Australian regulator says pension funds need to improve scrutiny of unlisted investments

By Scott Murdoch SYDNEY, Oct 14 (Reuters) — Australia's corporate regulator said on Wednesday some of the country's pension funds needed to improve scrutiny of their unlisted investments as private markets globally face upheaval. A new report from the Australian Securities and Investments Commission (ASIC) found some funds in the country's A$4.8 trillion ($3.34 trillion) pension industry relied too heavily on valuations provided by third-party agencies. Here are some key points from the ASIC report. Regulators and investors are keeping a closer eye on private market and unlisted asset valuations following the A$3.4 billion collapse of Sydney homebuilder Bathla and after some private credit funds stopped redemptions recently ASIC said it reviewed the financial accounts of 42 superannuation funds to examine the valuation and level of information disclosed around their investments The regulator found the funds often relied on external fund managers to provide valuation information on unlisted investments. That meant the pension funds were limited in their ability to review and challenge valuation assessments and assumptions, ASIC said Some funds did not adjust their members' liabiliti