Then Minister for Superannuation and Corporate Law Senator Nick Sherry has released a paper for industry consultation on the regulation and disclosure of equity derivatives.
The launch of the paper, entitled ‘Improving Australia's Framework for Disclosure of Equity Derivative Products’, follows an earlier pledge by Prime Minister Kevin Rudd to boost the transparency of equity derivative trading and disclosure.
“There has been market concern that there is a lack of appropriate disclosure framework covering equity derivatives, which has reduced transparency of ownership changes and takeover moves.
“This has reduced the ability of companies to know who their effective owners are, and enabled hedge funds to outflank traditional institutional investors by using economic interests to influence companies,” Sherry said.
The proposals in the paper will take place in “close conjunction with international partners”, Sherry added.
“This will also ensure that Australia's regulatory regime does not impose an undue burden on market participants or inappropriate barriers to foreign equity investment in the Australian market.”
The research house has offered a silver lining after super fund returns saw the end of a five-month streak last month.
A survey of almost 6,000 fund members has identified weakening retirement confidence, particularly among those under 55 years of age, signalling an opportunity for super funds to better engage with members on their retirement journey.
The funds have confirmed the signing of a successor fund transfer deed, moving closer to creating a new $29 billion entity.
A number of measures, including super on Paid Parental Leave, funding to recover unpaid super, and frameworks to encourage investment in the energy transition, have been welcomed by the superannuation industry.
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