The Crest of the Commonwealth of Australia Treasury Portfolio Ministers
Picture of Bill Shorten

Bill Shorten

Minister for Financial Services & Superannuation

14 September 2010 - 1 July 2013

Media Release of 23/05/2012

NO.026

Superfund Directors Under Greater Scrutiny Thanks to Government Bill

Minister for Financial Services and Superannuation Bill Shorten today welcomed the passage of legislation through the House of Representatives that improves requirements for the trustees of superannuation funds and provides APRA with greater powers in respect of superannuation.

The measures contained in the Superannuation Legislation Amendment (Trustee Obligations and Prudential Standards) Bill 2012 implement changes recommended by the Cooper review into the governance, efficiency, structure and operation of Australia's superannuation system.

"I flagged these reforms as early as December 2010. Today, this Government passed legislation through the lower house that gives the regulator and members new powers to go after rogue superfund directors." the Minister for Financial Services and Superannuation said.

The Bill:

  • requires a trustee to put the interests of members of funds first at all times;
  • clearly identifies the duties that apply to directors of superannuation funds, including acting honestly and in the best interests of members; and
  • includes a power for APRA to make prudential standards for superannuation.

The Government has worked closely with a range of stakeholder groups to deliver the measures contained in this legislation.

"The Bill helps to close a regulatory gap by giving APRA standards-making power in superannuation." the Minister for Financial Services and Superannuation said.

The prudential standards provisions, which will provide APRA with greater flexibility to adapt to industry developments, will apply from the day after Royal Assent. The enhancements to trustee obligations will apply from 1 July 2013.

"I am committed to reforming the governance and supervision of our superannuation system and will be bringing further changes before Parliament including additional disclosure requirements for trustees and enhanced data collection and publication powers for APRA," the Minister said.

23 May 2012