FSC/APRA SRM set for review
The Association of Superannuation Funds of Australia (ASFA) and the Financial Services Council (FSC) will incorporate the criticism levelled by SuperRatings towards elements of the standard risk measure (SRM) the pair launched last year.
As reported in Super Review, SuperRatings said the SRM was flawed, as its research of 500 investment options indicated a wide spread of asset allocations in relation to the different risk labels.
In a statement from ASFA, chief executive Pauline Vamos pointed out that a full review and analysis of the first phase of the SRM was due later this year. The groups involved looked forward to working on the next development, a statement from ASFA said.
“The Standard Risk Measure (SRM) has been a significant step forward for the industry enabling a standard calculation and presentation to be applied to investment risk in superannuation,” the statement said.
Vamos said the SRM had been launched less than one year ago, following consultation with the Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC).
It was an important first step in providing greater transparency to consumers via the standardisation of risk labels, she said.
Super Ratings also conceded in its criticism that the FSC/ASFA SRM was the first step in achieving something the industry had been unable to initiate for 10 years.
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