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APRA super power legislation passes
Legislation giving the Australian Prudential Regulatory Authority (APRA) greater power in Australia's superannuation landscape passed through the Parliament on Tuesday night despite the Coalition voting against it.
The Superannuation Legislation Amendment (Trustee Obligations and Prudential Standards) Bill 2012 requires super fund trustees to put the interests of fund members first, identifies super fund directors' duties and gives APRA the power to make prudential standards for superannuation.
The Minister for Financial Services and Superannuation, Bill Shorten, welcomed the legislation and branded the Coalition "all talk and no walk".
"I am disappointed that the Coalition voted against legislation that raises the bar for superannuation trustees including those overseeing industry funds, corporate funds and retail funds," Mr Shorten said.
"The Coalition is all talk and no walk when it comes to superannuation governance."
The Association of Superannuation Funds of Australia (ASFA) also welcomed the legislation. President Pauline Vamos said increasing the prudential supervision of the superannuation industry would give Australian's confidence in the system.
"As an integral, and fast-growing, plank of the Australian economy it is imperative that superannuation be held to the same level of prudential supervision as other key elements of the financial system and the economy, such as banking and insurance. The new standards will enshrine requirements for APRA-regulated super funds around governance, risk management and reserves," she said.
Vamos said the development would ultimately protect Australians' retirement savings.
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