APRA proposes tougher scrutiny on super fund expenditure
Superannuation funds have been placed on notice that the Australian Prudential Regulation Authority (APRA) wants to apply greater scrutiny to the way in which they expend member money.
The regulator has written to superannuation funds announcing a consultation process around its desire to force funds to give more detail on expenditures including naming service providers and any third-party beneficiaries.
The APRA move would appear to capture the advertising relationship between industry funds and Industry Super Australia around its compare the pair campaign.
APRA said it was initially proposing to publish the following information:
- total expenses for the industry by category and by internal, related outsourced and non-related outsourced arrangements for administration and operating expenses and for investment expenses;
- total expenses at individual fund level by category, including expenditure for marketing and sponsorships, industrial bodies, related parties, director and executive remuneration, and political donations by payee or service provider;
- total expenses with the name of the service provider where the provider is a promoter (such as a third party that receives a benefit for marketing a fund); and
- additional aggregated asset allocation data for fund investments in property and infrastructure, alternative strategy funds, listed equity and private equity. APRA will seek trustee feedback on publishing the data at an individual fund level as well.
Commenting on the move, APRA Deputy Chair Margaret Cole said: “These proposals represent an important step forward in achieving greater transparency in superannuation.”
“It is APRA’s aim to publish as much of the data that we collect as possible, especially where there is a strong public interest in having access to high quality industry data that is comparable across funds.
“Under these proposals, members would have a clearer and more detailed picture of how their money is being spent and invested, while trustees would be further compelled to remain closely focused on improving member outcomes,” Cole said.
What’s the matter, APRA? Disn’t get invited to the HostPlus corporate box for the Grand Final this year?
Guarantee Industry Super fight this til the death.
Guarantee APRA will back down to Industry Super’s fight.
Hey APRA maybe check how much is spend on HIDDEN COMMISSIONS for Intra Fund Sales.
And how many Industry Super members are paying these HIDDEN COMMISSIONS For No Service
Better late than never I suppose, but where was APRA on this 20 years ago?
Margaret Cole and APRA should be applauded for attempting to ensure robust measures are in place.
Hopefully a more transparent process can assure Australians certainty in retirement over the long term but also a fairer, more accurate and comparable system is in place across all superannuation solutions.
Maybe, albeit more than a decade too late.
Industry super fund cars running union lackeys about the place, corporate boxes, political ad campaigns, all a breach of the sole purpose.
Using related parties to provide “services” to the super fund to benefit the unions and/or union bosses that take from the members funds is a breach of fiduciary duty by the trustee which is a criminal offence.
All of it corrupt conduct.
Hayne thought of this was just fine. What a tosser.
Margaret Cole and APRA are a complete joke. What’s the penalty a slap with a wet lettuce?
Given APRA has never imposed a single penalty of any type on any Superfund in Australia I’m pretty sure Super Funds are laughing at this.
Having first-hand experience with dealing with APRA and Banks, I know APRA sees their Super fund obligations as a mere distraction from their primary role of keeping Banks and Credit Unions solvent.
The Superannuation Industry Industry in Australia is like the Wild West working on systems of bribe like payments and little to no regulation. Heaven help Australians when Financial Advice reforms are unleashed on Australians.