No one metric should be used to measure whether or not a superannuation fund can remain authorised to deliver a MySuper offering.
That is the bottom line assessment of the Australian Prudential Regulation Authority (APRA) which has placed some discreet distance between its position and that of the Productivity Commission (PC) on the issue.
Answering a question on notice during Senate Estimates, APRA said that the implementation of many of the Productivity Commission’s superannuation recommendations, such as a ‘right to remain test’, was a matter for Government.
“APRA, however, cautions against using any single measure as a sole determinant of an RSE licensee’s ongoing MySuper authorisation,” it said.
“To assess the performance of a fund, APRA uses both quantitative metrics (including product performance, subject to data availability) and a range of qualitative measures to evaluate the outcomes funds are delivering for their members.”
“APRA agrees that any fund persistently underperforming against a broad range of metrics for a prolonged period of time cannot reasonably argue that it is delivering quality outcomes to its members, and provides a strong ground for removing the ability to accept default contributions,” it said.
“Additionally, over 2020-2021, trustees will be required to submit their first annual outcomes assessment as to whether their funds are promoting the financial interests of their members. APRA considers that these assessments, in conjunction with APRA’s heatmaps, will hold trustees accountable for their performance, which was one of the outcomes sought by the Productivity Commission.”
“Where necessary, APRA will require trustees to take action to address their underperformance.”
Michael Lovett, who left the investment firm just three months after launching its Vanguard Super offering, has taken up a chief executive role at an Australian asset manager.
The Central Bank of Ireland has granted the approval of Equity Trustees’ exit from its Irish operations, with the transaction expected to be complete on 30 April.
Super returns continued to climb in March, raising hopes of delivering double-digit returns by June depending on the performance of this next quarter.
The dedicated super fund for emergency services and Victorian government employees is under fire for unpaid entitlements to transport employees, which could exceed $40 million.
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