No one metric should be used to measure whether or not a superannuation fund can remain authorised to deliver a MySuper offering.
That is the bottom line assessment of the Australian Prudential Regulation Authority (APRA) which has placed some discreet distance between its position and that of the Productivity Commission (PC) on the issue.
Answering a question on notice during Senate Estimates, APRA said that the implementation of many of the Productivity Commission’s superannuation recommendations, such as a ‘right to remain test’, was a matter for Government.
“APRA, however, cautions against using any single measure as a sole determinant of an RSE licensee’s ongoing MySuper authorisation,” it said.
“To assess the performance of a fund, APRA uses both quantitative metrics (including product performance, subject to data availability) and a range of qualitative measures to evaluate the outcomes funds are delivering for their members.”
“APRA agrees that any fund persistently underperforming against a broad range of metrics for a prolonged period of time cannot reasonably argue that it is delivering quality outcomes to its members, and provides a strong ground for removing the ability to accept default contributions,” it said.
“Additionally, over 2020-2021, trustees will be required to submit their first annual outcomes assessment as to whether their funds are promoting the financial interests of their members. APRA considers that these assessments, in conjunction with APRA’s heatmaps, will hold trustees accountable for their performance, which was one of the outcomes sought by the Productivity Commission.”
“Where necessary, APRA will require trustees to take action to address their underperformance.”
Future Group is set to take on nearly $1 billion in funds under management (FUM) and welcome more than 100,000 new members following two significant successor fund transfers.
Insignia’s Master Trust business suffered a 1.9 per cent dip in FUA in the third quarter, amid total net outflows of $1.8 billion.
While the Liberal senator has accused super funds of locking everyday Australians out of the housing market, industry advocates say the Coalition’s policy would only push home ownership further out of reach.
Australia’s largest superannuation fund has confirmed all members who had funds stolen during the recent cyber fraud crime have been reimbursed.