The cash investments of superannuation funds have come under particular scrutiny in recent years and Rice Warner has been active in reviewing and improving these arrangements for superannuation trustees. We do this by combining specific technical knowledge of the optimal cash management structures for superannuation funds and platform providers with our broad tender experience and robust tender and benchmarking processes. Our experience includes benchmarking, no names RFIs and full market tenders, and has been applied to extract full value from both third party and related party cash providers
Strategic advice and product solutions
Solutions for future competitive advantage.
Some recent examples of our work includes:
- Remediation of unit pricing error involving $85 million across 120,000 accounts. We managed the programme, co-ordinated relevant advisers and service providers, and facilitated agreement on calculation methods and operational issues. After four months the remediation approach was fully resolved and implemented for all continuing members with processes put in place to finalise payments to exited members. Management were able to refocus on their normal responsibilities, and the exercise was completed with no media coverage, no complaints from members and large numbers of members complimenting the fund on its approach. The custodian reimbursed all costs, agreed improvements to the servicing model and continues to be the fund’s custodian.
- Second opinion on proposed approaches to remediating several unit pricing errors, leading to removal of complications which had little impact on members but would have been expensive to implement and were not required. This reduced the costs of resolving the problem by approximately 60%.
- Independent report on recommended resolution of a long-running defined benefit dispute, leading to all the issues bar one being resolved in line with Rice Warner’s report recommendations and the parties effectively “splitting the difference” on the remaining issue to finalise the matter.
- Expert report on apportionment of financial responsibility for losses due to frauds by a former employee of a large group, in a dispute that was before the Federal Court. This led to the liabilities being settled before trial to the satisfaction of all parties.
Expert assistance in relation to insurance remediation calculations. We have developed a methodology and model to undertake calculations in relation to individuals who have incorrectly lost insurance.
Rice Warner has built a reputation for providing fact-based guidance to superannuation industry participants backed by informed opinion and thought leadership. Our unique insights, supported by our rich databases and research, help clients develop effective commercial and operational strategies.
As Actuaries, complex financial modelling is at the heart of what we do and supports much of our strategic and policy work. We have a variety of established models including:
- Demographic projections models for the superannuation, personal investments and group insurance markets.
- Models to project wealth, insurance and retirement savings for individuals using our calculation engine PHOEBE.
- Tailored models built to solve client specific problems across a variety of problems in super, insurance and wealth.
Rice Warner has developed a strong FinTech consulting capability, acquired over many years and many implementations in the digital advice arena.
Our FinTech consulting services include:
- Business and actuarial analysis, specification and coding (Java) on digital advice projects
- Rice Warner system accreditation – Actuarial testing and sign-off of digital advice solutions
- System reviews and benchmarking (administration, financial planning, digital advice tools etc.)
- Consultation on projects to assist in the design of the advice workflows supporting goals-based advice.
Member statement benefit projections are an effective way to engage members to think about their superannuation in practical terms and help to encourage members to take action to improve the projected retirement benefits. Rice Warner prepares these projections for a range of funds, each calling upon our deep experience in the provision of financial tools, calculators and advice software, to provide funds with peace of mind that their benefit projections are accurate and compliant with regulatory requirements. We also provide actuarial accreditation for a variety of funds who have performed these calculations in-house or have developed their own tools and processes to perform the projections.
Rice Warner’s extensive superannuants database and related research enables us to help benchmark superannuation funds, whether products, fees, investments, insurance, service operations or costs and expenses.
Rice Warner’s heritage is as a firm of consulting actuaries. Our superannuation actuarial services cover financial modelling, benefit projections, independent insurance in superannuation pricing review and investment analytics as well as prescribed actuarial work for defined benefit superannuation funds.
Rice Warner provides decision support and advice tools to the Australian financial services market, having built and deployed over 100 advice tools to date. We provide consulting services, mathematical capability and development work on advice tools throughout the industry.
Our capabilities and tools cover the following markets:
- Superannuation and Retirement
- Life Insurance
- Savings, Debt and Budgeting
Built by our Actuaries, PHOEBE is an Application Programming Interface (API) that provides access to a wide range of complex mathematical functions and services. It solves common problems faced by our clients across the financial services industry. The functions provide actuarially certified compliant calculations across the full spectrum of financial advice for members or customers.
PHOEBE has been implemented for a range of clients, including banks, superannuation funds, financial planning groups, wealth management organisations and industry bodies.
PHOEBE provides clients with peace of mind that, by using a central source of calculations, they will always provide their members and customers with consistent, compliant and accurate information and output.
GALAXY is a market leading API enabled product research engine that supports the provision of financial advice by providing simple views of complex product research data, algorithms and information. GALAXY APIs allow disparate systems to retrieve information required to perform product analysis, comparison and selection, based on client details and their product needs.
GALAXY supports five product markets via two engines:
- Superannuation and Investments Engine
- superannuation products
- investment platforms
- pension products
- Risk Engine
- insurance outside superannuation (Retail)
- insurance inside superannuation (Group)
Our experience in the provision of financial tools, calculators and advice software provide us with the ability to provide our clients with peace of mind that their tools are accurate and compliant with regulatory requirements. Our actuarial accreditation service involves the formal testing and actuarial sign off that financial tools/calculators and in-house spreadsheets/ models have accurate calculations and meet ASIC requirements.
Contact our team today to learn more about how Rice Warner can help.