APRA’s letter to super funds highlights concerns about ‘cash’ investments. A lack of understanding might haunt investors when the next downturn comes as too many people forsake protection for yield.
Tag Archives | APRA
Hybrids are no more ridiculous than shares for retail investors, especially bank and insurance company issues. The increase in common equity in banks has improved the quality, but investors must be paid for the risk.
The implications for hybrids, bank margins and bank fees from the increase in the risk-weighting of residential mortgages and learning our banks are not top quartile among the capital levels of global banks.
In 1999, the ATO assumed regulatory control of SMSFs as they were seen as tax vehicles, not serious retirement funds. In 2015, does the ATO have any role in ensuring that SMSF members have a comfortable retirement?
The Centre for International Finance and Regulation (CIFR) recently hosted a conference on the Financial Systems Inquiry, and has just released videos of the sessions with many high profile speakers.
Senior executives from ASIC, APRA and the ATO spoke recently on the evolution of superannuation and the wealth management industry.
A recent change to banking regulation has significant implications for term deposits. With 31+ day break or notice clauses becoming more common, a large difference in deposit rates is expected.
The use of leverage within SMSFs has come under heavy scrutiny lately with strong arguments for and against. Some forms of ‘protected’ gearing can help manage risk, demonstrating that not all gearing is the same.
APRA’s residential mortgage lending guidelines aim to reduce default rates, while making banks more secure and borrowers less stressed. Has APRA gone far enough and will banks risk losing business as a result?
APRA’s decision to continue to class deposits in public super fund as ‘non-retail’ makes it difficult for them to compete with banks and SMSFs. However, some in the industry still believe trustees can take a stand.
Jeremy Cooper answers a question from one of our subscribers about the risk profile, regulatory standards and track record of lifetime annuities. If you have something to add, we invite you to join the debate.
* APRA has announced the final version of the government guarantee on deposits, requiring a Single Customer View from any ADI.
Anyone responsible for product design and pricing in the superannuation industry needs an understanding of the revised Australian Prudential Standards on bank liquidity. Some creative solutions may be needed.
APRA has given a clearer definition of the term ‘financial institution’, and it may be broad enough to catch a wide range of client-authorised activity, including Separately Managed Accounts.
The nation’s savings are in superannuation and the nation’s funding needs are in the banks. Yet the regulators and the new liquidity rules make it even more difficult for the two to get together, with another free kick to SMSFs.
* APRA has told deposit-takers they must implement a Single Customer View regime before 1 January 2014, to prevent multiple coverage under the government guarantee.