APRA hits ‘failed’ Christian Super with license conditions
One of the 13 superannuation funds which failed the Australian Prudential Regulation Authority’s superannuation performance test, Christian Super, has had additional license conditions imposed by the regulator.
In doing so, APRA said the measure was to protect the best financial interests of the fund’s members.
“The new conditions are designed to address concerns arising from APRA’s investigation into Christian Super’s investment oversight, governance and strategic decision-making,” APRA said in a statement. “They are also aimed at rectifying Christian Super’s persistent investment underperformance, which culminated in the fund’s MySuper product failing the first annual performance test in August this year.”
“Under the terms of the new licence conditions, which take effect immediately, Christian Super is required to implement a strategy to merge with a larger, better performing fund by 31 July 2022, and report to APRA if the merger has not been executed by that date. In doing so, Christian Super is required to engage an independent expert to ensure its merger decision takes into account the best financial interests of members, consistent with its duties under superannuation law.”
Commenting on the move, APRA Member Margaret Cole said: “Christian Super has a legal obligation to protect the best financial interests of its members. In light of its ongoing underperformance, APRA’s assessment is that the optimum way for Christian Super to do this is to move its members to a better performing and more sustainable product as soon as possible.
“These new licence conditions are designed to set out a clear path for Christian Super to achieve this, while also ensuring the trustee obtains independent advice and reports to APRA on its progress before making a go-ahead decision for these members,” Cole said.