FSC and AIST release new tools for super funds
The Financial Services Council (FSC) and the Australian Institute of Superannuation Trustees (AIST) have released new guidance tools for super funds aimed at helping them prepare their operational due diligence (ODD) reports for regulatory purposes.
The ODD framework would also be expected to help super funds monitor and assess the management of operational risk controls by fund managers.
The FSC’s new questionnaire, which would cover the provision of information to third parties, would also allow fund managers to respond in an easy way to super funds’ due diligence requests, while the AIST’s FAQ document is aimed at helping fund managers understand what information they were expected to provide to super funds.
The move came in response to the recent announcement by the Australian Prudential Regulation Authority (APRA), which stressed that ODD was fundamental to managing investment risk in superannuation and represented significant benefits for the industry.
AIST’s chief executive, Eva Scheerlinck, said: “The collective approach to ODD will save the industry – and ultimately super fund members – millions of dollars and lead to better quality outcomes.”
AUTHOR
Oksana Patron
Recommended for you
Outflows from an Australian private markets fund manager have caused FUM at Pacific Current to decline by $1 billion in the last quarter.
Former RIAA chief executive Simon O’Connor has joined the ethical advisory panel at U Ethical Investors.
Financial services leaders are “all cashed up with nowhere to grow” when it comes to M&A activity, according to Deloitte, with 90 per cent saying they have strong balance sheets ready for an acquisition.
As fund managers are urged to diversify their product ranges, they are finding a faster way to do this is via an acquisition of existing firms but experts say it is not without potential culture clashes.
