POWERED BY MOMENTUM MEDIA
Necessary or just more regulation?
The Federal Government needs to produce a regulatory impact statement on its latest round of legislative changes including the annual outcomes test because it risks imposing a fresh layer of compliance, according to the Association of Superannuation Funds Australia (ASFA).
Not only has ASFA complained about the regulatory impacts of the legislative changes but the short timeframe the industry has been given to respond.
“The superannuation system requires a strong regulatory framework and regulators should have appropriate powers and instruments to ensure that the system is stable, efficient and delivers on its objectives,” the ASFA submission said. “However, the system is already subject to significant regulatory obligations and oversight and there must be a clear justification for extensions such as those proposed in the bill.”
The submission said that such justifications should include an assessment of the impacts and costs of additional obligations on superannuation fund operations and member outcomes.
“Given the bill will have a major regulatory impact on both industry and consumers if legislated, a regulation impact statement is essential to demonstrate due consideration of these elements,” it said.
The submission said ASFA was particularly concerned about the impact of a number of the proposals on the regulatory and reporting burden for superannuation funds and, in particular, the operation of the annual outcomes test and its potential to add a fresh layer of compliance and reporting for trustees.
It also pointed to the impact of the logistics of the annual members’ meeting on superannuation fund costs and resources and whether the proposed director penalties had adequate protections together with the breadth of the proposed APRA directions powers and whether they could be more precise.
Recommended for you
Vanguard Super has reported strong returns across most of its investment options, attributed to a “low-cost, index-based approach”.
The fund has achieved double-digit returns amid market volatility, reinforcing the value of long-term investment strategies for its members.
Australian super funds notched a third consecutive year of strong returns, with the median balanced option delivering an estimated 10.1 per cent over the 2024-25 financial year, but an economist has warned that the rally may be harder to sustain as key risks gather pace.
AustralianSuper has reported a 9.52 per cent return for its Balanced super option for the 2024–25 financial year, as markets delivered another year of strong performance despite the complex investing environment.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom 465 Calder Road Calder
99.46 3 y p.a(%)
2
DomaCom DFS Mortgage
95.46 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
78.55 3 y p.a(%)
4
BetaShares Crypto Innovators ETF
50.39 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
47.50 3 y p.a(%)
