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.”
AUTHOR
Oksana Patron
Recommended for you
Clime Investment Management has sold a portion of its retail client book to an external financial planning practice for $1.6 million in its latest cost-out move.
In his inaugural address as L1 Group chief executive, Julian Russell has outlined his vision and priorities for the newly-merged $16.7 billion business but warned fund outflows will continue for 18 months.
Ten Cap has announced it will launch its first active ETF on the ASX later this month, expanding retail access to its flagship Australian equities strategy.
Flows into cash and fixed income ETFs rose by 46 per cent in October with investors particularly demonstrating a preference for Australian credit ETFs as they move away from AT1 bank hybrids.
