The ASIC report into death benefit claims revealing the devastating impact of poor industry practices on grieving Australians has again highlighted the pressing need for change. While some funds have taken up the cudgels, others are still playing hardball on improving their service offering.
A Retirement Income Covenant obligation notwithstanding, there is still a paucity of these complex products on offer. The Advice Through Superannuation draft legislation might offer a way forward.
EISS switches custodians
(Pictured: Alex Hutchison)
Energy Industries Superannuation Scheme, the A$4.3 billion NSW-based fund, has changed asset servicing provider following a review. Northern Trust is replacing JP Morgan.
The fund did a “detailed search and due diligence” under the supervision of chief executive Alex Hutchison and with the help of consultants. This is a relatively new trend whereby fund chief executives and chief investment officers seem to be taking far greater interest in their custodian relationships than previously, where the decision had been left to CFOs and COOs.
Hutchison said consultants to the review were Michael Rice, of Rice Warner, and Antionette Elias, a partner at EY (formerly known as Ernst & Young).
Hutchison said: “The custodian is a key strategic partner in the provision of services for the fund and competition in this space has significantly increased over the past few years. Northern Trust’s culture, global operating model and technology systems were key areas of importance for the fund.”
Rohan Singh, managing director of Northern Trust in Australia, said: “We are delighted and honored by the appointment, and look forward to supporting EISS with a range of solutions to meet their investment oversight, governance and growth strategies.”
JP Morgan’s loss follows its big win of the Cbus asset servicing contract, from NAB Asset Servicing, late last year. That transition is continuing.
