POWERED BY MOMENTUM MEDIA
Regulators form working group to tackle super investment fraud
Federal Treasury and the country's regulators will form a panel to oversee the Government's response to a Parliamentary Joint Committee (PJC) report on the Trio Capital collapse and Richard St. John's report on financial services compensation arrangements.
The Australian Prudential Regulation Authority, the Australian Securities and Investment Commission and the Australian Taxation Office will form a Superannuation Regulators Working Group with Treasury to ensure the implementation of he Government's response, strengthen communication and strengthen the regulatory framework.
The Minister for Finance and Superannuation, Bill Shorten, said the Government agreed with the majority of the findings, including improving the communication of risks to investors and strengthening professional indemnity insurance for retail financial services providers.
Shorten said the Trio report had prompted the Government to refer investment fraud, including in the superannuation industry, to the Heads of Commonwealth Operational Law Enforcement Agencies (HOCOLEA), which includes the Australian Federal Police, the Australian Crime Commission and the Attorney General's Department.
He said the Government accepted there was no recommendation for a last-resort compensation pool for investors, and acknowledged the cost borne by the industry with regard to current regulatory burdens. Shorten said, however, that the issue might be revisited in the future.
"In the meantime, the Government encourages professional bodies to themselves consider possible solutions to the issue of under-compensation, such as the implementation of their own scheme which further protects retail clients in the event of a member's insolvency," Shorten said.
AUTHOR
Staff Writer
Money Management staff writers are writers who contribute to the website from time to time. If you would like to discuss the content contained within this article please contact us.
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(%)
