The review found the prudential framework had materially lifted industry practices in key areas as governance, risk management and outsourcing. But it also highlighted the need for APRA to continue strengthening prudential requirements in several areas, including board appointment processes, management of conflicts of interest and life insurance in superannuation.
APRA Deputy Chair Helen Rowell said it was important that the prudential framework continued to evolve as the industry developed and regulatory priorities changed.
“The Stronger Super reforms deliberately focused on ensuring superannuation trustees that often manage billions of dollars on behalf of members had the necessary frameworks in place to effectively administer the fundamentals of operating their business,” Mrs Rowell said.
“As the industry has matured and lifted its practices, we have shifted our emphasis to ensuring trustees are focused on enhancing member outcomes, especially with last December’s package of reforms.
“We are already taking steps to strengthen the prudential framework in many of the areas highlighted by the review, and we will look to make further changes to incorporate its findings as we progress our superannuation policy priorities. This will include consideration of measures to address relevant recommendations in the financial services Royal Commission report and the report on the Productivity Commission’s superannuation review.”
Mrs Rowell recently announced APRA’s intention to use to more forcefully hold superannuation trustees and directors to account, as well as
Copies of the review’s findings are available on APRA’s website at:
