Policy and Regulation

Policy and Regulation

YFYS performance test tweaks to enhance accuracy, transparency

The inclusion of administration fees and benchmarks for unlisted infrastructure and property investments headline amendments to the Your Future, Your Super draft regulation. While flaws remain in the design, most believe the performance test has been significantly upgraded.

Tahn SharpeApril 28, 2021

Policy and Regulation

YFYS performance test: Implications for ESG

Strategies that have a lower alignment to the performance test benchmarks could become high risk for trustees as they could lead to failure of the test, over certain periods, despite longer-term outperformance, Mercer's Barlow points out.

Emily BarlowMarch 31, 2021

Policy and Regulation

How funds foot penalties and remediation still not clear

Even in cases where remediation programs have begun or actions have been taken and where remediation is possible, regulators and government remain unclear about how trustees can direct funds to pay without impacting member balances, a House or Reps committee has heard.

Matthew SmithMarch 29, 2021

Policy and Regulation

Performance ‘argie-bargie’ not helping industry’s cause: Rowell

APRA will have “significant input” into the government’s proposed YFYS performance test which is not yet set in stone, APRA's Helen Rowell noted, before expressing frustration with industry interactions relating to performance measurement.

Matthew SmithFebruary 1, 2021

Policy and Regulation

AustralianSuper calls out retail fund dividend payments

The government's proposed treatment of dividend payments by retail funds as "out of scope of the best-financial interests test" doesn't reflect the policy intent of the measure or members’ best financial interests in any sense, an AustralianSuper policy submission has noted.

Matthew SmithJanuary 21, 2021

Policy and Regulation

How the performance test could be tougher

The proposed performance benchmark understates performance when it comes to adjustments for withholding tax and benchmarking credit exposure with traditional fixed income indices, meaning that relative performance is overstated, David Bell writes.

David BellJanuary 21, 2021

Policy and Regulation

Industry fund trustees to mull balance sheet creation

Whether new look profit-for-member trustees with balance sheets and new insurance arrangements leads to these funds attracting the same attention for civil penalties and remediation as for-profit funds remains to be seen.

Matthew SmithDecember 14, 2020

Policy and Regulation

Screws tighten on trustees to justify rising insurance premiums

The recently announced duty to act in members’ best financial interests increases the likelihood that trustees will come under pressure to justify rising insurance premiums, particularly in respect of MySuper members who hold default coverage.

Richard WebbDecember 9, 2020

<1of46>