On Dec. 17, AST APRA issued enhanced valuation governance report.
AST APRA published findings from review of superannuation trustees' implementation of enhanced valuation governance and liquidity risk management requirements.
Follows AST APRA Nov. 2024 spoke on intense scrutiny of super industry, #234182.
Background
Review examined 23 trustees managing 80% of AST APRA-regulated superannuation assets, following update to Prudential standard SPS 530 investment governance.
Found that 12 of 23 trustees require material improvements to meet SPS 530 requirements in valuation governance or liquidity risk management frameworks.
Overview of Findings
Identified weaknesses in unlisted asset valuation governance such as board oversight and conflict of interest management, revaluation frequency and triggers, valuation control, fair value reporting; highlighted deficiencies in liquidity risk management.
Namely, liquidity stress trigger frameworks, unlisted asset liquidity risks, liquidity action plans; AST APRA to directly engage with those trustees showing deficiencies.
Trustees are expected to review findings, assess compliance with prudential standard.
The upcoming financial accountability regime will address accountable persons' duties.
Regulators
AST APRA
Entity Types
Fiduciary; IA; Pension
Reference
PR, 12/17/2024; ESG
Functions
Actuarial and Valuation; Compliance; C-Suite; Financial; Risk
