The Australian Prudential Regulation Authority (APRA) today issued its submission to the Productivity Commissions National Competition Policy review of the Superannuation Industry (Supervision) Act and certain other Superannuation Legislation.

APRAs CEO, Graeme Thompson said, As prudential supervisor of superannuation funds since mid 1998, APRA has a very close interest in the issues being considered by the Commission. We welcome this opportunity to comment on the legislation that has governed the structure, management and supervision of superannuation funds in Australia for the past several years. A wide-ranging and independent review of this type is very timely. 

There have been a number of improvements to the supervisory framework over recent years. APRA has, in particular, commenced a major project to improve the quality and timeliness of information provided to us by funds. It is, however, our firm view that further, more radical changes are needed if superannuation is to be supervised as effectively as the community rightly expects.

APRAs submission summarises the current supervisory framework. It outlines the areas where APRA plans to strengthen supervision within the current legislative structure. It also comments on the on-going suitability of that structure and summarises APRAs priorities for medium and long-term reform. Detailed proposals are yet to be developed, but implementing such reforms would almost certainly require changes in legislation.

Key areas where APRA believes reforms could deliver a more robust and secure superannuation industry for the Australian community include:

• better information provided to APRA;
• stricter guidelines on funds investment portfolios;
• wider powers for APRA to seek information directly from third-party service providers; 
• reassessment of minimum capital requirements in superannuation; and
• broader licensing arrangements.

A copy of APRAs submission to the Productivity Commission can be found on the APRA website (www.apra.gov.au/policy).

 

For further information contact:

Gloria Peterson Public Affairs Manager 02 9210 3385 or 0419 250 286