ARdata Articles

Australian Financial Product News Update: April 10-30, 2025

Written by ARdata | Apr 30, 2025 5:27:21 AM

Market Overview: Super Sector Navigates Election Uncertainty and Cyber Challenges

 

The Australian superannuation landscape has become a central battleground in the upcoming federal election, with competing policy visions creating uncertainty for the industry. Corporate leaders have entered the fray over the proposed $3 million super tax, while speculation mounts about who might replace Stephen Jones as the Minister for Financial Services. Industry stakeholders are calling for bipartisan policy approaches to provide certainty beyond the election cycle. Against this political backdrop, AustralianSuper revealed that recent cyberattacks resulted in losses totalling $750,000, highlighting the growing imperative for robust security frameworks regardless of electoral outcomes.

 

Product Innovation & Market Movements

 

The retirement income space is seeing significant innovation, with NGS Super launching a lifetime income product in partnership with Challenger, addressing growing member demand for secure retirement income streams. This follows industry observations that the Design and Distribution Obligations (DDO) Tranche 2 is filling crucial gaps in super fund retirement guidance and advice frameworks.

In the investment space, digital broker Webull has expanded its offering to include SMSF accounts, responding to growing demand from self-directed investors. Research indicates that ETFs are gaining popularity among the SMSF crowd, reflecting broader trends toward low-cost and transparent investment options. With election uncertainty looming, super funds report that diversification strategies are helping to blunt potential Trump tariff impacts, demonstrating how funds are preparing for various geopolitical scenarios.

Sustainability remains a key focus, with Rest Super backing a $300 million solar farm and battery project, while AIA and AustralianSuper have made significant environmental commitments. Aware Super has demonstrated confidence in infrastructure, spending $1.6 billion on Australia's largest intermodal facility.

 

Client Needs & Research

 

Research has identified three key factors for attracting and retaining super fund members, emphasising the importance of personalised engagement strategies. Meanwhile, concerning findings reveal that financial illiteracy is dragging down retirement confidence among Australians, highlighting a persistent educational gap.

Gender inequality persists in retirement planning, with new data showing that unpaid household work affects women's careers and mental health, ultimately impacting their superannuation balances. Industry super funds maintain their strong reputation among consumers, with UniSuper continuing its winning streak at the recent Roy Morgan Customer Satisfaction Awards.

The controversial topic of superannuation guarantee (SG) inclusion in insurance is gaining traction, with industry funds urging SG inclusion in the last resort compensation scheme, while acknowledging that payday super will alleviate but not resolve unpaid super issues. Election positioning is evident as super lobbies welcome bipartisan support to combat financial abuse, and industry funds seek a seat at the payday super table to influence the implementation of this key election promise.

 

Regulatory Landscape

 

ASIC has intensified its supervisory approach, proposing to name licensees who breach regulations and to disclose complaint data publicly. This initiative forms part of a broader consultation on increasing the visibility of firms' compliance records. The regulator has also announced plans to launch a new portal for Australian Financial Services Licensees, streamlining regulatory interactions. With the election approaching, industry speculation is mounting about whether Dr. Daniel Mulino might be the ALP's next choice for financial services, potentially influencing future regulatory direction.

Enforcement actions continue, with one financial services provider penalised $11 million over "cookie-cutter" advice and conflicted bonus payments. The case specifically involved SMSF property advice, highlighting ASIC's ongoing focus on property investments within self-managed funds.

Industry association SIAA has rejected proposed SOA reforms, instead calling for changes to the code of ethics, while AFCA has highlighted concerning patterns of delays in superannuation complaint resolution.

 

Industry Movements

 

The corporate landscape continues to evolve, with Future Group positioning its super offerings for growth and confirming more mergers ahead. Centrepoint Alliance has acquired Brighter Super's comprehensive advice book, a move expected to give a brighter future for fund members.

In personnel news, industry veteran Russell Garrett has joined Australian Ethical as a non-executive director, while Aware Super has named a new portfolio and construction lead. Several analyst promotions were announced across TCorp, Future Fund, CareSuper, Fidante, and First Sentier.

 

Looking Ahead & Key Takeaways

 

  • Election & Regulatory Milestones:
    • The Federal election will be held over the coming week. ASIC's new portal for AFS licensees is expected to launch in Q3 2025. ASIC's consultation on breach reporting transparency closes on May 15. The industry is calling for a bipartisan commitment to rule out the taxation of unrealised gains.
  • Short-term (0-3 months):
    • Super funds should prioritise cybersecurity reviews following recent high-profile breaches
    • Product providers should prepare scenario planning for alternative election outcomes, particularly regarding the $3 million super tax, which remains contentious
    • Advisers should monitor election promises regarding financial advice reforms, with SOA reform proposals currently facing industry pushback
  • Medium-term (3-12 months):