APRA updates remuneration disclosure for super funds

The Australian Prudential Regulation Authority (APRA) has launched a consultation to proposed remuneration disclosure and reporting requirements for superannuation funds.

This would support the cross-industry Prudential Standards CPS 511 Remuneration which was introduced last year to strengthen remuneration practices.

APRA-regulated institutions, including super funds, would be required to publicly disclose information on how their remuneration arrangements were designed and how risk was factored into remuneration outcomes for key executives.

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This would ensure transparency on how executives were rewarded and incentivised and on consequences where risk was poorly managed.

APRA would then publish centralised statistics to provide greater comparability of remuneration outcomes across entities, supported by reporting requirements proportionate to their size and complexity.

APRA deputy chair, John Lonsdale, said: “Transparency is important to a well-functioning system. APRA’s proposed disclosure requirements will ensure investors and the community can see how key executives are rewarded, and that consequences are applied where there are poor risk outcomes.”

The consultation was open until 7 October and changes would take effect from 2023 for large entities and 2024 for smaller ones.

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