Liquidity risk governance in superannuation

Just as everyone was in holiday spirits, APRA released the findings on 17 Dec 24 (Governance of Unlisted Asset Valuation and Liquidity Risk Management in Superannuation - December 2024 | APRA) into their review into superannuation trustees’ progress in implementing enhanced valuation governance and liquidity risk management requirements. Quite a mouthful, but here are the key points:

• Considering the size of super assets at $2.7trn, unlisted valuation risk and liquidity risk is becoming critical

• Across trustees, valuation governance and liquidity risk management are not satisfactory in most cases

• Noteworthy weakness was observed in:

  • Board oversight

  • Conflict of interest management

  • Liquidity stress triggers, unlisted liquidity risks and action plans

The Likwidity platform can certainly help with better governance, transparency, and risk reporting over cash.

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