Scrutiny urged of fintech on ESG grounds
Superannuation fund investors have been told that recent financial services technology developments such as blockchain need to be closely scrutinised on responsible investment grounds.
United Nations Principles for Responsible Investment (UNPRI) managing director, Fiona Reynolds pointed to fintech advancements as requiring scrutiny on the basis of concerns around cyber security.
She said robotics also needed to be scrutinised.
However, Reynolds, a former Australian Institute of Superannuation Trustees chief executive, said executive remuneration remained at the forefront with respect to institutional investment concern, and the need to link executive pay to environmentally sustainable guidelines.
She said there was also significant support for the adoption of pay ratio regimes under which the salary packages of CEOs were weighed against those of other executives within a firm which were in turn weighed against the salaries of ordinary staff within a company.
Reynolds said it was all about disclosure and superannuation fund investors were in a position to press these issues.
Recommended for you
Financial Services Council chief executive, Blake Briggs, is urging Minister for Financial Services, Stephen Jones, to take advantage of the QAR opportunity to reduce regulatory duplication and ensure advice is affordable.
Former chair of the House of Representatives’ Standing Economics Committee, Tim Wilson, is planning a return to politics after losing his seat in the 2022 federal election.
Morningstar is going to offer research ratings of funds in the $3.5 trillion superannuation sector for the first time in response to demand from financial advisers.
Treasurer Jim Chalmers has opened a consultation into the design of the annual superannuation performance test, canvassing views on a range of reform options.
