APRA confirms super funds performance review
Superannuation funds will be required to undertake an annual Business Performance Review under new guidelines issued by the Australian Prudential Regulation Authority (APRA) consistent with the recent passage of the Government’s Treasury Laws Amendment (Improving Accountability and Member Outcomes in Superannuation Measures No.1 Bill 2019).
The regulator this week wrote to all superannuation funds notifying that it has revised the relevant prudential standard consistent with the legislation including a legislated outcomes assessment.
It said that the revisions would require superannuation funds to undertake a Business Performance Review as part of their strategic and business planning processes.
The letter said funds would need to be both reflective and forward-looking in identifying improvements that could be made to enhance the sound and prudent management of their business operations, and to drive the sustainable delivery of better outcomes for members.
The letter said APRA was proposing to maintain an implementation date of 1 January, next year, meaning that the first Business Performance Review would need to be undertaken by 31 December, next year.
Recommended for you
Financial Services Council chief executive, Blake Briggs, is urging Minister for Financial Services, Stephen Jones, to take advantage of the QAR opportunity to reduce regulatory duplication and ensure advice is affordable.
Former chair of the House of Representatives’ Standing Economics Committee, Tim Wilson, is planning a return to politics after losing his seat in the 2022 federal election.
Morningstar is going to offer research ratings of funds in the $3.5 trillion superannuation sector for the first time in response to demand from financial advisers.
Treasurer Jim Chalmers has opened a consultation into the design of the annual superannuation performance test, canvassing views on a range of reform options.