Some 22 MySuper products have closed, merged or left the market since the introduction of the heatmaps, according to the Australian Prudential Regulation Authority (APRA).
In an opening statement to the Senate Economics Legislation Committee, APRA chair, Wayne Byres, said the heatmaps had first been introduced in 2019 and had since been complemented by the heatmaps for Choice products.
Between them, the two heatmaps covered $1.2 trillion in assets under management.
“The heatmaps work to increase transparency of superannuation product performance and intensify the spotlight being shone on underperforming funds,” said Byres.
“Since the publication of the first MySuper heatmap in 2019, 22 MySuper products, most of which were underperforming, have closed, merged or otherwise left the market. Millions of MySuper members have also benefitted from fee reductions.”
The heatmaps were complemented by the Government’s annual performance test which was introduced last year and Byres said the combination of the two tests were “driving an acceleration” in reduced fees, improved investment strategies and removal of weaker products from the industry.
Since appearing before the committee last, in October 2021, Byres added APRA had also taken formal enforcement action against two superannuation trustees. These were accepting a court enforceable undertaking from AMP Super and imposing licence conditions on the trustees of Christian Super and EISS.
“As with all of APRA’s work in superannuation, these enforcement actions have the same objective: to strengthen the protection of, and improve the outcomes for, superannuation fund members.”
