POWERED BY MOMENTUM MEDIA
APRA seeks feedback on super financial resilience
The Australian Prudential Regulation Authority (APRA) is seeking information from superannuation trustees on their plans to maintain financial resilience and protect members’ best financial interest.
This covered the use of the operational risk financial requirement, reserving practices, protections afforded via insurance and fee setting and design.
Specifically on fee setting and design, APRA said this was likely to “continue to evolve” over the next few months in light of ongoing legal matters regarding fund reserves.
Super trustees were required to maintain sufficient financial strength, contingency planning and robust business plans to operate effectively, particularly in the unexpected event of fines or corporate restructures.
APRA executive member, Margaret Cole, said: “We want to know more about how adequately resourced trustees are, how they are making financial projections in business planning practices, and what is their provisioning for contingencies.
“The imminent change to the law regarding the use of fund reserves to pay financial penalties will cause some trustees to rethink their current structures and approach. We are particularly keen to learn more, through this consultation, about how trustees are planning to change current practices.”
Trustees were invited to submit feedback by 11 March, 2022.
AUTHOR
Laura Dew
Laura Dew is editor at Super Review. Prior to joining SR, she spent five years working at Investment Week in the UK covering asset and wealth management.
Recommended for you
Amid Australians’ growing penchant for seamless digital experiences, an industry professional believes the most successful superannuation funds will be looking to leverage technology for their members in a number of ways.
The central bank has announced its latest rate decision amid stubborn inflation and increasing geopolitical tension.
Aware Super has outlined its systematic approach to corporate engagement as institutional investors increasingly assert their influence on company boards and take on an active stewardship role.
The country’s second-largest super fund has completed its fourth SFT this past financial year and welcomes almost 5,000 new members.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI First Close USD
66.99 3 y p.a(%)
2
Hills International
59.27 3 y p.a(%)
3
Acadian Global Equity Long Short Class A
32.82 3 y p.a(%)
4
CFS FC Acadian Global Equity Long Short
32.44 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
32.01 3 y p.a(%)
Add new comment