Brough rejects industry fund bias claims
The Assistant Treasurer, Mal Brough has told the Conference of Major Superannuation Funds being held in Hobart that industry funds are not being discriminated against by the Australian Prudential Regulation Authority's (APRA) approach to the new choice of fund regime.
Mr Brough used his opening address to the Conference to claim that a letter written to superannuation funds by APRA warning them about the possibility of membership-related advertising breaching the sole purpose test had not been directed solely toward industry funds.
"It is not my understanding that the letter was directed solely against industry funds," he said. "It is my understanding that the same letter was sent to all superannuation funds."
"The same rule applies to everyone with respect to touting for new members," Mr Brough said.
However the executive chair of Industry Fund Services, Garry Weaven used the first plenary session of the conference to question APRA's approach and the interpretation which was being applied to the sole purpose test.
Mr Weaven said that it needed to be remembered that superannuation funds understood the economies of scale and the need for funds to act in the best interests of members in pursuing economies of scale.
"It would be irresponsible not to seek to grow when member's interests are at stake," he said.
While backing the right of the APRA to issue its warning letter to superannuation funds, Mr Brough yesterday suggested that any funds who had issues with the regulator's approach should raise those issues with APRA.
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