Improving consumer and investor confidence
A speech by Peter Kell, Commissioner, ASIC, delivered to the Association of Superannuation Funds of Australia (ASFA) NSW February Luncheon Briefing, 14 February 2012
...This is one of my first public engagements of the year, and I’m very pleased to be speaking with ASFA and its members.
This audience is keenly aware of the growth in Australia’s pool of super funds. It is estimated that super funds under management will rise to nearly $3 trillion over the next decade.
Compulsory contributions may increase to 12%, and with this increase will come greater community expectations for stronger protection and resilience in the financial system. At the same time ASIC will need to regulate and facilitate an environment where an increasing proportion of consumers are in or transitioning to their retirement phase.
This growth and the structural changes in super, and the impact this has on the markets that ASIC regulates, are considerable. Super funds are invested in equities, bonds, managed investment schemes and other more complex products which fall within ASIC’s remit.
Financial advisers, superannuation trustees, investment managers, custodians, research houses, credit rating agencies, auditors and accountants all play roles in supporting investors in superannuation funds, and are all regulated by ASIC.
So the growth in super raises substantial challenges for the Commission. They are challenges we look forward to addressing with the strong support of industry groups such as ASFA. ...