Insignia Financial poaches former ASIC commissioner Danielle Press

ASX-listed wealth and superannuation player Insignia Financial has secured former ASIC commissioner Danielle Press to chair its retirement business.

ASIC commissioner Danielle Press.

Former regulator Danielle Press says superannuation giants should be cautious, but not hesitant, when investing in private assets and credit.

Ms Press, who has been poached to chair Insignia Trustees, the superannuation arm of ASX-listed wealth and retirement business Insignia Financial, said the industry had to balance the risks against the opportunities of alternative assets as it sought to meet the demands of an ageing population.

The former Australian Securities and Investments Commission regulator joins as a non-executive director on September 19 and will take on the running of Insignia’s superannuation board in November.

Ms Press joins Insignia’s board of trustees after almost 30 years in finance as well as six years leading Equip Super, which merged with Catholic Super in a $26bn deal in 2019.

She replaces Lindsay Smartt who joined Insignia Financial, formerly known as IOOF, in 2019.

Ms Press said several recent upsets in private credits and unlisted assets, such as AustralianSuper’s $1.1bn loss on US software firm PluralSight, showed the risk facing the superannuation sector’s investments.

ASIC has told the super sector it would put together a taskforce to investigate private assets and private credit players as a key priority.

Ms Press, who joined ASIC in 2018, said super funds should manage risk and ensure it was “appropriately priced”.

“Private credit is an asset class that should be considered but it’s not without risk,” she said.

ASIC is also examining the way super funds engage with their members as many enter retirement.

Ms Press said the superannuation sector was at a “really important inflection point”.

“There are challenges there, regardless of where you sit in the circle; they’re pretty similar, whether you’re a retail fund, or industry fund,” she said.

“Accumulation is a relatively easy formula, retirement is a really challenging formula and making sure we’re delivering good outcomes for people is the aim of the game.”

Ms Press said Insignia was well placed to cater to this demographic, as it had a significant advice business ready to serve members, whether or not mooted industry reforms were introduced.

“Having an innate understanding of how advice works and what consumers need from that advice should place Insignia in a really strong position to do well as that silver tsunami comes through,” Ms Press said.

The move to appoint Ms Press to Insignia’s board comes almost six years after the Australian Prudential Regulation Authority took aim at the firm, in its previous incarnation as IOOF, over failures to act in the best interests of members.

At the time APRA attempted to disqualify a number of directors.

Ms Press said super funds had to ensure good governance, and that industry funds had to resolve questions about their controls.

“There’s still some way to go across all funds,” she said.

“The trustee offices … have improved governance and member outcomes; we have to make sure this is a strong focus.”

APRA has approved Ms Press’ appointment to Insignia’s board. ASIC is also expected to issue a warning to the former regulator over her previous role overseeing much of its work around the superannuation sector.

Insignia Financial chair Allan Griffiths said Ms Press would boost the group’s super fund services for members.

“She brings a wealth of industry knowledge and an unwavering commitment to driving outcomes for members,” he said.

“Danielle’s appointment also highlights our ongoing focus on and commitment to uplifting our risk governance culture.”

Mr Griffiths also thanked Mr Smartt for his time with Insignia.

“Lindsay has played a significant role in how we, at Insignia Financial, look after our superannuation members and their best interests,” he said.