Minister for Financial Services and Superannuation Bill Shorten claims he has won his war against "rogue superfund directors", with the Superannuation Legislation Amendment (Trustee Obligations and Prudential Standards) Bill 2012 passing through the lower house yesterday.
The bill implements changes recommended in the Cooper Review that increase the power of trustees, members of super funds, and the Australian Prudential Regulation Authority (APRA).
Under the bill, trustees will be required to put fund member interests first, directors of superannuation funds will be held accountable for their decisions, and APRA will have the power to make prudential standards for superannuation.
Shorten is a long supporter of superannuation reform, flagging his allegiance to the changes in December 2010.
"Today this government passed legislation through the lower house that gives the regulator and members new powers to go after rogue superfund directors," Shorten said.
Shorten said giving further power to APRA – which will come into affect the day after Royal Assent – will close a regulatory gap.
He said, however, that the fight is not over and he will be bringing further changes before parliament, including additional disclosure requirements for trustees and enhanced data collection and publication powers for APRA.
Enhancements to trustee obligations will come into affect 1 July 2013.
