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.”
Recommended for you
Self-reporting issues to ASIC could lead to a reduced charge for a fund manager but it may not exempt them from enforcement action altogether, according to ASIC chair Joe Longo.
AllianceBernstein has announced its chief investment officer and Australian equity manager Roy Maslen is to step down from the firm at the end of the year.
Pinnacle Investment Management has announced it plans to launch a new affiliate from a global equities team departing Royal London Asset Management.
Asset manager Nuveen is seeing opportunity in municipal bonds which are at their highest yields in over a decade.
