APRA - Superannuation platform governance

Question

Senator O'NEILL: Who you oversee. I might just conclude with this: I'm coming to the view, Mr Lonsdale, that APRA is attempting to have it both ways here. You have the HUB24 licence conditions based on insufficient oversight of platform investments-a win for APRA. Yet, with the lack of oversight on other platforms-investment options such as Shield and First Guardian-by Diversa, Equity Trustees and Macquarie, you're now arguing that that oversight isn't under your jurisdiction. I have concerns about that; Australians need to know that their superannuation is safe. I was pleased to hear in your opening statement that you acknowledge you're responsible for ensuring that those superannuation trustees adhere to the requirements of the SI(S) Act. I just want to see evidence of it happening. Thank you. Ms Cole: Senator, the- Mr Lonsdale: Senator, this is an important point, if we can pick it up. Ms Cole? Ms Cole: I was going to say that the evidence comes from the fact that, once these issues regarding platforms started to come to light, and when we already had our own desire to do work on the system here, we commenced our own platforms review, called Platforms Plus Strategic Research. It was a very thorough review of the whole platforms sector. From that came further work that we have done in relation to directing the industry to go about things in a different way and to achieve an uplift. Arising from that also we had further issues with specific trustees. Those trustees have been subject to licence conditions and court-enforceable undertakings. They are required, now that it is apparent, to drive up their practices. We created the piece of paper that you were referring us to in response to your question. It is not the format in which we would be able to see the data in the normal course; it was created for you. I agree that the picture looks clear and stark, but that is not the way that it would reveal itself within APRA's systems. As the chair said, if we were to pull this sort of data and produce charts on other products you would probably see things equally as stark-or with even more growth. It's undoubted that- Senator O'NEILL: Well, that's something that you might do. I understand that you've had an $82.7 million operational surplus over the past two years- Ms Cole: The chair might- CHAIR: I am going to have to rotate the call because we are really running short of time now. Ms Cole: I think it's too important a point to leave unresolved, though, Chair. CHAIR: Perhaps you can respond on notice.

Answer

See attached response.

Documents

• Question with answer (PDF) (opens in a new tab)
• SQ26-000485 APRA - Superannuation platform governance.pdf (opens in a new tab)