Speaking at the launch of the Class Annual Benchmark Report, Peter Burgess, SMSF Association CEO, said as the industry heads towards a trillion dollars in assets, the government – particularly the ATO – will inevitably want more data more frequently.
“What that means is that we are facing a world where there will be more regular processing than what we’ve had in the past. I think that’s inevitable,” he said.
“We are a big industry. We’re headed toward a trillion dollars, and the government is going to make sure this sector is performing as it should. I don’t think we can avoid having to provide more data, more frequently.”
Burgess said as a consequence of the growth in the value of the sector, cyber security would also become an area requiring more focus.
“We know that for the large funds, there will be standards released by APRA [in regards to cyber security]. I know FSC has done something similar with standards around cyber security, and multi-factor authentication,” he said.
“As a sector, we have to be careful. We don’t want to be the weak link when it comes to things like cyber security to protect clients’ assets.”
The issue of cyber security was also on the agenda of Australia’s peak superannuation body this week.
The Association of Superannuation Funds Australia (ASFA) announced the launch of an initiative aimed at bolstering the super sector’s defences against the growing threat of financial crime with its new program, ASFA Financial Crime Protection Initiative (FCPI).
ASFA said the project was specifically designed to protect Australians’ retirement savings from “increasingly sophisticated” cyber crime and fraud-related risks.
The initiative represents a united effort between ASFA and its membership base.
ASFA CEO Mary Delahunty said the project will aid in strengthening the super industry.
“Superannuation is the cornerstone of financial security for most Australians,” Delahunty said. “This work will help to fortify our industry, helping it remain resilient in the face of these growing challenges.”
“By working together, we stand a better chance of safeguarding people’s savings and maintaining the trust and integrity of the superannuation system.”
According to the peak super body, the new FCPI initiative would build on previous work such as guidance on fraud controls which came into effect on 1 July 2024, as well as Cyber Forums which have been run since 2021.
ASFA said FCPI would “enhance collaboration and knowledge sharing between funds and critical service providers including custodians, administrators and tech providers.”
The initiative will also develop industry-wide frameworks to combat financial and cyber crime, as well as connect the superannuation sector, relevant government agencies and related financial services bodies.
