Retail funds behind on MySuper approval

The number of industry funds applying for a MySuper license far outweigh the number of retail funds that have so far applied, according to figures quoted by the Australian Prudential Regulatory Authority (APRA).

APRA senior manager Gordon Walker said a total of 45 applications have been received for MySuper licenses - six retail funds, 34 industry funds, three public sector funds, and two corporate funds.

However, no retail funds had as yet been approved by APRA. Of the 19 applications approved so far, 18 of them were industry funds, and one was a public sector fund, he said.

A number of super funds had agreed to withdraw their application prior to improving on them and re-applying, Walker told the Association of Super Funds of Australia compliance summit.

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Those license applications were generic, not tailored or goodwill, he said.

Walker warned that APRA would not give lenience or an exemption from the licence although he said they did not expect any requests either.

He acknowledged that some circumstances may need further investigated though.

Funds needed to be able to show how they would satisfy MySuper criteria, Walker said.

"There doesn't need to be an exemption, there simply needs to be a discussion about how they are looking to satisfy that principle," he said.

Walker re-iterated that APRA had expected more applications so far, and had approached super funds about their intentions.