The Australian Custodial Services Association (ACSA) says the role of the custodian has broadened and is fundamental to supporting the continued growth in the superannuation, wealth management and investment sectors.

In his opening address at the 17th Annual Investment Administration Conference 2014 held in Sydney yesterday, ACSA Chair David Braga said the custodian’s role in facilitating Australia’s financial landscape was more important than ever as the sector continued to grow, fuelled by compulsory superannuation.

“Custody and investment administration is crucial to the overall health and wellbeing of the superannuation, wealth management and investment sector and is one of the fastest growing areas of Australia’s financial services community,” Mr Braga said.

While custodians remain the safekeepers of over $2 trillion of assets owned by Australian investors and almost $1 trillion of Australian assets for non-Australian investors, Mr Braga commented this was just a slice of the wide range of services provided today.

The role of custodians and investment administrators has grown over the past decade to include a range of middle-office services, including maintaining accounting records, tax reporting, compliance, performance monitoring, unit registry services and fund reporting.

ACSA, as the peak body representing the interests of the custodial and asset administration industry in Australia, used the annual Investment Administration Conference to unveil a revamped mission aimed at highlighting the importance for custodians to be heard in discussions across the financial sector.

“ACSA’s mission is to promote efficiency and international best practice through a united voice for the custody and investment administration industry in Australia,” Mr Braga said.

“Our core objectives remain largely unchanged and we will operate in the same way we have in the past. Custodians have a unique voice that needs to be heard in the debate across the financial sector. We are not proactively pushing policy direction, however we do have the best knowledge of the practical reality of running the large complex fund structures required to support Australians’ savings and investment aspirations.”

Mr Braga said 2013 was a busy year for ACSA members, highlighted by the Stronger Super Task Force and its ongoing work with APRA to ensure smooth implementation of MySuper reporting requirements.

Looking ahead to 2014, the ACSA Chair outlined several key initiatives the association will focus on, including:

Implementation of Stronger Super and RG133 reforms

• Launch of a new working group with a focus on the New Zealand custody and investment administration market
• Ongoing work with the ASX towards market automation, particularly for corporate actions
• Engagement with the ATO on a raft of taxation changes, including the Managed Investment Trust reform and electronic filing
• Continuing to work closely with regulatory bodies and other industry associations
• The theme for this year’s conference, produced by Conexus Financial in partnership with ACSA, is Efficiency in a Regulated World.

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