This week, the Australian superannuation news has been dominated by regulatory interventions, with APRA and ASIC taking decisive actions against major funds. Alongside this, superannuation funds face mounting pressure to innovate while maintaining governance standards, and concerns about gender disparities in retirement confidence have emerged. These developments unfold against persistent inflation challenges and technology-driven transformation across the sector.
Stockspot has launched Australia's first ETF-only superannuation fund, marking a significant innovation in the increasingly competitive superannuation market. This move comes as ETF markets experienced a slight dip, with notable bright spots emerging in specific sectors.
In the platform space, retail superannuation funds continue to pull ahead of defined benefit funds in performance and innovation. In contrast, the influence of platforms on superannuation continues to grow, reshaping the competitive landscape.
UniSuper has adjusted its environmental investment option, moderating its previously volatile approach in what appears to be a recalibration of its ESG strategy. Meanwhile, Bravura Solutions has expanded its digital presence for superannuation members, recently celebrating a significant market reach milestone.
The retirement product space faces new challenges as the cost of maintaining a comfortable retirement has increased, driven by persistent inflation weighing down retiree costs despite some small reprieve. This economic pressure has reignited debates about whether we truly want fewer choices for Australian retirees in retirement product options.
Colonial First State has introduced aged care guidance as part of an expanded advice offering, addressing a growing need in an aging population.
A concerning gender disparity has emerged in retirement confidence, with three in five women reporting a lack of confidence about their retirement prospects. This aligns with broader research showing that women feel less prepared for retirement than men, with low financial confidence extending to superannuation decisions.
These findings underscore why gender parity in financial services represents not just a social but an economic imperative, requiring targeted industry intervention.
In the technology domain, a report suggests that large financial firms are falling behind on AI adoption despite its potential to address operational challenges. Aware Super has identified that data management remains their most significant challenge in delivering customer-centric services. These technology hurdles come as independent investors increasingly leverage technology for self-directed investment strategies.
APRA has proposed significant reforms to strengthen and streamline governance and fit-and-proper person requirements, specifically targeting poor practices in super, insurance, and bank boards. The regulator has also moved to impose expertise requirements on superannuation fund boards, noting that some boards remain deficient in investment skills.
In a landmark action, ASIC has sued AustralianSuper over death benefit claims failures, with allegations that the fund took up to four years to process some death benefit claims. ASIC Chair Joseph Longo has denied claims of superannuation double standards in enforcement, explaining that ASIC's powers changed in 2021, bringing large super funds into scope.
The regulator has also identified unlawful hawking practices re-emerging in the SMSF sector, signaling potential future enforcement actions.
Andrew Lill, former REST CIO, has been appointed to an interim role at Legalsuper, where he will oversee the fund's investments. This move comes as SSC positions itself as a relatively silent partner in its financial industry relationships.
Legal experts have warned about the potential creep of cancel culture into superannuation fund governance, highlighting governance tensions in the sector.
Based on the weekly update and the broader industry context, here are some key actions the superannuation industry should consider: