POWERED BY MOMENTUM MEDIA
APRA moves ahead of legislation on outcomes test
The Australian Prudential Regulation Authority (APRA) has signalled it does not intend on waiting for the Government’s superannuation legislation to pass the Parliament by today releasing a set of new and enhance prudential requirements for superannuation funds, including an outcomes test.
In doing so, APRA deputy chair, Helen Rowell acknowledged that the regulator was moving ahead of the passage of the Government’s legislation intended to underpin the outcomes test - the Treasury Laws Amendment (Improving Accountability and Member Outcomes in Superannuation Measures No.1) Bill 2017.
“APRA’s proposals are consistent with the outcomes assessment proposals in the Bill, and are being introduced now to maintain industry momentum towards delivering improved outcomes for members,” she said.
Rowell said APRA would review whether amendments were needed to the prudential framework requirements if the Bill was passed by Parliament in future.
The APRA deputy chair also emphasised APRA’s strong support for the other reforms contained in the Bill and, in particular, the enhanced directions powers for APRA, the strengthened MySuper authorisation and cancellation provisions, and the requirement for APRA to approve changes of ownership of RSE licensees.
“These new policy proposals address weaknesses in the current superannuation regulatory framework and would greatly assist APRA in driving the superannuation industry towards addressing underperformance and improving member outcomes,” she said.
Rowell’s statement said APRA’s finalised package of measures is the culmination of extensive industry engagement that commenced in August 2017, and includes amendments to the original proposals taking into account the feedback received during consultation.
The commencement date for the new measures had been set as 1 January 2020, to provide industry with sufficient time to meet the new requirements.
Recommended for you
First Nations Australians have faced systemic barriers accessing super, with rigid ID checks, poor service, and delays compounding inequality.
“Slow and steady” appears to be the Reserve Bank’s approach to monetary policy as the board continues to hold on to its wait-and-see method.
AFCA’s latest data has shown a decline in complaints relating to superannuation, but there is further work to be done, it has warned super funds.
Limited exposure to fossil fuel companies has positively impacted the performance of Australian Ethical’s balanced and growth funds, the super fund says.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom 465 Calder Road Calder
96.54 3 y p.a(%)
2
DomaCom DFS Mortgage
85.26 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
78.55 3 y p.a(%)
4
BetaShares Crypto Innovators ETF
50.39 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
47.50 3 y p.a(%)
