Industry (Supervision) Act 1993. APRA also requires licensees to hold sufficient coverage for trustee and fund operations.
“Licensees are expected to be able to demonstrate that the level and terms of insurance cover are prudent and reasonable to meet their obligations and to ensure they are acting in the best interests of members,” said APRA deputy chairman Ross Jones. “In APRA’s view, the level and terms of insurance … should reflect the nature, scale and complexity of [their] operations.”
APRA found that the spike in PI premiums experienced after the collapse of HIH Insurance in 2001 has largely ended, with premiums trending downwards since then.
Recommended for you
The future of superannuation policy remains uncertain, with further reforms potentially on the horizon as the Albanese government seeks to curb the use of superannuation as a bequest vehicle.
Superannuation funds will have two options for charging fees for the advice provided by the new class of adviser.
The proposed reforms have been described as a key step towards delivering better products and retirement experiences for members, with many noting financial advice remains the “urgent missing piece” of the puzzle.
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.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
90.28 3 y p.a(%)
2
GAM LSA Private Shares AU I
37.08 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.44 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.12 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
28.28 3 y p.a(%)
