The Lower House of Parliament has passed legislation that will help close a "regulatory gap" within Australia's superannuation system by giving the Australian Prudential Regulation Authority (APRA) greater powers to pursue problem directors.
Minister for Financial Services and Superannuation, Bill Shorten, said yesterday's passage of the Superannuation Legislation Amendment (Trustee Obligations and Prudential Standards) Bill 2012 in the House of Representatives will result in improved requirements for the trustees of super funds and provides APRA with greater powers in respect of super.
The measures contained in the bill implement changes recommended by the Cooper Review into the governance, efficiency, structure and operation of Australia's superannuation system, Shorten said in a statement.
"I flagged these reforms as early as December 2010. Today [yesterday], this government passed legislation through the lower house that gives the regulator and members new powers to go after rogue superfund directors," he said.
"I am committed to reforming the governance and supervision of our superannuation system and will be bringing further changes before Parliament including additional disclosure requirements for trustees and enhanced data collection and publication powers for APRA."
Under the bill, trustees are required to put the interests of members of funds first at all times.
It also calls for clear identification as to the duties that apply to directors of super funds, including acting honestly and in the best interests of members.
The bill also includes a power for APRA to make prudential standards for superannuation.
"The bill helps to close a regulatory gap by giving APRA standards-making power in superannuation," Shorten said.
The prudential standards provisions, which will provide APRA with greater flexibility to adapt to industry developments, will apply from the day after Royal Assent. The enhancements to trustee obligations will apply from 1 July 2013.
