Super fund seeks renewal of liquidity relief
At least one superannuation fund that sought relief from the Australian Prudential Regulation Authority (APRA) on liquidity grounds last year has sought renewal of that relief.
APRA deputy chairman Ross Jones revealed the unprecedented relief renewal application at the Investment and Financial Services Association conference this week.
He said the regulator was currently considering the issue in circumstances where some 22 superannuation fund trustees and 47 funds had made relief applications.
Jones said this was not a large number given the size of the Australian super industry.
However, he said a number of funds had material exposures to unlisted assets and this had implications for liquidity issues.
As well, Jones said there were concerns for the regulator where the default options offered by funds carried a high proportion of unlisted assets.
He said the valuation of unlisted assets carried with it the risk of member inequities and it was concerning that the risk profile of such investments were not being appropriately captured.
Jones said it was in these circumstances that the regulator was working on revisions to its unit pricing guide.
AUTHOR
Mike Taylor
Recommended for you
Financial Services Minister, Stephen Jones, has assured the cost and time to enter the financial advice profession will soon be halved, as shadow treasurer Angus Taylor pledges to reach 30,000 advisers.
The positive results of the latest financial adviser exam have helped the advice profession reach 15,600 yet again, according to Wealth Data analysis.
Financial advice firms have told Adviser Ratings they are planning to increase their compliance spend by almost a third, including on enhancements to their cyber security which ASIC has identified as an enforcement priority.
The digital advice platform is officially launching into the financial advice sector, offering up its services to practices as a means of engaging with the next generation of clients.
