The Actuaries Institute has released its latest Research Paper, titled Uplifting Superannuation Risk-Based Capital Management
. This Research Paper aims to assist superannuation trustees uplift their approach to risk-based capital management by providing a framework and practical examples.
The time is right for an uplift since:
- superannuation funds are becoming larger and more sophisticated;
- legislative changes now prohibit a trustee being indemnified out of fund assets for penalties, fines and infringement notices;
- a trustee must now comply with a best financial interest duty;
- there is emerging regulatory and commercial need for APRA regulated funds to strengthen financial contingency planning; and
- there is an ever-increasing focus on member outcomes, and more generally strengthening financial resilience, within APRA regulated funds.
This paper has been prepared by an actuarial Working Group established by the Institute’s Superannuation and Investments Practice Committee.
Working Group members are Tim Gorst, Tim Jenkins, Philip Chu, Peter Cominos, Leandro Ao and Nitin Jain.