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Financial product registrations up 30%

APIR Systems reported a significant increase in the number of new financial product registrations in the financial year just gone.

Product registrations rose 30.1% on the prior year, this also follows an increase of 25.8% in 2020/21.

APIR chief executive Chris Donohoe said: "Registrations of traditional managed investment products continue to thrive indicating a healthy level of product development within the industry."

"Managed fund products continued to be the key registration growth driver, having increased approximately 14% on the prior year.

"Closed end products such as mortgage trusts continue to increase their contribution to overall registration growth numbers."

APIR also expanded its identification coverage with the first registration of insurance related products in 2021/22, he added.

Financial product termination numbers for 2021/22 were also lower than previous years and very concentrated on super investment options, Donohoe said.

During the 2021/22 period, of the total terminated financial products, 78.8% belonged to super investment options.

As previously reported by Financial Standard, Your Future, Your Super reforms, particularly stapling and the annual performance test, have put pressure on segments of the super sector.

KPMG forecasts that pressures on certain funds won't abate and consolidations will continue.

"We expect to see the development of a broader base retirement offering and continual product and solution innovation as funds strive to differentiate their offerings to retain and grow their member base," KPMG added.

Meanwhile the archiving of managed fund products fell over 50%.

After a spike in archived managed fund products in 2020/21, the latest decrease has brought numbers back in line with the five-year rolling average.

However, looking forward, Donohoe said it will be interesting to see the response by product manufacturers to recent changes in the economic climate, including outlooks of higher global interest rates and inflation.

Read more: APIR SystemsKPMGChris DonohoeFinancial StandardSuperannuation