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Recently, ASIC (Australian Securities and Investments Commission) released findings from a review highlighting concerning trends in the performance of Choice superannuation options, prompting a call to action within the financial services and superannuation industry. This article delves into ASIC's key observations and emphasises the critical role of product lifecycle monitoring in safeguarding consumer trust and ensuring optimal service delivery.

Additionally, we explore how innovative solutions like Skyjed can automate monitoring and oversight processes, enhance transparency, and facilitate early risk detection.

Key Call Outs from ASIC's Media Release:

ASIC's review highlights the risk posed to retirement outcomes by persistently underperforming superannuation options, affecting millions of Australians who entrust their savings to these products.

There is a noticeable absence of emphasis and transparency when it comes to underperforming Choice investment options. Trustees and financial advisers could improve in effectively communicating performance issues to members.

ASIC emphasises the importance of prioritising investment performance throughout the product lifecycle, implementing robust monitoring systems, and proactively addressing underperformance to mitigate member risks.

Financial advisers are urged to prioritise performance in their recommendations, providing clear rationale when advising on underperforming options based on clients' circumstances.

ASIC is considering regulatory responses to address instances where clients are at risk of detriment due to inadequate advice, signalling a commitment to enforcing industry accountability and protecting consumer interests.

The Importance of Product Lifecycle Monitoring:

In today's dynamic financial landscape, where consumer expectations are high, and regulatory scrutiny is intense, monitoring product performance throughout its lifecycle is paramount.

This ensures that consumers receive the value they expect and deserve, fostering trust, loyalty, and positive outcomes.

Skyjed offers a cutting-edge solution to automate monitoring and performance evaluation, enabling organisations to track their products' progress, identify potential risks early on, and take proactive measures to rectify issues.

How Skyjed Enhances Monitoring and Performance:

Skyjed revolutionises product management by providing automated product performance assessment, reporting and risk triggers for early warning.

By leveraging our AI advanced analytics, it empowers organisations to increase transparency, streamline decision-making processes, and align efforts with strategic priorities.

Through comprehensive monitoring, Skyjed enables superannuation and financial services organisations to identify underperforming products swiftly, thereby proactively be in a position to communicate to members and safeguarding member interests and enhancing overall efficiency.

As we navigate an increasingly complex landscape, proactive product lifecycle monitoring remains a cornerstone of effective governance and sustainable growth.