APRA

While APRA’s proposed hybrid phase out is designed to improve the resilience of the financial system, it will inevitably impact investors and the strategic plans that some advisers have laid out. Navigating the transition will require forethought.

It’s odd that of the 12 published submissions to APRA’s consultation on hybrids, not one advocated getting rid of them altogether. Is the regulator trying to protect banks and retail investors from themselves, or is it simply “jumping at shadows”?

A joint review conducted by ASIC and APRA was scathing of funds’ collective attempts to meet their new legal obligation to help fund members plan for retirement, and urged them to “address, with urgency, the gaps in their approach”.

With new data showing offshore share investments comprise just 2 percent of total self-managed superannuation fund assets in Australia, advisers are warning SMSFs against overreliance on domestic shares and cash and urging diversification.

Stakeholders have welcomed a recommendation from the Senate Economics Legislative Committee that the government review its controversial plan to limit franking credits stemming from capital raisings and share buybacks.

The federal government is seeking feedback on proposed changes to rules aimed at preventing non-arm’s-length transactions by superannuation funds, in a bid to address concern that SMSFs and smaller funds that breach the provisions could be disproportionately penalised.

The Financial Services Council and its provider members are putting their weight behind the advice review leader’s suite of reforms as the December 16 delivery date looms.

Funds have adapted to the test’s metrics, but the consequent risk aversion could put the industry in “limp mode” and curb performance.

Industry fund-owned ‘The New Daily’ is once again in political hot water after a controversial deal with AustralianSuper to auto-subscribe 800,000 of the fund’s members to the publication. ‘The New Daily’ has become a bee in the bonnet for a number of Liberal backbenchers, most notably NSW Senator Andrew Bragg, who has characterised the publication…

It may be a lull between storms but the SMSF Association has no major political battle to contend with at the moment, instead focusing on smaller issues to do with regulatory change and embarking on new research about small funds’ performance in case that becomes an issue in future. John Maroney, the association’s chief executive,…