APRA is the news again, this time because Financial Services and Regulation Minister Joe Hockey is offering them the opportunity to present a “wish list” of what they need to properly regulate Australia’s superannuation system. 

A new parliamentary report amid investigations into super fund collapses has found that APRA hasn’t been regulating the “smaller end” of the 220,000 registered funds.  The Senate Committee is suggesting that APRA was not curbing funds, and not tackling inappropriate or fraudulent investment strategies due to a lack of funds.  The super industry supplies more than half of APRA’s operating costs.  

Mr Hockey, who Minister Hockey will meet with super industry leaders later this week, concedes there are too many super funds in the market.  “They [the smaller funds] find it difficult to compete with resources and administration of larger funds,” he said.

Association of Superannuation Funds of Australia CEO Philippa Smith said ASFA “would like to see better accountability” for the funds. Susan Ryan, President of the Australian Institute of Superannuation Trustees, said the introduction of mandated education levels and industry-related certificates may reduce the level of collapses experienced within the industry, but only if it is enforced by legislation.