A retirement licensing regime would ensure a system of fit-for-purpose funds motivated to meet their obligations under the Retirement Income Covenant. Policymakers, regulators and those funds leading the way on retirement must think at a system level by considering what happens to members of those funds that are lagging.
By comprehensively reviewing the existing universe of retirement income solutions and analysing the trade‑offs inherent in various product designs, we were able to identify five key attributes that are specific, mutually exclusive, exhaustive and that we believe fully characterise the in‑retirement experience.
The challenge created by the Retirement Income Covenant invites a reconsideration of the existing conventions of superannuation fund governance. Trustees need governance arrangements that support them in discerning retiring members’ interests, balancing them and remaining loyal to them, while regulators could acknowledge some problems are better addressed collectively.
The Albanese government has launched a pre-election crackdown on poor member services in the super sector, especially delays in processing death benefit and insurance claims, as it looks to introduce new “mandatory and enforceable” industry standards. The rules, which followed regulatory enforcement action against Cbus and AustralianSuper’s self-initiated claims compensation scheme, was described by consumer advocates as a “massive win”.
Superannuation funds should welcome the introduction of the new Financial Accountability Regime (FAR) in March as a chance to embed a culture of accountability through their organisations. Communicating the benefits throughout the organisation is key to avoid creating a climate of fear as the new rules come in.
Insignia Financial has promoted Damien O’Donnell to chief technology officer.
The Financial Accountability Regime for super fund executives kicks off in mid-March, and despite suggestions it is too onerous or could deter people wanting to work in the sector, ASIC Commissioner Kate O’Rourke tells Investment Magazine super funds have had plenty of time to get ready. She says funds have had a good chance to see how it works in the banking sector and should be ready to comply from day one.
Vision Super chief investment officer and deputy CEO Michael Wyrsch will head up the investment operations after its merger with Active Super. Key roles are also being filled at other funds, as merger activity continues to reshape the profile of the superannuation sector.
REST has appointed Gideon Lipman to the newly created chief of staff role, reporting to CEO Vicki Doyle.
There is one investment area where Insignia’s $180 billion super arm has not lost money for the past 17 years, which is what it calls the insurance-related investments. The alternatives strategy is gaining popularity among asset owners due to its diversification benefit, but Insignia’s super and asset management investment chief Dan Farmer warns it is a space where investors can suffer if they “stumble in without doing the homework”.
Private equity firm Bain Capital has once again matched rival suitor CC Capital’s bid for Insignia Financial in a month-long takeover tug-of-war that is showing little signs of cooling down. The announcement coincided with a quarterly earnings update that saw the PE investors’ target report a loss of $424 million in advised super assets.
Listed technology group Iress will sell its superannuation administration business to Apex Group, a company that offers a range of financial services and solutions.
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Investment Magazine provides in-depth, monthly analysis of trends and developments for all the businesses in which superannuation funds engage‚ including asset allocation, investment manager selection, custody and fund accounting, member administration, group insurance and compliance.
We acknowledge the Traditional Custodians of this land upon which Conexus Financial sits, the Cadigal of the Eora Nation. We recognise their continuing connection and unique cultural and spiritual relationships to the land, waters and community. We pay our deepest respects to them and their culture, and to Elders both past and present.
