Fund Regulatory Update

FSC supports fund divesting Russian assets

The Financial Services Council (FSC) has made known its support for the Federal Government’s guidelines to divest Russian assets as part of economic sanctions as Russia invades Ukraine. Guidance is being developed by the FSC for superannuation trustees and fund managers to allow the implementation of sanctions. No new investments in Russian assets are to be made by superannuation funds, and funds will be expected to review their portfolios to wind down exposure to Russian assets. Appropriate compliance should be in place.

The Australian Prudential Regulation Authority (APRA) has announced it will not be taking action against trustees regarding Russian assets. There are around $3.5 trillion in total assets, and Russian holdings make up only a small portion of this.