POWERED BY MOMENTUM MEDIA
APRA seeks feedback on super financial resilience
The Australian Prudential Regulation Authority (APRA) is seeking information from superannuation trustees on their plans to maintain financial resilience and protect members’ best financial interest.
This covered the use of the operational risk financial requirement, reserving practices, protections afforded via insurance and fee setting and design.
Specifically on fee setting and design, APRA said this was likely to “continue to evolve” over the next few months in light of ongoing legal matters regarding fund reserves.
Super trustees were required to maintain sufficient financial strength, contingency planning and robust business plans to operate effectively, particularly in the unexpected event of fines or corporate restructures.
APRA executive member, Margaret Cole, said: “We want to know more about how adequately resourced trustees are, how they are making financial projections in business planning practices, and what is their provisioning for contingencies.
“The imminent change to the law regarding the use of fund reserves to pay financial penalties will cause some trustees to rethink their current structures and approach. We are particularly keen to learn more, through this consultation, about how trustees are planning to change current practices.”
Trustees were invited to submit feedback by 11 March, 2022.
AUTHOR
Laura Dew
Laura Dew is editor at Super Review. Prior to joining SR, she spent five years working at Investment Week in the UK covering asset and wealth management.
Recommended for you
The two funds have announced the signing of a non-binding MOU to explore a potential merger.
The board must shift its focus from managing inflation to stimulating the economy with the trimmed mean inflation figure edging closer to the 2.5 per cent target, economists have said.
ASIC chair Joe Longo says superannuation trustees must do more to protect members from misconduct and high-risk schemes.
Super fund mergers are rising, but poor planning during successor fund transfers has left members and employers exposed to serious risks.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
88.01 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
72.60 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
44.24 3 y p.a(%)
4
Pengana High Conviction Equities B
40.36 3 y p.a(%)
5
Pengana High Conviction Equities A
40.34 3 y p.a(%)
