In his inaugural speech to the Senate Economics Legislation Committee, APRA chair John Lonsdale has told the committee it is focused on addressing superannuation fund underperformance.
Lonsdale, who took over as chair from Wayne Byres at the end of October, said APRA’s focus was on fund underperformance and ensuring trustees were focused on member interest.
“As the new chair, I want to ensure APRA continues to protect the financial wellbeing of the Australian community with a strong and stable financial system.
“The challenges in front of us are significant – a rapidly shifting macro-economic environment, rapid technological development that challenge business models and regulation, cyber threats, insurance affordability pressures, climate change and improving the performance of our superannuation system to name a few.”
Looking specifically at super, he said a review of the Your Future, Your Super reform was underway which would give stakeholders an opportunity to discuss possible enhancements to the performance test which APRA said “makes good sense”.
The past test earlier this year had seen four MySuper products closed to new members which was described as positive change.
“We have seen a steady flow of trustees acknowledging that their members would be better placed in the hands of another, better performing trustee and this consolidation is driving costs down and seeing more members in better performing products,” Lonsdale said.
In December, it would publish its fourth super heatmap which would add to transparency around fund performance and fees.
It would also release a number of consultations for the super industry on superannuation transfer planning, strengthening financial resilience, and investment governance over the coming months.
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.