APRA’s message to super funds – get better or get out
The Australian Prudential Regulation Authority (APRA) has again encouraged superannuation funds to consider mergers or exits if they cannot deliver improved member outcomes.
APRA deputy chair, Margaret Cole has used the regulator’s release of a position paper on delivering member outcomes into the future to emphasise that standing still is not an option for superannuation trustees.
She said that challenges around efficiency, growth and competitive positioning are significantly influencing the scope for trustees to maintain and improve outcomes for members over the longer term.
“When addressing these challenges, trustees must carefully consider the investment required to meet business and risk imperatives, such as improving operational and cyber resilience and lifting support to members approaching retirement, as well as the need to ensure expenditure is in the best financial interests of members,” Cole said.
“Through this process, it may become clear to some trustees that while they can deliver short-term member outcomes, it is unlikely they will be able to maintain and improve for their members over the longer term.
“In these circumstances, trustees should actively consider whether members would be better served by another fund or a merger of funds,” she said.
Cole noted that over the last five years some trustees have embraced these challenges and have fulfilled their responsibility to members by repositioning for the future.
“During this period, the number of funds has reduced from 158 to 87.
“Our role as the prudential regulator is not to prescribe the shape or composition of the industry, nor does APRA have a statutory power to require funds to exit the industry.
“Nonetheless, consistent with APRA’s approach over many years, APRA will continue to engage with individual trustees bilaterally to ensure they are appropriately considering the challenges they are facing in delivering for their members into the future,” Cole said.
Considering the many failings of both APRA and ASIC the exact same thing could be said to them.
1,000,000% true.
Not could be said, SHOULD be said to them.
But hey no one in Canberra’s bureaucratic bubble is ever held to account for their poor actions or the failings of the bureaucratic organisations they run.
Like Robodebt, suicides caused, 500,000 flagrantly false debts raised, Centrelink and debt collectors hassling innocent people constantly, over a $$BILLION in compensation paid from our taxes, Royal Commission finding 17 people should face charges / action.
Those 17 scum bags remain a Govt secret.
And not one single politician or bureaucrat has faced any real consequences.
The Canberra SWAMP is disgustingly corrupt, pathetically useless and totally unaccountable.
This week they’re too busy nailing Optus management to the wall due to failed 000 calls.
Masters of avoidance and distraction.
Some might say that this is a bit rich coming from them.
Net result fewer and fewer super funds equaling less and less competition. Failing the APRA test might mean the long-term outcome for their members might be superior, who knows given time we might see. Just a thought, could it be some of theses funds don’t engage in the same practices some of those who pass the test do?