Financial regulator APRA has flagged higher scrutiny of superannuation funds, telling those running below-par funds: “Get better or get out”.
Australian Prudential Regulation Authority deputy chair Helen Rowell on Friday said there would be increased supervision, and APRA would collect more funds data and publish it to improve transparency.
Mr Rowell said the regulator would keep highlighting funds not operating at required levels.
“I reiterate the message for those in the industry still lagging behind that, if you’re not up to scratch, you need to get better or get out,” she told an Association of Superannuation Funds of Australia conference.
APRA will collect more data this year, so it can draw attention to underperforming choice products, rather than just default MySuper funds.
Ms Rowell said identifying underperforming MySuper products led some to close last year, and about $400 million in fees were no longer charged.
APRA is also aiming to improve governance of funds and diversity on boards.
Ms Rowell said the latter was not simply about gender, but also about skills and experience.
She said while some in the industry found reviewing these elements valuable, others were defensive and dismissive.
APRA is pushing reforms as superannuation funds have continued to climb in value over the years.
Ms Rowell said this meant the stakes were higher, and those running funds needed to improve accordingly.