APRA lays down law to super platform trustees

The collapse of the Shield and First Guardian funds has resulted in the Australian Prudential Regulation Authority (APRA) calling on superannuation platform trustees to accelerate efforts to safeguard members investments.

The regulator confirmed it had written to platform trustees today setting out the key findings and required actions following a thematic review.

APRA’s letter:

• calls on platform trustees to lift standards relating to onboarding, ongoing monitoring and promoting member outcomes;
• outlines APRA’s observations on weaker and current better industry practices; and
• requires platform trustees to confirm Financial Accountability Regime (FAR) accountabilities; consider whether they have breached the prudential standards and obligations; and determine a time-bound action plan to lift standards.

“The fact that First Guardian and Shield managed investment schemes were made available to members by some platform trustees has exposed members to the risk of significant loss and uncertainty.” APRA deputy chair, Margaret Cole said.

“While APRA notes variation in practices across platform trustees, APRA calls on all platform trustees to address any weaknesses and accelerate efforts to lift standards.”

Cole said APRA would escalate supervision intensity to ensure that appropriate steps were being taken by trustees. “We will not hesitate to take robust regulatory action as necessary.”