Improving superannuation transparency to provide members with investment performance insights and increasing focus on retirement outcomes are among APRA’s strategic priorities for 2023–24.
Outlining its priorities for 2023–24, the prudential regulator said its work in super will support improved member outcomes. Work will also be informed by the recommendations from the Financial Regulator Assessment Authority (FRAA).
The FRAA report on APRA was released in July and recommended strengthening risk identification in the super industry and more forward-looking regulation.
“APRA should increase its efforts to identify risks in superannuation, including emerging and systemic risks, and their potential consequences. APRA could then better perform its supervisory activities and recovery and resolution planning,” the report said.
In the super space in the year ahead, APRA said that it will look to improve transparency to provide members with enhanced insights about investment performance.
It will also increase its focus on retirement outcomes in line with the Retirement Income Covenant that was launched last year.
Over the planned horizon, APRA will:
APRA chair, John Lonsdale, said: “Among the considerations shaping the updated approach are rising interest rates and high inflation, geopolitical instability, the growing threat of cyber attacks and scams, and the increased frequency of natural disasters.
“APRA has also responded to lessons learned from the collapse of Silicon Valley Bank and the takeover of Credit Suisse in March this year, as well as the findings of the Financial Regulator Assessment Authority on APRA’s approach to supervising the superannuation industry.”
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