Senator Nick Sherry is a man who has been rather active on the conference circuit of late.
In April, he addressed four conferences and two industry lunches. In April, he also spoke exclusively to Investor Weekly.
As opposition spokesperson for superannuation, Investor Weekly often spoke with Sherry about his wish list for the industry.
Now in government, the industry’s new super man speaks to us about what he plans to do.
With a ministerial portfolio dedicated to superannuation, all eyes will be on the Government and whether it will deliver on the industry’s big ticket issues, including adequacy, fee structures and, of course, governance.
Indeed Sherry has entered government in tumultuous times. With corporate law as part of his portfolio, his ministerial responsibilities extend to corporate governance.
The sub-prime debacle and corporate collapses have turned the spotlight back onto governance.
The crumbling of broking firms Opes Prime, Lift Capital and Tricom have highlighted the role of short-selling in the share market.
The practice was blamed for causing the sharp falls in the stock prices of ABC Learning and Allco Finance, leading to rumours of collusion and insider trading.
As such there have been calls for greater market disclosure.
The Australian Securities Exchange is currently fielding submissions from market participants on the practice of short-selling.
Again the industry will watch closely on how the Government approaches the issues of market integrity and disclosure.
Australian Institute of Superannuation Trustees chief executive Fiona Reynolds is pleased the Government has not been reactionary to date.
“We don’t necessarily want to see new regulation. We just want better disclosure. The Government has already looked at the practice closely and we are comfortable that they have not reacted in a knee-jerk way.” Reynolds says.
While the industry has not accused the Government to reacting in a hysterical fashion, the media has come under the attention for overstating the risks of short-selling.
For some people, dealing with the media sometimes can be a tricky affair. A word taken out of context can lead to all sorts of misconceptions. Sometimes the media is accused of blowing certain issues out of proportion. As in the case of securities lending.
“Let’s face it issues like these (short-selling) can be very sexy for the media to write about,” one industry participant told me.
Reynolds notes that against the sub-prime collapse, negative superannuation returns and stockbroking firm collapses, the issue of short-selling fits neatly with the media focus on current negative market events.
Superannuation funds were also targeted for engaging in “the sordid” practice, as one media outlet wrote.
It’s this media coverage on the subject that has led some superannuation funds to put out detailed statements about the practice to their members.
Echoing Reynolds’ comments, we are in a period of intense market negativity. The industry now manages over $1 trillion in people’s retirement money.
Media hysteria withstanding, it’s precious money that needs to be vigilantly watched. A task that no doubt Sherry understands.
