POWERED BY MOMENTUM MEDIA
APRA imposes best interests licence condition on CFSIL
The Australian Prudential Regulation Authority (APRA) has imposed a new registrable superannuation entity (RSE) licence condition on Colonial First State Investments Limited (CFSIL) to ensure members’ best interests are prioritised in its decision-making.
The condition follows an investigation by the Hayne Royal Commission that formed a view that CFSIL’s decisions not to bring the migration of certain cohorts of its FirstChoice members into MySuper products forward from just prior to the legal deadline, and to grandfather certain fee arrangements, may not have been in its members’ best interests.
APRA concluded that CFSIL did not breach the Superannuation Industry (Supervision) Act 1993 but raised concerns on CFSIL’s internal processes for demonstrating how members’ best interests were considered and prioritised.
The condition required CFSIL to record how it considers members’ best interests and members’ priority covenants when making decisions that materially affect their interests.
“This measure will improve CFSIL’s practices and also ensure APRA is better able to assess whether members’ best interests are being sufficiently considered and prioritised by CFSIL in future,” APRA said.
APRA noted that CFSIL did not oppose the application of the new condition, which comes into effect immediately.
CFSIL’s grandfathering of certain fee arrangements was one of 12 cases that Commissioner Kenneth Hayne referred to APRA for further investigation in handing down the Royal Commission’s Final Report last year.
Recommended for you
Governor Bullock took a more hawkish stance on Tuesday, raising concerns over Trump’s escalating tariffs, which sent economists in different directions with their predictions.
Equity Trustees has announced the appointment of Jocelyn Furlan to the Superannuation Limited (ETSL) and HTFS Nominees Pty Ltd (HTFS) boards, which have oversight of one of the companies’ fastest growing trustee services.
Following growing criticism of the superannuation industry’s influence on capital markets and its increasing exposure to private assets, as well as regulators’ concerns about potential risks to financial stability, ASFA has released new research pushing back on these narratives.
A US-based infrastructure specialist has welcomed the $93 billion fund as a cornerstone investor.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Global X GlobalX FANG+ ETF
33.51 3 y p.a(%)
2
Spire Oaktree Opportunities XI Second Close
32.68 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.62 3 y p.a(%)
4
Spire Oaktree Opportunities XI First Close USD
31.36 3 y p.a(%)
5
Fidante Credit Suisse Global Private Equity
29.60 3 y p.a(%)
