The Government’s options paper for the reform of the regulatory environment surrounding superannuation was developed, according to the Minister for Financial Services Joe Hockey, in response to “heightened community interest in the safety of superannuation following the highly publicised negative returns of some superannuation funds”.
The issues paper canvasses options for reform in two key areas: updating the prudential and legislative framework that superannuation operates in; and fund governance, including enhancing trustee accountability to fund members.
Some of the paper’s main recommendations include:
Giving APRA the power to impose prudential standards on super funds, including to cover the investment activities of a range of types of superannuation funds; and
Establishing a universal licensing regime for super funds, including bringing superannuation fully into the Financial Services Reform (FSR) net.
A Superannuation Working Group, chaired by the former chief executive of the ANZ Banking Group Don Mercer, and involving Treasury, APRA and ASIC representatives, has been established to conduct consultations with the financial sector on the options paper and ultimately develop a legislative response. Submissions can be made to the working group until February 1, 2002.
