POWERED BY MOMENTUM MEDIA
APRA needs governance powers
The Federal Treasury has strongly defended giving the Australian Prudential Regulation Authority (APRA) powers to make regulations around the independence of superannuation fund trustees under the Government's proposed changes to super fund governance arrangements.
Answering questions on notice file in the Parliament last month, the Treasury has sought to defuse suggestions that the Government's Superannuation Legislation Amendment (Trustee Governance) Bill 2015 steps outside the norm in granting such powers to APRA and has pointed to the regulator having similar powers with respect to banks and insurers.
"The proposed regulatory changes are designed to complement the existing prudential framework to ensure that the governance of the superannuation industry reflects the growing importance of superannuation in the broader Australian economy," the Treasury response said.
"The powers in the Bill for APRA to determine a person independent or not independent, reflect the practical reality that it is not possible to clearly address in the legislation all situations that may arise in practice; it is essential that APRA is able to respond to unusual circumstances to provide the necessary certainty to industry," it said.
"APRA has powers, in relation to the other regulated industries, to issue a direction relating to the appointment and removal of directors," the Treasury response said.
The response suggested the empowerment of APRA was necessary to address possible structures or relationships that might emerge in the superannuation industry over time.
"Having a regulation making power will enable the Government to provide certainty to the industry in situations where it is clear a group of directors are independent and remove the need for industry to seek a determination by APRA in these situations," the Treasury response said.
Recommended for you
Governor Bullock took a more hawkish stance on Tuesday, raising concerns over Trump’s escalating tariffs, which sent economists in different directions with their predictions.
Equity Trustees has announced the appointment of Jocelyn Furlan to the Superannuation Limited (ETSL) and HTFS Nominees Pty Ltd (HTFS) boards, which have oversight of one of the companies’ fastest growing trustee services.
Following growing criticism of the superannuation industry’s influence on capital markets and its increasing exposure to private assets, as well as regulators’ concerns about potential risks to financial stability, ASFA has released new research pushing back on these narratives.
A US-based infrastructure specialist has welcomed the $93 billion fund as a cornerstone investor.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Global X GlobalX FANG+ ETF
33.51 3 y p.a(%)
2
Spire Oaktree Opportunities XI Second Close
32.68 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.62 3 y p.a(%)
4
Spire Oaktree Opportunities XI First Close USD
31.36 3 y p.a(%)
5
Fidante Credit Suisse Global Private Equity
29.60 3 y p.a(%)
