July 2022

Use of Derivatives by Superannuation Funds

In November 2021, the then Treasurer wrote to the Council of Financial Regulators asking whether the current use of derivatives by superannuation funds raised any concerns, particularly in terms of:

  • operational capability of funds to properly manage large volumes of derivatives transactions
  • prudential implications for the operation of individual funds and the outcomes for members of those funds
  • any broader implications in terms of financial system stability.

The Council provided its advice to the Treasurer on 29 June 2022.