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Administrators back licensing
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Australia’s three major superannuation administrators have called for a licensing regime that would place them on the same footing as Registrable Superannuation Entities.
In a joint submission to the second phase of the Cooper Review, the three administrators — Pillar, Australian Administration Services and SuperPartners — said superannuation administration was a critical function within the industry, and as such they believed providers were “systemically significant institutions”.
“We would therefore strongly recommend that all institutions providing superannuation administration functions are subject to a licensing regime appropriate for superannuation administration providers, along the lines of the Australian Prudential Regulation Authority’s Registrable Superannuation Entity regime,” the joint submission said.
It said the consequent licensing regime should establish minimum standards with respect to capital adequacy, risk management, fit and proper and adequacy of resources.
“A licensing regime will not only benefit the administration industry through lifting professional standards and investment, it will also deliver synergies through the alignment of obligations placed on trustees and the institutions providing administration services,” the submission said.
It claimed this was important to ensure both a level playing field and, most critically, the protection of Australia’s future retirement funds.
AUTHOR
Mike Taylor
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