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.
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.
BlackRock boss Larry Fink praised Australia’s superannuation system in his annual chairman’s letter.
The prudential regulator has announced it will publish new expenditure data of superannuation funds, providing details on expenses like advice, director remuneration, and payments to unions.
Affirming the UK’s growing attractiveness as an investment destination, a number of Australia’s largest investors recently joined the UK Foreign Secretary for an exclusive briefing in Canberra to discuss further opportunities for trade and growth.
The specialist superannuation law advisory practice is set to wind up, with managing partner Jonathan Steffanoni planning to bring a new offering to market.
Add new comment