Enhancing Australia’s superannuation system, a vision of a sustainable future: APRA's Helen Rowell

The Australian Prudential Regulation Authority (APRA) has today released a speech, ‘Enhancing Australia’s superannuation system: a vision of a sustainable future’, delivered by deputy chairman Helen Rowell to the 2017 ASFA Conference in Sydney this morning.

In her speech, Rowell presented a vision for a stronger superannuation system that meets the ongoing needs of its members, and explained how changes to the prudential framework will help to deliver this.

Mrs Rowell’s comments included: 

• ‘APRA is also taking steps to make sure that the prudential framework supports trustees delivering quality outcomes for superannuation fund members, complementing the Government’s proposed reforms. We will shortly release a consultation package outlining proposed revisions to the prudential framework, including changes to promote greater transparency, especially around expenditure, and implement member outcomes assessments for all funds.’
• ‘…the changes proposed in our upcoming consultation package are designed to put pressure on poor performers – irrespective of industry segment – to lift their game or, if the needed improvement is not possible within a reasonable timeframe, to gracefully exit the industry.’ 
• ‘…at what point does the level of choice become more a headache than a help? It seems legitimate to ask why the industry offers members an average of nearly 200 investment options when many funds have a significant proportion of members in their default MySuper products and hence relatively few members in each o>f the many choice investment options on offer.’
• ‘Our preliminary analysis of outcomes across the industry using a wide range of metrics suggests, however, that there may be some correlation between enhanced member outcomes and board composition. The trustees with outcomes at the better end of the industry, on average, appear to be those that have appointed independent or non-affiliated directors.’

The full speech is available on the website at: 
http://www.apra.gov.au/Speeches/Pages/Enhancing-Australias-superannuation-system.aspx