POWERED BY MOMENTUM MEDIA
APRA/ASIC flag sole purpose test review
Recent incidents of superannuation funds pushing the edge of the envelope on the sole purpose test are facing intense scrutiny from both the Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC).
APRA deputy chair, Helen Rowell has written superannuation fund trustees informing that the sole purpose test is current regarded as being ambiguous and that it was the subject of discussion during the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.
“Given the questions that have arisen about the appropriate range of activities that fall within the sole purpose test, and its importance in determining the boundaries of practices that may be regarded as acting in the best interests of members, APRA intends to undertake a review, involving ASIC as appropriate, of particular cases or circumstances where compliance with the sole purpose test has been called into question,” Rowell’s letter said.
She said the aim of the review would be to develop clear principles to inform updated guidance and its implementation, as well as “identifying potential breaches where appropriate action should be taken”.
“The review may also lead to recommendations as to whether the law could be clarified to better meet the intent of the sole purpose test,” Rowell’s letter said.
The ASIC and APRA review of the sole purpose test has come amid debate in the superannuation industry about whether the offer of frequent flyer points to attract new members is compliant and possibly breaches early release rules.
Recommended for you
Super funds have built on early financial year momentum, as growth funds deliver strong results driven by equities and resilient bonds.
The super fund has announced that Mark Rider will step down from his position of chief investment officer (CIO) after deciding to “semi-retire” from full-time work.
Rest has joined forces with alternative asset manager Blue Owl Capital, co-investing in a real estate trust, with the aim of capitalising on systemic changes in debt financing.
The Future Fund’s CIO Ben Samild has announced his resignation, with his deputy to assume the role of interim CIO.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
76.97 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
76.46 3 y p.a(%)
3
UBS Solactive Global Pure Gold Miners UCITS ETF Dis USD
51.13 3 y p.a(%)
4
Global X GlobalX FANG+ ETF
45.15 3 y p.a(%)
5
Select Baker steel Gold Institutional
43.78 3 y p.a(%)
