Regulatory Pressure on Investment Governance Following Fund Collapses

The Australian government has directed the Australian Securities and Investments Commission (ASIC) to reassess current financial resource stipulations for managed investment scheme (MIS) operators.

Concurrently, the Australian Prudential Regulation Authority (APRA) has advised platform trustees to enhance governance standards.

These actions stem from the collapse of the Shield and First Guardian master funds, which led to significant investor losses.

Minister for Financial Services Daniel Mulino emphasized the need for a robust investment and superannuation system to ensure Australians can retire with dignity. He highlighted the severe impact on investors and expressed concern over millions in lost superannuation savings. ASIC chair Joe Longo noted that the rules governing MISs require a fresh examination to prevent future incidents.

APRA's review discovered that some trustees are excessively reliant on external ratings agencies, lacking in systems to identify investment product risks. The regulator urged trustees to bolster due diligence processes, reduce dependency on external ratings, and conduct both internal and external evaluations of investment products concerning performance and liquidity.

This scrutiny arose after a Professional Planner investigation revealed that FE fundinfo did not adjust its ratings for the First Guardian Master Fund even after court action froze its assets. As regulatory expectations tighten, legal obligations concerning product due diligence might face challenges. ASIC has forewarned that legal reforms could be required, pending the outcome of ongoing legal cases.

Although several platforms refrained from hosting the affected funds due to diligence concerns, issues regarding conflict of interest in onboarding processes have been noted. APRA advises platforms to implement thorough policies to manage conflicts, especially in cases where investment products within the same corporate group are involved.

The Financial Services Council (FSC) has committed to developing guidance for platforms, advocating for heightened operational standards to protect investors and enhance trust in the superannuation system. The FSC stressed the necessity for the government to address gaps highlighted by the recent fund collapses.

Approximately $1.2 billion of retirement savings for 11,000 investors are endangered due to the Shield and First Guardian issues. Last week, Macquarie agreed to compensate affected members of its Superannuation Plan, illustrating the ongoing impact of these failures. APRA will continue to engage with platform trustees to assess compliance with prudential standards and address any breaches effectively.

Published:Wednesday, 8th Oct 2025
Source: Paige Estritori

Share this news item:

Finance News

Record Growth in Electric and Hybrid Vehicle Financing in Australia

04 Oct 2025: Paige Estritori

The Australian Finance Industry Association (AFIA) has released its latest Electric Vehicle & Hybrid Finance Report, revealing a significant surge in financing for electric and hybrid vehicles across the nation. In 2024, Australians secured over $6.17 billion in loans for these vehicles, representing a 50% increase compared to the previous year. This substantial growth underscores a clear shift towards cleaner transportation options among both consumers and businesses. - read more

Thailand's New Loan Guarantee Program Aims to Boost Pickup Truck Sales

04 Oct 2025: Paige Estritori

In a strategic move to rejuvenate its automotive sector, Thailand has introduced a loan guarantee program specifically targeting pickup truck sales. The government has allocated a 5 billion baht (approximately $147.80 million) support package over seven years, aiming to incentivize financial institutions to approve loans for pickup trucks-a segment that traditionally accounts for a significant portion of the country's domestic auto sales. - read more

Increase in Car Loan Delinquencies Signals Financial Strain Among Australians

04 Oct 2025: Paige Estritori

Recent data indicates a concerning rise in car loan delinquencies across Australia, with a 13% increase in vehicle repossessions over the past six months. This trend underscores the growing financial pressures faced by many Australians, as inflation and high interest rates continue to impact household budgets. - read more

2022 Kenworth Dealer of the Year Named

18 Feb 2023: Paige Estritori

Brown and Hurley Kenworth DAF Caboolture has been awarded the prestigious Kenworth Dealer of the Year award for 2022, marking the first time the dealership has received the accolade. Presented at PACCAR’s annual dealer event, the Caboolture dealership was announced as the victor among PACCAR’s 93 locations across Australia, New Zealand, and Papua New Guinea. In addition to the Kenworth Dealer of the Year award, the Caboolture dealership was also named Cummins Dealer of the Year for 2022. - read more

Click for more Finance News

Truck Loans Articles

Maximizing Your Fleet Budget: Comparing Used vs. New Truck Costs

When it comes to expanding a commercial fleet in Australia, the decision between purchasing new or used trucks can have a significant impact on your budget. With this article, we aim to delve into the critical considerations that fleet owners must make in juxtaposing the costs of new verses used trucks, meticulously unraveling the financial layers to guide you towards a choice that aligns with your company's fiscal strategy. - read more

Pre-Approval: Why It Matters and How to Get It for Your Truck Loan

When you're eyeing that perfect truck to support your business or lifestyle, understanding the ins and outs of financing can save you time and effort. One crucial step in the truck financing journey is securing a pre-approval. But what exactly does pre-approval mean? - read more

How to Budget Effectively for Commercial Vehicle Loan Repayments

Managing repayments for a commercial vehicle loan is a critical aspect of running a successful business. Without a solid plan, unexpected costs and missed payments can create financial strain. - read more

The Ultimate Guide to Truck Loan Terms for Commercial Vehicles

Getting a truck loan is a significant financial commitment, especially for commercial vehicles. Understanding the terms of your truck loan is crucial for managing your finances effectively and ensuring that you can meet your repayment obligations. - read more

Trucking finance: How leasing can help grow your business

Running a successful trucking business in Australia can be a challenge, but with the right financing options, you can grow your business and increase profits. One popular financing option for truckers in Australia is leasing. Leasing allows trucking businesses to acquire vehicles and equipment necessary for their operations without incurring the high costs of outright purchase. - read more

Start Here

Get a free truck loan eligibility assessment and compare truck finance and leasing options without accessing your credit file!!

Knowledgebase

Truth in Lending Act (TILA):
A federal law designed to promote the informed use of consumer credit by requiring disclosures about terms and costs.