APRA intensifies scrutiny of super expenditures
The Australian Prudential Regulation Authority (APRA) has warned superannuation funds that it will be directed intensified supervision towards their discretionary expenditures around travel, entertainment and conferences.
The regulator has sent a letter to superannuation funds in which it said that its focus on expenditure was part of an ongoing suite of supervision priorities but would not necessarily include all items.
“APRA’s intent is to focus on those items of expenditure where there is potential to improve practices and outcomes across the industry. APRA’s attention will also be informed by market intelligence and matters of public interest,” the letter signed by APRA deputy chair, Margaret Cole said.
It said that engagement with a number of superannuation funds is already underway, and further work would begin shortly using data submitted for the last financial year.
Dear Industry Super, great to catch up in your Super Fund sponsored sporting boxes at MCG, etc.
Wonderful to drink and dine on the Super Members behalf.
Of course we won’t stop such Industry Super Fund spending.
Good for us bureaucrats, Good for Union Bosses and Bikies, thus must be good for Super Members, huh huh huh huh huh huh 🙁 .
Long Live Industry Super spending rorts.
Cheers APRA
I don’t have any confidence that these matters are policed effectively.
Happy to be corrected if I have this wrong, but it seemed in Senate Estimates a few months ago when Andrew Bragg probed this, he hit a brick wall because the activity occurs through the investment companies as opposed to the actual Super Trustee directly.
For example, the rather contentious news website (which I don’t think has made any money in its existence) I understand is out of the scope of APRA as it’s a part of an investment vehicle. (Nonetheless, super fund Trustees persist with it for reasons they believe are in members best interests.)….. I struggle to understand how it benefits a members retirement outcome, but this is beyond my paygrade. So whatever.
It’s an interesting topic and in my view the legislation needs to be changed to ensure that greater scrutiny and accountability can be placed.
I would have thought this would be something that would have been embraced right? 🙂