Legislation to encourage the development of a retail corporate bond market would be unlikely to significantly increase the depth and liquidity of the domestic Australian market, according to the Association of Superannuation Funds of Australia (ASFA).
The industry association welcomed the Government's amendments to the Corporations Act, which are aimed at improving the trading of retail corporate bonds in Australia.
The reforms would streamline the corporate bond investments process with only a marginal impact on the depth and liquidity of the domestic market, according to ASFA
As the wholesale market was a conduit for super funds, and the additional retail issuance to Australian investors would be marginal compared to the overall size of the wholesale markets, the reforms were unlikely to affect super funds, ASFA said.
Additionally, it welcomed the Government's intention to define the terms ‘financial planner' and ‘financial adviser' as supporting the Future of Financial Advice reforms in empowering consumers to identify "genuine providers of financial product advice".
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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