The Australian Prudential Regulation Authority (APRA) has expressed its support for the government's “Your Future, Your Super” reforms, particularly clear benchmarks that would sharpen and strengthen the regulator's work to protect and improve outcomes for superannuation members.
APRA stated that turning the “best interests duty” into the best “financial interests duty” and increasing the transparency of trustee expenditure would sharpen trustees' obligations and leverage the enhanced reporting requirements that the regulator has been working to implement.
“As the prudential regulator for superannuation, APRA's primary mandate is to protect the interests of members by ensuring outcomes for superannuation members are at the forefront of decision-making by trustees, and that trustees possess the skills, experience and processes in place to do this effectively,” said APRA deputy chair Helen Rowell.
The reforms would strengthen the current legislative and prudential frameworks that govern the complex superannuation system and its supervision by APRA and other regulators, Rowell added.
APRA is working with the Treasury, the Australian Taxation Office (ATO), and the Australian Securities and Investment Commission (ASIC) regarding these reforms. It also confirmed that it will assist the Senate Economics Legislation Committee during its deliberations.