Consumers benefit from higher prudential standards: ASFA

The passage of legislation through the Senate last night empowering APRA to issue prudential standards for superannuation is a win for consumers, the peak association for the superannuation industry said today.

The Association of Superannuation Funds of Australia (ASFA) congratulated the Government for its commitment to implementing one of the key recommendations of the Super System Review.

ASFA said the industry had been working hard with the Australian Prudential Regulation Authority (APRA) on developing and refining the draft prudential standards. APRA has announced it expects to issue final standards by the end of the year.

“Consumers can have more confidence in the long-term stability of the superannuation system as a result of increased prudential supervision,” ASFA chief executive Pauline Vamos said today.

“As an integral, and fast-growing, plank of the Australian economy it is imperative that superannuation be held to the same level of prudential supervision as other key elements of the financial system and the economy, such as banking and insurance.

“The new standards will enshrine requirements for APRA-regulated super funds around governance, risk management and reserves.

“Ultimately, these standards will help protect Australians’ retirement savings.”

For media inquiries, please contact:

Pauline Vamos, CEO, 0433 169 342

Rebecca Glenn, GM Marketing and Communications, 0416 170 439

Megan McDougall, Media and Communications Coordinator, (02) 8079 0849

About ASFA

ASFA is the peak policy, research and advocacy body for Australia’s superannuation industry. It is a not-for-profit, sector-neutral, and non-party political national organisation whose aim is to advance effective retirement outcomes for members of funds through research, advocacy and the development of policy and industry best practice.