Powered by MOMENTUM MEDIA
moneymanagement logo
 
 

APRA hawkish on superannuation enforcement

APRA/super/

16 May 2022
| By Liam Cormican |
image
image image
expand image

Australian Prudential Regulation Authority (APRA) chair, Wayne Byres, says the regulator is eyeing sub-standard superannuation products and practices through a combination of the performance tests, heatmaps, intensive supervision and a “muscular” approach to enforcement.

Appearing at FINSIA's ‘The Regulators’ event, Byres said the superannuation system could be improved.

“Put simply, when it comes to superannuation, good enough isn’t good enough,” he said.

“We still have too many trustees that could do better – including, in some cases, by handing their responsibilities to someone else.”

With the Retirement Income Covenant coming into effect in July, Byres said the superannuation industry needed to turn its focus to the provision of retirement products.

“As the superannuation system matures, and an increasing proportion of Australians move into the retirement phase, much greater attention needs to be given not just to how superannuation savings are managed, but how they are accessed in retirement. This is a space ripe for innovation and new thinking.”

Byres also said APRA would be targeting two “foundational regulatory initiatives” aimed at bettering existing regulation, starting with modernising the prudential architecture.

“As financial system risks have evolved, the prudential framework has grown. In total, we now have around 150 prudential standards and practice guides, supported by a myriad of information papers, industry letters and FAQs. It could do with an overhaul.”

The second initiative was the implementation of the five-year financial data collection roadmap APRA laid out in March.

“The March roadmap sets out a plan for each industry that’s been tailored to reflect the work already underway on new data collections, the expected regulatory policy agenda, and the industry’s capacity to accommodate change.

“Again, it’s an ambitious project and we’re keen to make sure we have active and regular engagement with industry participants as we work our way through it.”

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

Significant ethical issues there. If a relationship is in the process of breaking down then both parties are likely to b...

2 weeks 6 days ago

It's not licensees not putting them on, it's small businesses (that are licensed) that cannot afford to put them on. The...

3 weeks 6 days ago

So we are now underwriting criminal scams?...

7 months ago

After last month’s surprise hold, the Reserve Bank of Australia has announced its latest interest rate decision....

3 weeks ago

WT Financial’s Keith Cullen is eager for its Hubco initiative to see advice firms under its licence trade at multiples which are catching up to those UK and US financial ...

3 weeks 4 days ago

While the profession continues to see consolidation at the top, Adviser Ratings has compared the business models of Insignia and Entireti and how they are shaping the pro...

6 days 18 hours ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND