The Australian Prudential Regulation Authority (APRA) has acknowledged that it does not possess any definitive evidence to prove that “bigger is better” with respect to superannuation funds.
APRA deputy chairman Ross Jones has told a Senate Committee that while there is a “fairly universal view” that bigger is better, “there is not a huge amount of evidence to support that”.
The APRA deputy chairman’s acknowledgement with respect to a critical element of superannuation fund mergers came at the same time as he confirmed to the Opposition spokesman on Financial Services, Senator Mathias Cormann, that the prudential regulator had not specifically noted that the trustees of two key industry superannuation funds had acted in the best interests of members with respect to a merger proposal.
Under questioning about the aborted merger of Vision Super and Equipsuper, Jones was asked by Cormann, “why you (Jones) are not prepared to say that you are satisfied that all of the trustees have at all times acted in the best interests of members”.
“I think the fact that I am not prepared to say that probably answers your question,” the APRA deputy chairman said.
