Lonsec launches governance tool as scrutiny of investment oversight intensifies

Lonsec has launched a new investment governance solution aimed at helping financial advice licensees, trustees and investment committees strengthen oversight of approved product lists as regulatory scrutiny of investment governance continues to increase.

The Lonsec Investment Governance Solution (IGS), which is integrated into the research house's iRate platform, is designed to centralise governance monitoring by bringing together fund ratings changes, performance trends, fee movements and other investment signals into a single reporting framework.

The launch comes as governance obligations across advice, superannuation and platform businesses continue to evolve, placing greater emphasis on demonstrating robust and defensible investment decision making processes.

Lonsec executive Lorraine Robinson said investment governance has become a critical focus across the financial services industry.

"Across advice licensees, platforms and trustees, expectations around governance have never been higher," Robinson said.

"Advisers and clients want to know that investment options are being monitored and accountability. The Lonsec Investment Governance Solution provides the framework and transparency that supports better decision making and greater confidence at every level," she said.

The solution seeks to address a common challenge for governance teams which continue to rely on spreadsheets and fragmented monitoring processes to oversee investment menus and approved product lists.

According to Lonsec, the platform creates a structured audit trail that enables organisations to document how investment decisions are reached and monitored over time.

Lonsec head of sales Anna Schofield said recent events across the financial services sector had heightened awareness of governance responsibilities.

"With recent high-profile failings in our industry, the focus on investment governance has intensified and the obligation on those who manage APLs and investment menus in particular has become clearer," Schofield said.

"By embedding governance signals directly within iRate, the Lonsec Investment Governance Solution gives investment teams and advisers greater clarity and confidence in decision making, with a clear and defensible record of how and why decisions were made," she said.

The solution is targeted at advice licensee, investment committees, trustees and platform operators seeking to strengthen governance frameworks while reducing the administrative burden associated with ongoing investment monitoring.

Lonsec said the offering builds on its existing research capability, which covers more than 1900 investment products and is supported by a local research team focused on the Australian market.

The move reflects growing industry demand for governance tools that can help firms evidence oversight processes as regulators place increasing emphasis on accountability, transparency and member outcomes.