This week, APRA issued an FAQ release about the reforms; the performance test aims to “hold RSE licensees to account for underperformance through greater transparency and increased consequences”.
If a product fails the test in two consecutive years, the RSE licensee will be prohibited from accepting new beneficiaries into that product.
APRA confirmed that results will be published on 31 August after all RSE licensees have been notified.
The prudential regulator noted that “there is no discretion for APRA to exempt a product from having its results published by APRA”.
However APRA confirmed that a “pass” or “fail” result will be published and that the value will not be disclosed.
It comes after Industry Super chief executive Bernie Dean slammed the government’s decision to weaken performance benchmarks to only include the last year’s administration fees, instead of an eight-year average.
“Millions of Australian workers unknowingly stuck in a dud super fund will be the biggest losers from the government’s sneaky backflip on performance tests that were meant to clean them out of the system,” Mr Dean said.
“Some of the worst performing funds could take advantage of the government’s sneaky backflip and pass the test when they may otherwise have failed, leaving millions of Australians unaware that they’re with a dud fund and could get a better deal elsewhere.”
