POWERED BY MOMENTUM MEDIA
ASFA calls for offshoring clarity
Offshoring of investment management decisions should be treated differently to other offshoring arrangements, the Association of Superannuation Funds of Australia (ASFA) has said in a submission to Treasury.
Responding to the second set of draft prudential standards for superannuation, ASFA said it understood the requirement for trustees to consult with the Australian Prudential Regulation Authority (APRA) with respect to other offshoring arrangements such as administration, but said trustees needed the ability to switch investments quickly.
"Prior consultation with APRA in each and every instance would be unduly onerous for RSA licensees and a significant impediment to them being able to invest effectively and efficiently," it said.
ASFA said it should be adequate that APRA review a super fund's risk management framework with respect to off-shoring investment management agreements prior to its first offshore investment, but not with each and every decision.
The industry organisation also sought clarification on the process around consultations, and also with regard to reporting offshoring arrangements.
ASFA said members had also reported apparent discrepancies with regards to APRA's view of a proposed outsourcing arrangement as a material business activity.
"In one example, advice from ASFA members reveals a difference in approach between APRA's Melbourne, Brisbane and Sydney offices as to whether the selection of a Gateway service provider is considered to be the outsourcing of a material business activity," it said.
It requested APRA clarify what constitutes a material business activity.
AUTHOR
Staff Writer
Money Management staff writers are writers who contribute to the website from time to time. If you would like to discuss the content contained within this article please contact us.
Recommended for you
Jim Chalmers has defended changes to the Future Fund’s mandate, referring to himself as a “big supporter” of the sovereign wealth fund, amid fierce opposition from the Coalition, which has pledged to reverse any changes if it wins next year’s election.
In a new review of the country’s largest fund, a research house says it’s well placed to deliver attractive returns despite challenges.
Chant West analysis suggests super could be well placed to deliver a double-digit result by the end of the calendar year.
Specific valuation decisions made by the $88 billion fund at the beginning of the pandemic were “not adequate for the deteriorating market conditions”, according to the prudential regulator.
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
31.56 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.06 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.81 3 y p.a(%)
