POWERED BY MOMENTUM MEDIA
Including ‘financial’ in ‘best interests duty’ an overreach
The proposal to insert the word ‘financial’ into ‘best interests duty’ as part of the Your Future, Your Super bill is Parliamentary overreach and will have upfront negative financial implications for funds and beneficiaries, according to Market Forces.
In its submission to the Senate Economics Legislation Committee, the advocacy group said it strongly recommended to reject the proposal. It said including the word ‘financial’ was unnecessary as the existing duty required no further legislative clarification or amendment.
It said amending the duty:
- Was unnecessary and amounts to parliamentary overreach;
- Would have upfront negative financial implications for funds and beneficiaries;
- Offended existing trust law principles developed cautiously over time by the judiciary;
- Clashed with existing legislative requirements; and
- Was in direct contrast to the final recommendations of the Royal Commission into
- Misconduct in the Banking, Superannuation and Financial Services Industry (Royal
- Commission).
“The new duty will create legal uncertainty and is not consistent with limiting the financial burden on superannuation fund members. At the outset trustees will be obliged to incur costs for advice and compliance. For example, a suite of internal processes – those based upon the existing duty and case law that interprets it – are likely to require amendment,” the submission said.
Recommended for you
The lower outlook for inflation has set the stage for another two rate cuts over the first half of 2026, according to Westpac.
With private asset valuations emerging as a key concern for both regulators and the broader market, Apollo Global Management has called on the corporate regulator to issue clear principles on valuation practices, including guidance on the disclosures it expects from market participants.
Institutional asset owners are largely rethinking their exposure to the US, with private markets increasingly being viewed as a strategic investment allocation, new research has shown.
Australia’s corporate regulator has been told it must quickly modernise its oversight of private markets, after being caught off guard by the complexity, size, and opacity of the asset class now dominating institutional portfolios.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
92.15 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
53.24 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
43.15 3 y p.a(%)
4
DomaCom Shoreline North Coogee
36.26 3 y p.a(%)
5
GAM LSA Private Shares AU I
35.87 3 y p.a(%)
