While acknowledging that some progress has been made by the superannuation industry in implementing the retirement income covenant (RIC), the Australian Prudential Regulation Authority (APRA) has indicated there is an “urgent need” for further improvement. This comes after a review by APRA and the Australian Securities and Investments Commission (ASIC) last month concluded that super funds had displayed a “lack of progress and insufficient urgency” in embracing the RIC since it came into effect in July last year. In a speech to the Conexus Retirement Conference on Tuesday, APRA deputy chair Margaret Cole noted the industry had taken significant steps to strengthen governance, improve practices within the industry, and address performance issues during the past 10 years.
“Is there more to be done? Absolutely! But trustees do recognise their obligations to promote strong member outcomes and acknowledge the need for further improvement, and most are willing and committed to deliver on this,” she said. “The challenge for us all is to ensure that this focus translates into actual, measurable improvements through the eyes of members. “So, despite the progress that has been made – focused on the accumulation phase of superannuation – there is an urgent need to improve the experience of members of the Australian community approaching and in retirement in terms of the quality of assistance offered, including the financial outcomes delivered, for superannuation members.”
The rest of this article can be found at investordaily.com.au.