“For the purposes of superannuation safety, fund members are more likely to choose a registered fund managed by a trustee that has already been granted its licence,” he said.

APRA has assured trustees that the criteria used in the application process will not alter to accommodate any new operating standards or revisions to existing standards, providing no incentive to delay application until the end of the transition period in mid-2006.

Under reforms to the prudential framework for superannuation introduced under the Superannuation Safety Amendment Act 2004 on 1 July this year, all trustees are required to obtain a licence and register their Registrable Superannuation Entity (RSE) with APRA by 30 June 2006.

Conversely, Mr Jones warned that APRA had no discretion to extend the transition period.

“There are serious penalties for operating without a RSE licence and/or for operating a RSE that has not been registered after that date,” he said.

Mr Jones also highlighted the fact that APRA has the right to refuse to accept any application for a RSE licence at any time during the final six months of the transition period.

“It is in the best interests of trustees and the members of the entities under their trusteeship to consider making an early application.”

For further information, visit APRA’s website at www.apra.gov.au, or contact APRA on (02) 9210 3344 or by email at superannuationlicensing@apra.gov.au

The Australian Prudential Regulation Authority (APRA) is the prudential regulator of the financial services industry. It oversees banks, credit unions, building societies, general insurance and reinsurance companies, life insurance, friendly societies, and most members of the superannuation industry.APRA is funded largely by the industries that it supervises. It was established on 1 July 1998.APRA currently supervises institutions holding approximately $1.8 trillion in assets for 20 million Australian depositors, policyholders and superannuation fund members.