APRA has published a series of letters regarding superannuation regulation changes.
APRA’s directions power
The Australian Prudential Regulation Authority (APRA) has welcomed the passage of legislation granting it stronger powers to take action against the trustees of underperforming superannuation funds.
The Treasury Laws Amendment (Improving Accountability and Member Outcomes in Superannuation Measures No 1) Act 2019 provides APRA with a comprehensive directions power. It also gives APRA the power to take civil penalty action against trustees and their directors for breaching their obligations to members, including the duty to act in the best interests of members.
Implementation of Protecting Your Super legislative amendments
APRA has published a letter, and accompanying frequently asked questions, to all registrable superannuation entity (RSE) licensees about the implementation of the Treasury Laws Amendment (Protecting Your Superannuation Package) Act 2019.
APRA and ASIC have published a joint letter to all registrable superannuation entity (RSE) licensees to reinforce the importance of ensuring fees charged to members are in line with their best interests.
In the letter, the regulators call on RSE licensees to review their governance, risk management and oversight processes to ensure that only authorised and appropriate fees and other charges are deducted from members’ superannuation accounts, and to promptly address any identified weaknesses or concerns.