custodians

Investment Strategy

Small fund custodial fees to rise

Small superannuation funds should expect significantly higher custody costs in the next few years as custodians leave the market, a leading consultant has warned. Drew Vaughan, director of Dymond, Foulds and Vaughan, believes that eight players in the Australian market (NAB Asset Servicing, J.P. Morgan, BNP Paribas, State Street, Citigroup, Northern Trust, HSBC Bank, BNY […]
Investment Strategy

Braga: industry has climbed mountain

The superannuation industry climbed a mountain in meeting new reporting requirements in 2013 and can do the same again in 2014. David Braga, chair of the Australian Custodial Services Association, attributes the success to close co-operation between funds providers and APRA. “The initial (reporting requirements) draft that APRA issued at the end of 2012 was […]
Custody

A new playing field in custody

Citi has been in the custodian market since the mid-1980s, but it’s only in the last five years or so that it has broadened its offering to include a full range of fund administration services. According to Martin Carpenter, managing director, securities and funds services, this gives them more reasons to interact with superannuation funds. […]
Policy and Regulation

Charter group for super custodians

The charter group for the Labor government’s proposed council of superannuation custodians has begun public and private consultation with the superannuation industry, with Jeremy Cooper at the helm as chair. Cooper said the primary task for the group, appointed in May by Minister Bill Shorten, is to deliver a coherent report on the role of […]
Administration

New regime of APRA reporting

The Australian Prudential Regulation Authority (APRA) has provided its much-awaited clarification on the reporting requirements for regulated superannuation entities (RSE). While it reduces some of the burden of earlier drafts, the reporting requirements are still very significant and present some serious challenges to funds, their administrators and custodians. However, in many respects, some of the […]
CMSF

Super fraud on the rise

Payment interception by male internal staff in non-management positions represents the biggest risk of fraud for superannuation funds, KPMG’s biennial fraud survey has revealed. The profile was created from a survey of 281 financial services organisations who had detected $372.7m worth of fraud in the last two years. Three quarters of this fraud was committed […]
Custody

The great data challenge

The challenge: combine investment data with member-specific details and present the particular information in a way that satisfies the needs of regulators, internal auditors and accountants. Currently, super funds have to collect around 900 data items on a regular basis to satisfy the needs of the Australian Prudential Regulation Authority (APRA). With effect from July, […]
Custody

The incredible expanding world of custody

A central, if often overlooked feature of Australia’s super funds is that they have, for a very long time, worked closely with external service providers in their pursuit of world best practice. In relation to custody and securities services, this is a very sensible approach. The scale, geographic reach, and massive investment in technology of […]
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