GFC super illiquidity still taking its toll
A retired couple have lost their bid to have the Superannuation Complaints Tribunal (SCT) force their superannuation fund close their accounts in an illiquid investment, seven years after the Global Financial Crisis.
A recent determination in the SCT has revealed that a husband and wife who had their account-based pension accounts frozen as a result of illiquidity issues in 2008 were still seeking to access the funds in 2013.
The case, dealt with in September last year, saw the SCT uphold the right of the superannuation fund not to release the members' funds on the basis that illiquidity remained an issue and that the members had been included in all subsequent redemption windows.
The SCT said that the trustee had explained that the accounts for both complainants were illiquid and that to pay them out would be to the detriment of other fund members.
Further, it said the trustee had also pointed out that the decision of suspending withdrawals from the fund was a decision of an external responsible entity the Australian Prudential Regulation Authority (APRA) and was beyond the control of the Trustee.
The SCT found in favour of the superannuation fund trustee because it had kept the members informed and their for withdrawal were made at a time when "the APRA exemption was extant, and the Trustee acted fairly and reasonably and within the terms of the exemption in rejecting the requests for complete transfer while continuing to release portions of the Fund that they deemed reasonable in all the circumstances".
Recommended for you
Superannuation fees have continued their multi-year decline, as fund consolidation and index investing deliver scale efficiencies for members.
Super funds demand fast passage of payday super laws, while small business advocates warn of cash flow pressures and compliance risks.
The superannuation industry could move faster on personalisation, according to MLC, and the fund has identified three core areas where it will be focusing its personalisation efforts over the next 12 months.
The Actuaries Institute has released a framework to help super funds deliver affordable guidance and advice to millions approaching retirement.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
215.17 3 y p.a(%)
2
Loftus Peak Global Disruption Fund Hedged
118.15 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
75.00 3 y p.a(%)
4
UBS Solactive Global Pure Gold Miners UCITS ETF Dis USD
61.11 3 y p.a(%)
5
Global X Ultra Long Nasdaq 100 Complex ETF
60.93 3 y p.a(%)
