As Australia's financial services sector enters Q2 2025, regulatory pressure intensifies with ASIC's landmark report on superannuation death benefits capturing headlines. Meanwhile, product innovation accelerates with new retirement solutions from major providers, and legislative debates continue around super for housing. The industry faces mounting challenges with rising regulatory costs, increasing demands for transparency, and ongoing mergers reshaping the competitive landscape amid broader economic pressures.
AMP has introduced new geared retirement options, expanding its product suite to address retiree income needs in the current economic environment. This development follows significant changes to market-linked pensions, which are now fully commutable, offering retirees greater flexibility in managing their retirement income streams.
In the superannuation space, Pearler Super is targeting first-home buyers with the launch of a new First Home Super Saver Scheme (FHSSS) product, positioning itself in the growing market for superannuation-based housing solutions. The move comes as the Opposition doubles down on its super for housing policy, indicating this will remain a contentious area of financial product development.
Major portfolio movements include AustralianSuper divesting its stake in WiseTech, while Aware Super has completed phase one of its Project Odin, a significant technology transformation initiative aimed at enhancing member services. Meanwhile, REST has awarded a US$300 million mandate to a Miami-headquartered investment manager, diversifying its international portfolio exposure.
The superannuation sector continues to consolidate with the official merger of Qantas Super and Australian Retirement Trust, further reducing the number of standalone corporate funds in the market.
Research reveals a concerning knowledge gap among consumers, with insurance in super remaining a mystery to millions of Australians, highlighting the need for improved financial literacy initiatives. This lack of awareness contributes to challenges in claims processes and member engagement.
The retirement income gender gap continues to widen, according to new findings that show increasing disparities in comfortable retirement income between men and women. This research underscores the persistent structural challenges facing women's long-term financial security.
Financial advisers are navigating complex client needs in retirement planning, with industry experts identifying seven critical friction points in retirement advice that need addressing to improve client outcomes and adviser efficiency. These insights come as the financial planning sector continues to adapt to regulatory reforms and changing consumer expectations.
ASIC has delivered a scathing assessment of the superannuation industry's death benefit claims handling in a landmark report revealing significant deficiencies across the sector. The regulator found that not one trustee tracked end-to-end claims handling times, with some funds even charging fees to deceased members. Super trustees were accused of a disconnect on death benefit claims flaws, with Professional Planner describing the situation as a "see no evil" failure.
On the advice front, Treasurer Stephen Jones has clarified the scope of the new class of adviser and dismissed fears about DBFO collective charging, stating that "policy intent will not change" post-election.
The APRA levy is forecast to cost $243 million in FY26, though some analysis suggests this represents a forecast decrease for 2025-26. Meanwhile, the Treasury has opened a consultation on future regulatory frameworks, potentially signaling further changes for financial product providers.
Fortitude Investment Partners has acquired a majority stake in Australia's leading SMSF audit firm, marking significant movement in the SMSF services sector. This acquisition reflects ongoing consolidation and private equity interest in specialised financial services segments.
In personnel movements, a superannuation governance veteran has joined Equity Trustees' boards, bringing valuable experience as governance standards continue to evolve. Meanwhile, the Federal Court has approved a $3.54 million settlement in the Caddick auditor class action, closing one chapter in this high-profile case.
The Financial Services Union has claimed victory over AMP regarding worker surveillance practices, highlighting changing workplace dynamics in financial institutions. Separately, AFCA has expanded its support policies for employees affected by domestic violence, reflecting broader social responsibility trends within the industry.
Looking Ahead
The superannuation industry needs to consider the following future events and their potential impact: