While the Federal Government opted to close down the separately-mandated Superannuation Complaints Tribunal (SCT), the Australian Prudential Regulation Authority (APRA) has signalled it is prepared to establish a separate division to cover regulation of superannuation.
In its formal response to the Government-initiated APRA capability review, the regulator signalled its agreement to a recommendation that it create “a Superannuation Division, headed by an Executive General Manager”, which would have a key focus of monitoring the overall performance of the superannuation system for members.
APRA said it supported the recommendation which would be implemented as part of an organisation restructure.
The regulator also signalled its acceptance of the review’s recommendation that it “embed and reinforce its increasing focus on member outcomes, including publishing objective benchmarks on product performance and developing a superannuation performance tool to replace PAIRs [Probability and Impact Rating System] by the end of this year”.
APRA said its work on performance benchmarking and data collection would be a priority.
The regulator also agreed that its member outcomes mandate should be more explicit and supported this occurring via the Government issuing a Statement of Expectations.