Regulator warns funds on spruiking short-term returns
A senior Australian Prudential Regulation Authority executive has urged superannuation funds to inject greater care into setting their default options and to be less vociferous about their short-term performances.
APRA’s general manager, Specialised Institutions, Central Region, Ramani Venkatramani told the Pensions and Investments Summit on the Gold Coast this week that superannuation funds had a tendency to harp on about their short-term performances in good times but to go silent when results turned down.
He warned that there were serious implications that could flow from such an attitude, commenting that such tactics on the part of superannuation funds were “unhelpful and potentially disastrous”.
Venkatramani also said there was a need for superannuation funds to pay closer attention to their liquidity positions, particularly with the implications that were likely to flow from the ‘Better Super’ initiatives.
He said that APRA was in discussion with a number of funds with respect to granting relief under the terms of the Superannuation Industry (Supervision) Act, but warned that so far as the regulator was concerned, affected superannuation funds would not be “getting a get out of jail free card”.
AUTHOR
Mike Taylor
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