Retirement
Should APRA play the shame game?
Instead of regulating the superannuation industry, the prudential regulator is “playing the shame game” through the release of its heatmap, industry bodies have suggested.
Should APRA play the shame game?
Instead of regulating the superannuation industry, the prudential regulator is “playing the shame game” through the release of its heatmap, industry bodies have suggested.
The heatmap, released on Tuesday, has ranked five-year performances, fees and costs, member sustainability and growth assets as a way to increase accountability and transparency in the industry.
However, the data only analyses part of the funds, not the whole, the Lonsec researcher has said, meaning members might be influenced on whether a product is appropriate for them.
“By ignoring things like governance, advice, insurance and member servicing structures, consumers are not being provided with the whole picture,” SuperRatings warned.
Jeff Bresnahan, founder of SuperRatings, believes APRA should set the structure under which funds operate, and publishing the data morphs the regulatory process into public comparison instead of adhering to the agency’s duty.
“While conflicts of interest were identified as a major issue in superannuation during the royal commission, it seems ironic that APRA has deliberately avoided reporting any measurement of a fund’s governance structure,” Mr Bresnahan said.
Mr Bresnahan said APRA’s attempts are admirable but questionable at the same time.
“A regulator should set the structure under which funds need to operate,” he said.
“The morphing of this regulatory process into public comparisons leaves it open to being seen as stepping across the line. One wonders what they are actually trying to achieve by moving into this public domain.”
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