The Federal Government plan’s to introduce tough rules for superannuation funds has received a mixed response from the super industry. While most members understand the need for tight regulation for smaller funds, there’s some concern surrounding the minimum levels of capital for employer and industry funds. 

Association for Superannuation Funds of Australia CEO Philippa Smith said that the proposals could “work to the detriment” of already successful funds with confusion over whose pocket the capital will be taken from.

Gary Weaven, the Executive Chairman of Industry Fund Services, said the minimum level of capital is completely irrelevant for large funds.  But while the regulation may seem painful for the larger super players, Mr Weaven said it is clear that APRA is right – the risk is basically in the small funds. 

The Federal Government has endorsed a discussion paper that outlines the reforms designed to safeguard the super industry after the sting of recent loss in small funds.