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.”