The Australian Prudential Regulation Authority (APRA) has vowed to continue monitoring relief applications from superannuation fund trustees with liquidity management issues.
In a letter to industry associations including the Investment and Financial Services Association (IFSA), the Association of Superannuation Funds of Australia (ASFA) and the Australian Institute of Superannuation Trustees (AIST), APRA said it had been monitoring applications for relief in circumstances where underlying previously liquid investments had become illiquid.
"Our experience has demonstrated that it remains appropriate that APRA continue to consider applications on a case-by-case basis," APRA executive general manager supervisory support division Keith Chapman said.
Requests related to instances where a trustee identified investment options such as managed investment schemes, where portability relief needed to be considered, or to applications to extend or vary already granted relief.
APRA has also considered a number of applications for relief involving investments by super funds into life insurance policies or pooled superannuation trusts.
Industry bodies welcomed APRA's continued consideration of relief applications.
"These enhanced guidelines give super funds greater clarity about the sort of information they need to supply to APRA in the event of any liquidity problems arising," AIST chief executive Fiona Reynolds said.
ASFA chief executive Pauline Vamos said even though the financial crisis was turning, funds may find it difficult to get the best price for their assets.
"But APRA's continued monitoring of relief is why the super industry is still performing so well," Vamos said.
"The continued high level of regulation helps trustees, helps members and helps the industry."
