The new requirements require funds to disclose information about the identity, value and weightings of their investments to be transparent with members who can see where their retirement savings are being invested.
“This information will make it easier for members to compare products and identify the most suitable fund for them,” Treasurer Josh Frydenberg said in a statement.
“Reviews of the superannuation system have found that superannuation portfolio disclosure is unduly opaque, does not meet global best practice and that requiring the disclosure of portfolio holdings would provide greater transparency and allow members to understand where their superannuation is invested.”
Funds must submit the first report of their holdings by 31 March 2022, followed by submissions every six months after that date.
Mr Frydenberg noted that during the consultation phase, which commenced back in August, it was “apparent” that super funds have large exposures to derivatives.
“Given Australia’s superannuation funds have now become a systemically important part of our financial system, it is timely to ensure policymakers and regulators have a sound understanding of the extent and nature of the use of derivatives, and any implications for the operation of our financial system that could arise from these exposures,” he said
To address this, Mr Frydenberg has tasked the Council of Financial Regulators to prepare a report on the matter.
