APRA deputy chair Helen Rowell wrote to super trustees on Friday informing them about the regulator’s proposals to strengthen its operational governance framework.
The proposed new prudential standards are the culmination of Ms Rowell’s efforts to force super funds to think about their organisations as businesses rather than ‘not-for-profits’.
Ms Rowell has previously argued that ‘self interest’ is blocking mergers of super funds that would make sense for members. In July, she said super funds needed to “change or exit”.
Discussing the letter to super trustees (‘RSE licensees’), Ms Rowell said trustees are “expected to operate in a manner that supports long‐term sustainability of their business operations and delivery of quality, value for money outcomes to members”.
“The superannuation industry is going through a period of significant evolution and it is incumbent on RSE licensees to be focused on meeting the best interests of members through delivering high quality, value for money member outcomes,” she said.
“This extends to RSE licensees making decisions about the use of members’ money in a manner that provides appropriate transparency and accountability, and is demonstrably in the best interests of members.”
The new prudential standard will require trustees to have an operations governance framework, to expand their business planning, to meet “minimum expectations” when making decisions on fund expenditure, and to undertake an outcomes assessment for all members.
Super trustees will have until 11 September to provide feedback to APRA on the issues raised in Ms Rowell’s letter.
