POWERED BY MOMENTUM MEDIA
Markets and reputation biggest super risks
Market disruption, reputation damage, and financial performance are the main risks to the superannuation and investment industry, according to a survey.
The survey by Riskwise Professionals and SUPER Recruiters found these risks were followed by cybercrime, and regulations.
SUPER Recruiters principal, Guy McKanna said: “Reputation damage is often typically caused through front line staff not having clear unambiguous instructions, training, and understanding of product disclosure requirements and superannuation rules”.
“This is particularly relevant given the high profile cases of inappropriate advice ascribed to predominantly bank-owned or franchised distribution channels,” he said.
“As management should know well and truly by now, embedding a proactive culture of risk goes a long way to lifting the game. Improving an organisation’s culture of appropriate selling practices should be high on their agenda.”
The survey also found respondents thought that engaging with external consultants would be the best way to prepare for risks.
“The strong response for accessing external expertise would suggest that organisations are not solely comfortable with their current level of risk preparedness and/or the frameworks under which they operate,” McKanna said.
Respondents also said that building stronger controls into investment processes, in particular automating processing technology, would help better identify risks.
Recommended for you
In its pre-election policy document, the FSC highlighted 15 priority reforms, with superannuation featuring prominently, urging both major parties to avoid changing super taxes without a comprehensive tax review.
The Grattan Institute has labelled the Australian super system as “too complicated” and has proposed a three-pronged reform strategy to simplify superannuation in retirement.
Super funds delivered a strong 2024 result, with the median growth fund returning 11.4 per cent, driven by strong international sharemarket performance, new data has shown.
Australian Ethical has seen FUM growth of 27 per cent in the financial year to date.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
36.43 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
35.08 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.72 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
29.60 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
27.64 3 y p.a(%)
