POWERED BY MOMENTUM MEDIA
APRA warns on impact of repeated performance test failures
Funds which fail the Your Future, Your Super performance test for two consecutive years will be unable to accept any new beneficiaries until they pass a future test, according to updated guidance.
In the information from the Australian Prudential Regulation Authority (APRA), it said Registrable Superannuation Entity (RSE) licensees were expected to ensure they complied with obligations to prevent new beneficiaries from holding the product on and from the day the second fail notification was received.
This would be in place until the fund had passed a future performance test.
Any contributions received from or on behalf of persons who were not holding the product before that day of the second fail notification would need to be returned.
Licensees of MySuper products were expected to ensure their stakeholders and employer-sponsors were aware that this was a possibility if the fund failed for a second time.
The regulator said it would provide a written notification to licensees of their performance test prior to publication of results at the end of August but that the gap would be short. Notice would then need to be given to beneficiaries who held the product within 28 days.
“Recognising that the timing between the running of the performance test and notification is short, APRA’s ability to provide any results in advance of publication is limited. However, provisional results will be provided to RSE licensees ahead of publication where a product appears likely to fail the test.”
AUTHOR
Laura Dew
Laura Dew is editor at Super Review. Prior to joining SR, she spent five years working at Investment Week in the UK covering asset and wealth management.
Recommended for you
In its pre-election policy document, the FSC highlighted 15 priority reforms, with superannuation featuring prominently, urging both major parties to avoid changing super taxes without a comprehensive tax review.
The Grattan Institute has labelled the Australian super system as “too complicated” and has proposed a three-pronged reform strategy to simplify superannuation in retirement.
Super funds delivered a strong 2024 result, with the median growth fund returning 11.4 per cent, driven by strong international sharemarket performance, new data has shown.
Australian Ethical has seen FUM growth of 27 per cent in the financial year to date.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
32.68 3 y p.a(%)
2
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.72 3 y p.a(%)
3
Spire Oaktree Opportunities XI First Close USD
31.36 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
29.60 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
27.64 3 y p.a(%)
