The Assistant Treasurer, Senator Arthur Sinondinos has confirmed that the Australian Prudential Regulation Authority (APRA) is examining whether the investment by industry superannuation funds into a new publishing business breaches the sole purpose test.
Sinodinos confirmed the regulator's interest in the issue while being interviewed about the Government's intention to apply new standards of governance on superannuation funds, and said the funds had taken the initiative without necessarily running it past their members or being accountable to their members for it.
"And the prudential regulator is having a look at that, because they would be concerned about it," Sinodinos said. "Because, ultimately, there's a sole purpose test, which relates to the purpose for which investments are being made."
The minister said it needed to be remembered that the sole purpose of a superannuation fund was to maximise members' returns.
