The Australian Prudential Regulation Authority (APRA) has not ruled out naming laggard superannuation funds.
In a tough address to the Conference of Major Superannuation Funds (CMSF) on the Gold Coast, APRA deputy chair, Helen Rowell said that while the regulator might not be currently naming persistently under-performing superannuation funds, this would not necessary continued to be the case.
She said APRA had not named under-performing funds because of the potential negative impact on members, but added “for now”.
Rowell signalled to superannuation fund trustees attending the conference that they would soon be receiving a letter from APRA outlining the regulator’s tough new expectations.
While the Financial Advice Association Australia said it supports a performance testing regime “in principle”, it holds reservations about expanding this scope to retirement products.
In a Senate submission, the Financial Services Council said super funds should be able to nudge members on engaging with their super and has cautioned against default placements.
The Joint Associations Working Group, which counts FSC in its ranks, has issued an urgent warning to the government.
Senator Jane Hume will join the speaker lineup at the inaugural Australian Wealth Management Summit.
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