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(December-2003) One of the regulator’s driving forces
According to our panel, the activities of the Australian Prudential Regulation Authority (APRA) had a huge impact on the lives of trustees and super fund executives in 2003 and should have even more influence in the coming year as APRA begins implementing its new licensing regime.
But with a host of top management changes having taken place at APRA in recent months, there was much debate about which APRA executive has been most influential. In the end, the panel chose Charles Littrell because he has been the most outspoken and the voice detailing the looming licensing requirements.
One panel member suggested that the day-to-day auditors are the real force behind APRA, adding: “There will be people at APRA who may say ‘Littrell talks a lot but we do all the work’. He is one of the driving forces, not the only one.”
For his part, Littrell says: “Looking back on the past year, I probably had more to say than most [people at APRA] but I wouldn’t say that I was most influential.”
Nonetheless, it’s been a busy time for APRA which has worked hard to make its supervisory culture more proactive and more able to pre-empt problems.
“The HIH debacle and ensuing Royal Commission obviously had an influence. But APRA also turned five years old. It was time to look at itself,” says Littrell.
In addition to working with the Government over the past year to develop the new Safety in Super regime, APRA put out what Littrell believes was a “landmark” paper on investment in February after extracting seven years of superannuation history from its database.
“The industry also saw more of APRA than they are used to … and next year will be a big year for super, subject to what the Government does,” says Littrell. “There will be stronger supervision but I don’t think this will affect funds that already have their act together.”
Over the next two to three years, Littrell expects to see stronger risk management emerging amongst super funds, noting that the process should be similar to that of the insurance industry’s. “When they went through the process, over 90 per cent of insurers got their licences. We expect a similar outcome in super. But a fair amount who did get their licences had to improve their processes first… some even before they sent in their applications.”
Littrell says he doesn’t have much of a personal life. “I spend time at work and time with my family.” And on his hobbies, he adds: “I am the sort of guy who reads financial text books and financial research.”
AUTHOR
Zilla Efrat
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