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.
“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.