The Minister for Superannuation and Corporate Law, Senator Nick Sherry, has confirmed he has asked both the Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC) to closely monitor superannuation funds for signs of stress during the current liquidity crisis.
Addressing the Conference of Major Superannuation Funds in Brisbane, Sherry said he was cognisant of speculation that if some superannuation funds turned in poor results, they might be subjected to a “run” by members.
He said that while he believed such an eventuality was unlikely, it needed to be remembered that the previous period of negative returns experienced by superannuation funds had been prior to the introduction of portability and choice of fund.
“I have spoken to both APRA and ASIC and they will be keeping an eye on the liquidity position of funds,” Sherry said.
He said that he believed this was required in the context of funds producing their member statements in June and July, some of which were likely to be negative given the current market circumstances.
