Australia’s superannuation regulator calls for more, better consolidation
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Australia s outgoing top regulator for superannuation funds called for continued and more efficient industry consolidation, in pursuit of economies of scale.
Helen Rowell, deputy chairwoman of the Sydney-based Australian Prudential Regulation Authority, in a speech Wednesday to the Australian Institute of Superannuation Trustees, said, Larger funds are better placed to deliver stronger investment performance and lower fees, with scale an increasingly important determinant of member outcomes.
Speaking just over a month before she s set to hand off responsibility for superannuation oversight, after eight years, to APRA member Margaret Cole and take up oversight of Australia s insurance industry, Ms. Rowell noted the considerable progress in consolidation during her tenure.
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Industry fund advertising in APRA’s sights By Sarah Kendell 19 May 2021
The prudential regulator has confirmed it’s conducting an investigation into how super funds justify promotional spending as being in member best interests, following sharp criticism from Liberal backbenchers around industry fund advertising and media deals.
Addressing the Conference of Major Superannuation Funds on Wednesday, APRA deputy chair Helen Rowell said the prudential regulator was currently conducting a review of trustee promotional spending and how this was contributing to member outcomes.
“It is important that regulators continue to ensure the multi-trillion-dollar pool of super money is being invested appropriately, in ways that advance the best interests of members, and hold trustees to account to ensure they are doing so,” Ms Rowell said.
A focus on legacy products has become one of the biggest barriers to innovation and the industry needs to be prepared to bear the burden of investment in improving those systems.