POWERED BY MOMENTUM MEDIA
Super regulation to focus on consumers
Following a 2018 full of upheaval and policy changes taking effect, 2019 looks to be another year of technical and regulatory change for the superannuation industry, of which consumers look set to be a focus.
QMV principal consultant, Wendy Colaço, said the combined effect of member outcomes assessments, consumer data rights, financial product design and distribution obligations, and of course Royal Commission recommendations, would see members prioritised in regulatory and business decisions.
The Australian Prudential Regulation Authority’s (APRA’s) new prudential standard and guidance on strategic planning and member outcomes was one example of this, as were proposed product obligations laws.
Unsurprisingly given the regulatory breaches uncovered by the Royal Commission last year, Colaço also warned that there would be a continued heavy focus on remediation of breaches this year, as the industry sees a “more assertive regulatory posture” following the Commission.
The consultant also suggested that the Royal Commission would lead to greater asymmetric competition in the industry, as disruptive innovators sought to capitalise on opportunities cropping up in supply chains or consumer interfaces, rather than through direct competition.
“New entrants from the tech sector will develop to meet the demands of an emerging demographic, such as new payments platforms plugging holes in a disjointed industry but answering the needs of a community demanding immediate service and nimble products,” Colaço said.
“It is likely we will see a flood of new market entrants looking to capitalise on market opportunities resulting from the reputational impacts of the royal commission through using modern technologies, particularly in the banking, financial planning, and insurance sectors.”
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(%)
