ORFR

The Australian Institute of Superannuation Trustees (AIST) has argued that funds should be permitted to use their operational risk financial reserve (ORFR) to upgrade their systems and prevent future risks earlier. The “blunt” 0.25 per cent of fund capital that funds must hold in their ORFR is now becoming a “very significant sum” for some…

While profit-to-member funds have been given the go-ahead to build reserves from new fees on members, Equity Trustees believes that fund shareholders should pony up instead. The issue of so-called “$12 trustees” has leapt to prominence in recent months as super funds flocked to courts to get the green light to build capital reserves through…