Superannuation under-performers on notice from APRA

The Australian Prudential Regulation Authority (APRA) has signalled that it intends intensifying its scrutiny of underperforming superannuation funds with the likelihood that more may be removed from the industry.

The regulator’s intensified approach was revealed by APRA chair, Wayne Byres who used a speech to a Sydney forum to reference APRA increased powers and its ability to act against underperforming funds.

He said that, previously, and before APRA had received its increased powers it had worked with the industry to adjust to the comprehensive set of new principles-based requirements.

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“More recently, however, we have sharpened our attention on the under-performers, something that will significantly intensify from here on,” Byers said.

He said that previous legislative weaknesses had been rectified and that the new powers afforded to APRA were game changers.

“We are now in a world where we are asked to establish performance benchmarks for superannuation funds and remove from the industry those that do not meet them. It takes APRA into new territory, but one we are now better equipped to embrace,” Byers said.


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Can't help but think if APRA did their job for the past 10 years and made under performing funds merge over the past 10 years then most of the 'grandfathered commission' debate would be none existent.
Maybe APRA should compensate the members of under performing funds for excess fees and loss of performance for not acting sooner.

What has commissions got to do with performance?

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