The Association of Superannuation Funds of Australia (ASFA) has expressed deep concern at Government proposals to significantly add to the powers of the Australian Prudential Regulation Authority (APRA) without explanation.
In a submission to the Treasury this week, ASFA called for further examination of the issues and consultation with the industry before the Government moves ahead with further empowering APRA.
ASFA’s concerns relate to proposals to remove the need for ministerial consent with respect to APRA decisions for a number of actions under the Superannuation Industry (Supervision) Act, including the cancellation of Registered Superannuation Entity licences, the removal of trustees and the freezing of assets.
ASFA warns that this change would enable APRA or the Australian Taxation Office in respect of self managed superannuation funds to stop a superannuation entity from operating without the requirement of written consent from the minister.
It said that ministerial consent provided a final check on APRA before it made a very important decision, with the minister offering a “sober second thought” before an important decision was taken.
