Superannuation takes centre stage as ASIC sets roadmap for modern markets

Australia’s superannuation funds are becoming a defining force in shaping the nation’s capital markets, with the corporate watchdog warning that trustees now hold systemic importance on par with banks.

ASIC Commissioner Simone Constant said the agency’s work had reinforced the significance of superannuation as a market-shaping force in Australia and the importance of the supervision of superannuation trustees and platforms through its market cleanliness, financial reporting and audit, and investment disclosure activity.

“Our superannuation trustees are as systemically important as institutions like banks including in their role as stewards of other people’s money and market integrity.”

She said ASIC remains focused on how superannuation trustees are upholding their obligations to members and markets.

“We will continue to focus on their role in all the ways Australians engage with them, including market cleanliness, financial reporting, and investment disclosures,” she said.

Dr Carole Comerton-Forde added that superannuation funds require active stewardship and recognition that today’s allocation decisions will shape not only portfolio returns but also the future structure of Australian capital markets.

Australia and ASIC want to be backers, not blockers, of investment and capital, according to the corporate watchdog, which has released a roadmap to strengthen and modernise the country’s capital markets.

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The new report, Advancing Australia’s evolving capital markets: Discussion paper response, builds on insights from recent ASIC studies into private credit, expert analysis and international best practice, with input from around 100 stakeholders.

ASIC said the report outlines the path to unlocking opportunities and tackling emerging risks in the nation’s public and private markets.

“Markets aren't some abstract construct. They represent the money and investment flowing through our economy. They are literally the lifeblood that lets businesses grow and employ  
people,” chair Joe Longo said.

“We want to ensure that we're making active choices about how these markets develop - we get the markets we want.”

Longo said most developed countries were grappling with the same changes and that there were significant opportunities for Australia.

“We see enormous opportunity for public and private markets to thrive and grow together especially as they embrace new technology and innovation.”

He warned that the alternative is that technological development, or the opportunism of other countries, could see Australia become a passive recipient of changes – which may not be for the better.

Key goals outlined in the report include promoting growth in both public and private markets through innovation, new capital flows and technology adoption. Enhancing market integrity and investor confidence while supporting business access to capital is also a priority.

“This roadmap lays out the choices and future of Australia’s markets. We want our markets – private and public – to grow. That growth means stronger businesses, more jobs and a boost to our economy,” Longo said.

Longo said he had particular concerns over the rapid growth of technology and innovation.

“The growth of technologies like tokenisation [is] where ASIC and I are very concerned to ensure that we don't miss the bus on technology and innovation.

“We need to be doing whatever we can to facilitate innovation and technology in Australia.”