Fund Regulatory Update

FSC wants super fund ESG investments to be included in BFID

The Financial Services Council (FSC) is urging the government to include superannuation fund environmental, social and governance (ESG) investments in the proposed Best Financial Interests Duty (BFID). Some argue that the government’s proposed BFID aims to ensure superannuation trustees are making decisions in the best financial interests of their members, leaving the possibility that superannuation funds could be discouraged from investing in ESG-focused assets.

In its submission to the Treasury on Your Future, Your Super (YFYS) reforms, the FSC was supportive, however, it is requesting legislation to clarify that long-term investment decisions (such as those that incorporate ESG), are included.

Class action against NAB MySuper heads to court

The class action against MLC Nominees and NULIS Nominees launched by Maurice Blackburn is heading into the Federal Court. The class action was launched on behalf of 330,000 MasterKey members, who accuse the trustees of breaching their duties by delaying the transition of the member funds and accounts to cheaper MySuper products.

A December 2020 ruling by the Supreme Court of Victoria ruled the case invalid, saying loss and damage does not extend to prospective loss, however, Maurice Blackburn has now filed in the Federal Court.