AUSTRALIA - Superannuation trustees must be able to justify their investments in riskier asset classes such as private equity, minister for superannuation and corporate law Nick Sherry has warned.
He said: "The council considered that superannuation fund trustees need to consider - and be able to document and justify - that investments made are consistent with the disclosed investment strategy.
"They must also prove that they have achieved a level of diversification reasonable, having regard to the circumstances of the fund."
Sherry said compulsory superannuation must be accompanied by a strong "duty of care" by the Government.
He said: "We emphatically concur with the Council's expectations and will be monitoring developments accordingly."
Partner Insight: In recent years, pensions administrators have seen scheme member engagement increase significantly. The advent of pension freedoms in 2015 and the increased choices faced by members have led to a sea-change in the levels and types of...
The Pension Protection Fund (PPF) and The Pensions Regulator (TPR) are probing the sale of Johnston Press as concerns are raised over the impact on the publishing house's pension fund.
The Co-operative Group's pension scheme, Pace, will invest up to £50m into the social and affordable housing market over the next 12 months.