APRA flags Budget-driven changes to heatmaps

APRA heatmap super

12 October 2020
| By Mike |
image
image
expand image

The Australian Prudential Regulation Authority (APRA) has signalled possible changes to its superannuation heatmaps regime to reflect the Government’s Budget changes to superannuation fund performance.

APRA deputy chair, Helen Rowell has told a superannuation trustees forum that the Government’s proposals contained in the Budget involving testing the relative performance of superannuation funds are aligned with the direction being pursued by APRA.

She said the Government’s Budget measures, if passed by the Parliament, would “shine a brighter light on fund performance and trustees expenditure decisions”.

“From APRA’s perspective, the Government’s proposals are very much aligned with APRA’s ongoing work to ensure that members and member outcomes are at the forefront of all decisions that trustees are making,” she said.

Rowell claimed the APRA’s MySuper product heatmap had been a game changer for transparency across the industry and had already improved outcomes for a significant number of members.

“As outlined in our June update of the heatmap, more than 40% of MySuper members have seen a reduction in fees since its initial publication last December and further fee reductions have occurred or are planned since then. The flip side, however, is that inaction, or inadequate action, by some funds has meant that too many members still remain in funds where fees are too high and returns are too low - and that is not good enough by anyone’s standards,” she said.

“In the near term, APRA will be working closely with the Government, ATO and ASIC on the detailed implementation plan for these measures. We will also be considering the changes that may be needed to our priorities and work plan, including potential changes to the MySuper Heatmap publication currently planned for December 2020.”

“Critical to the implementation of the proposed reforms will be the expanded data collection under the Super Data Transformation program on which we are consulting with industry, and which is proposed to be effective from 1 July, 2021, with reporting due in September next year,” Rowell said. 

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

3 weeks 5 days ago

This verdict highlights something deeply wrong and rotten at the heart of the FSCP. We are witnessing a heavy-handed, op...

1 month ago

Interesting. Would be good to know the details of the StrategyOne deal....

1 month ago

Insignia Financial has confirmed it is considering a preliminary non-binding proposal received from a US private equity giant to acquire the firm. ...

1 week 3 days ago

Six of the seven listed financial advice licensees have reported positive share price growth in 2024, with AMP and Insignia successfully reversing earlier losses. ...

5 days 22 hours ago

Specialist wealth platform provider Mason Stevens has become the latest target of an acquisition as it enters a binding agreement with a leading Sydney-based private equi...

5 days 2 hours ago