Mulino said the collapse of certain managed investment schemes (MIS) has led to investors losing millions of dollars in superannuation savings in the Shield and First Guardian funds.
“I have met with some of those investors and expressed my deep concern at what has occurred and the impact on them,” Mulino said.
“Australians deserve a dignified retirement, and it is essential that our investment and superannuation systems remain robust. The government is committed to ensuring that investor interests are protected as far as possible, and the investment landscape is fit for purpose.”
The Assistant Treasurer said that as a first step, he has written to the regulators to identify any steps that can be taken to prevent a similar event from happening in the future.
“I have specifically asked the Australian Securities and Investments Commission to consider whether current financial resource requirements for MIS operators are appropriate,” he said.
“It’s disappointing that these two products made it on to investment platforms. I welcome the Australian Prudential Regulation Authority and the Financial Services Council acting to improve the governance and accountability of these entities. The release of the outcomes of APRA’s thematic review of superannuation platforms today is a welcomed development. The government expects trustees to carefully consider APRA’s findings and swiftly respond.”
Mulino said he recognises the parallel body of work being undertaken by the FSC to ensure that standards are understood and enacted by the sector, and he looks forward to working with them to improve the performance of the sector.
“The government is also considering what other action needs [to] be undertaken to ensure our regulatory system remains fit for purpose and that ASIC has the appropriate powers to better protect consumers,” he said.
