Govt keeping eye on super fund liquidity
The Minister for Superannuation and Corporate Law, Senator Nick Sherry, has confirmed he has asked both the Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC) to closely monitor superannuation funds for signs of stress during the current liquidity crisis.
Addressing the Conference of Major Superannuation Funds in Brisbane, Sherry said he was cognisant of speculation that if some superannuation funds turned in poor results, they might be subjected to a “run” by members.
He said that while he believed such an eventuality was unlikely, it needed to be remembered that the previous period of negative returns experienced by superannuation funds had been prior to the introduction of portability and choice of fund.
“I have spoken to both APRA and ASIC and they will be keeping an eye on the liquidity position of funds,” Sherry said.
He said that he believed this was required in the context of funds producing their member statements in June and July, some of which were likely to be negative given the current market circumstances.
AUTHOR
Mike Taylor
Recommended for you
Net cash flow on AMP’s platforms saw a substantial jump in the last quarter to $740 million, while its new digital advice offering boosted flows to superannuation and investment.
Insignia Financial has provided an update on the status of its private equity bidders as an initial six-week due diligence period comes to an end.
A judge has detailed how individuals lent as much as $1.1 million each to former financial adviser Anthony Del Vecchio, only learning when they contacted his employer that nothing had ever been invested.
Having rejected the possibility of an IPO, Mason Stevens’ CEO details why the wealth platform went down the PE route and how it intends to accelerate its growth ambitions in financial advice.
