The Association of Superannuation Funds of Australia (ASFA) and PricewaterhouseCoopers CEO Survey asked fund CEOs “What keeps you awake at night?” – with a majority citing regulatory change as the most concerning.
“Other CEOs are also worried about their capacity to continue to invest in the administration systems impacted by regulatory change,” the report found. “This all culminates in a detrimental impact on cost to members and the outcome for future generations.”
Respondents to the survey said they would like the Financial Services Inquiry – known colloquially as the ‘Son of Wallis’ review – to set a “clear goal” for long-term retirement income policy and to embed sustainability in the system.
In addition, 77 per cent of surveyed CEOs said they do not intend to insource their investment management over the next three years, citing issues of cost and scale.
Those who are considering it referred to control and fee management as reasons they could benefit.
“This finding will be surprising to many people as it goes against the trend we have seen in recent years,” ASFA chief executive Pauline Vamos said. “It shows funds understand that insourcing funds management involves a very different risk profile and needs careful consideration.”
