The Australian Prudential Regulation Authority (APRA) has signalled it would like to have a directions power over the superannuation industry, similar to that it employs with respect to banks and other financial institutions.
APRA's desire for more powers came at the same time as it revealed that three or four superannuation fund trustees were the subject of oversight by the regulator for "material shortcomings"
It said those shortcomings related to governance and conflict management and weaknesses in risk management standards and controls.
APRA's desire for the directions power were revealed to Senate Estimates, with APRA deputy chair, Helen Rowell confirming under questioning that the regulator believed a strengthening of its powers in key areas would be useful.
She said that, in particular, the introduction of a broader directions power such as it had over other industries would help, alongside powers to approve changes of ownership.
Amid a challenging market environment, three super fund CIOs have warned against ‘jumping at shadows’.
The professional body is calling for the annual performance test to transition to a two-metric test, so it better aligns with the overarching duty of super fund trustees to act in the best financial interests of their members.
AustralianSuper, Rest, and HESTA agree on the need to retain and enhance the test, yet they differ in their perspectives on the specific areas that warrant further refinement.
Australia’s second-largest super fund has confirmed it is expanding its presence in the UK following significant investment in the region.
As advisers on superannuation strategies and products, we need to know which funds are being investigated for shortcomings don't we? Even if we just put a watch on them and wait until the investigations are complete, shouldn't we have immediate access to this information?
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