AUSTRALIA - The superannuation industry, led by custodians, will pursue a 'back to basics' agenda over the course of 2009, the Australian Custodial Services Association (ACSA) has said.
He said: "Custodians' primary function has always been the safekeeping of third party assets, and Australia has a strong record of professionalism and trust in this regard."
With the market turmoil Australia has experienced over the past year, Gray said custodians faced a greater challenge in dealing with the issues the economic crisis had thrown up.
He added: "However events of the past year have shaken the world's financial system to its foundations. The current focus on balance sheet integrity and counterparty risk has placed ever more onus on custodians and administrators to ensure the proper safekeeping, regulation and administration of Australia's substantial super and investment pool.
"We expect 2009 to produce similar levels of industry and regulatory activity and we will continue to work with regulators, the tax office, the RBA, ASX and other market players to help inform the market of the role of custodians and how the investment administration function works in a practical sense."
Reuters has also reported the Australian government has ruled out raising mandatory employer contribution above the current level of 9%, despite some within the industry calling this inadequate.
Superannuation minister Nick Sherry reportedly told Reuters employer contributions would "categorically" not be increased.
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