The Australian Prudential Regulation Authority (APRA) has released new requirements to help ensure super funds deliver value for money to their members.
Under the new Prudential Standard SPS 515 Strategic Planning and Member Outcomes, registrable superannuation entity (RSE) licensees will need to annually benchmark and evaluate the performance of super funds, to ensure they’re delivering quality outcomes to all members, including MySuper and choice products.
APRA deputy chairman, Helen Rowell, said that sound and prudent management of the $1.8 trillion APRA-regulated segment of the superannuation industry includes ensuring that super companies put their members’ interests first:
“These new policy proposals address weaknesses in the current superannuation regulatory framework and would greatly assist APRA in driving the superannuation industry towards addressing underperformance and improving member outcomes.”
The new measures are set to commence 1 January 2020, so the industry has enough time to meet the new requirements.