Don’t over-empower regulator – ASFA
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.
AUTHOR
Mike Taylor
Recommended for you
Melbourne advice firm Hewison Private Wealth has marked four decades of service after making its start in 1985 as a “truly independent advice business” in a largely product-led market.
HLB Mann Judd Perth has announced its acquisition of a WA business advisory firm, growing its presence in the region, along with 10 appointments across the firm’s national network.
Unregistered managed investment scheme operator Chris Marco has been sentenced after being found guilty of 43 fraud charges, receiving the highest sentence imposed by an Australian court regarding an ASIC criminal investigation.
ASIC has cancelled the AFSL of Sydney-based Arrumar Private after it failed to comply with the conditions of its licence.
