The Australian Prudential Regulation Authority (APRA) has signalled it would like to have a directions power over the superannuation industry, similar to that it employs with respect to banks and other financial institutions.
APRA's desire for more powers came at the same time as it revealed that three or four superannuation fund trustees were the subject of oversight by the regulator for "material shortcomings"
It said those shortcomings related to governance and conflict management and weaknesses in risk management standards and controls.
APRA's desire for the directions power were revealed to Senate Estimates, with APRA deputy chair, Helen Rowell confirming under questioning that the regulator believed a strengthening of its powers in key areas would be useful.
She said that, in particular, the introduction of a broader directions power such as it had over other industries would help, alongside powers to approve changes of ownership.
A member of the super fund has approached ASIC to investigate potentially misleading or deceptive representations by UniSuper regarding the holdings of its sustainable portfolios.
The median growth fund delivered 1.9 per cent in March, adding to the “stunning” rally that has seen super funds gain 11 per cent since November.
Vanguard has affirmed its support for the current super performance test, emphasising the importance of keeping the process straightforward.
While some superannuation funds have gone down the route of internalisation, others say they favour ‘smart partnering’ with external managers for diversification appeal.
As advisers on superannuation strategies and products, we need to know which funds are being investigated for shortcomings don't we? Even if we just put a watch on them and wait until the investigations are complete, shouldn't we have immediate access to this information?
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