Financial Standard Comments - Industry super funds show patchy approach to emergency reserves Industry super funds have increased their emergency reserves since the global financial crisis but the uptake has been patchy with some funds having no buffer at all, new research has found. https://www.financialstandard.com.au/feed/latest?story=12155095 Wed, 03 Aug 2011 15:29:11 +1000 Wed, 03 Aug 2011 15:29:11 +1000 en-AU Copyright 2026 Financial Standard 5 Comment by Tiara () More smoke and mirrors:
"In our view they (those with inadequate reserves) are exposed as they might find themselves in the position of needing to reduce returns to members in order to meet the cost arising from dealing with an operational risk event."
Where exactly does he think the money to build operational reserves will come from to start with?! It will similarly come from a reduction in returns to members - reminiscent of the very frowned upon 'investment smoothing reserves' of days gone by which APRA so opposes.

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]]> Tiara () Wed, 03 Aug 2011 15:29:11 +1000