Self-managed superannuation funds (SMSFs) are different and should remain under the regulatory oversight of the Australian Taxation Office, according to the SMSF Professionals' Association of Australia (SPAA).
SPAA chief executive Andrea Slattery has rejected the findings of a Super Review survey that the superannuation industry should be covered by a single regulator — the Australian Prudential Regulation Authority (APRA).
The survey, conducted during the recent Association of Superannuation Funds of Australia (ASFA) national conference in Perth, revealed that over three-quarters of respondents supported a single regulator.
However Slattery described the outcome as being "wilfully ignorant" of how the sector works".
"The simple fact is APRA's mandate under the SIS legislation is to regulate funds solely on a prudential basis," she said.
"The reason for this level of control is to ensure trustees who are removed from fund members have substantial and robust systems in place to protect those members' interests.
"This differs to SMSFs that have a more detailed and technical oversight to ensure the amounts being accumulated for members is directed to the sole purpose of building retirement savings," Slattery said.
She said that for APRA to be allowed to apply prudential principles to SMSFs would result in significant changes in non-compliance because prudential supervision was general and broad-based — something which only worked where large funds were involved due to their magnitude and scale of operation.
"It also ignores the fact that the current regulator, the Australian Taxation Office (ATO), is one of the premier government agencies that competently operates in a high volume processing environment. When you consider there are more than half a million SMSFs, then that's exactly the type of agency that's required for SMSFs," she said.
Australia’s second-largest super fund has confirmed it is expanding its presence in the UK following significant investment in the region.
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.
Add new comment