Retail funds lagging on MySuper approval
The number of industry funds applying for a MySuper license far outweigh the number of retail funds that have so far applied.
According to figures quoted by Australian Prudential Regulatory Authority (APRA) senior manager Gordon Walker, a total of 45 applications have been received for a Mysuper license. Six retail funds, 34 industry funds, three public sector funds, and two corporate funds have applied.
However, no retail funds have currently been approved by APRA. Of 19 applications approved so far, 18 of them have been industry funds, and one public sector fund.
A number of super funds have agreed to withdraw their application prior to improving them and re-applying, Walker told the Association of Super Funds of Australia compliance summit.
All the applications for the license have been generic, not tailored or goodwill, he said.
Walker warned that APRA does not have an appetite at all for any fund applying for an exemption from the license, and they didn't expect any applications of that nature either.
However, he acknowledged that there were some circumstances that may need to be investigated.
Funds need to be able to show how they are going to satisfy the principle of Mysuper, Walker said.
"There doesn't need to be an exemption, there simply needs to be a discussion about how they are looking to satisfy that principle," he said.
Walker re-iterated that APRA had expected more applications so far, and has approached super funds about their intentions.
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