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APRA announces ‘deep dive’ on unlisted super assets

Mike Taylor31 January 2024
Invest superannuation

The Australian Prudential Regulation Authority (APRA) has told superannuation funds it intends undertaking a “deep dive” of how they value assets.

Outlining its regulatory priorities for the next six months, the regulator said that it expected superannuation licensees to ensure investment governance practices are sound, “particularly in relation to asset valuation and liquidity management practice”.

“A deep dive review on asset valuation and liquidity management practices will also be conducted for a cross-section of large and mid-size trustees with material unlisted asset exposures,” APRA said,

The regulator also warned that it would be looking closely at choice superannuation products by applying its heatmaps approach.

“APRA will maintain a focus on ensuring that trustees responsible for underperforming choice products are taking steps to improve or exit them,” it said.

Mike Taylor

Mike Taylor

Managing Editor/Publisher, Financial Newswire

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Researcher
3 months ago

Only 15 years too late, after their buddies at the union funds have manipulated returns to win the super battle. The are only acting now as the retail funds have joined the union fund rort. Also I’m sure the chat with the union funds won’t be particularly deep and will most likely take place at an union fund super box at the footy over a few beers.

Pro Industry fund unlisted property Ponzi schemes
3 months ago

APRA know that they haven’t been marking unit pricing with articles in the Financial review saying they want to put pressure on super funds to do at least quarterly they are running hybrid ponzi schemes… which super funds during covid requested a bailout from the RBA because each of their members wanted to withdrawal 10k the industry funds not retail fund the industry funds….

APRA continues to do nothing because they know they will be accused of sleeping at the wheel but its worst than that they know their is a problem and it keep getting bigger and bigger the longer they leave it.

Leon
3 months ago

My view is that the valuation of each of the unlisted assets be published in the annual report.

If you want to run around putting ad’s on TV spruiking your peformance, you should be made to open your books and show us how you got there.

Old Risky
3 months ago

So, there is a pulse in Apra. This matter first arose when the Morrison government allowed members of funds to take out two tranches of $10,000 each from their super fund during Covid. All those tradies in CBus with investments in the “we built that” buildings on the Brisbane River may have forced the sale of some of those unlisted assets. But we were never told the detail to the best of my knowledge, and Apra, as usual, were asleep at the wheel.

This is always been a problem. And now Apra have actually got into the murky water that is the valuing of unlisted assets. But I wonder if the forthcoming Apra “dive” will actually raise a splash, particularly with the industry fund’s mate Mr. Jones running the show

Far canal
3 months ago

Let’s see if they have any teeth or as usual are gummy bears.

Regulatory Capture Corruption
3 months ago

Dear Industry Super, it’s APRA here with a couple of wet lettuce leafs.
Please place Unlisted Asset prices on table for a mild tap.
Job done, nothing to see here but made up valuations that APRA will do NOTHING about.
Move along please you all know Industry Super can do what ever they want.

Dusty
3 months ago

The Industry Funds have made an art form of cooking the books to inflate returns via their unlisted/illiquid assets for decades and now APRA want to go after retail funds in this area….deary me, the rort continues it would seem! ISF are way to close to their mates at APRA it appears, it would seem too there may be a protection racquet involved here sadly??? :(((

Last edited 3 months ago by Dusty
Uber Qualified Adviser
3 months ago

Hilarious.
And by the way – The compare the pair adverts should never have been allowed to be aired.
An abject disgrace !

bemused
3 months ago

My experience is that APRA must be on the payroll of these large super funds. Why else have they never fined or taken to court a single super fund. What are they going to do ? Tickle them with a feather.

Stick to looking at the balance sheets of Banks and broke Credit Unions APRA. You’re a useless organization when it comes to the Super sector.