Australia. Two regulators are enough – perhaps more than enough
It is tempting to join the media pile-on about the Australian Prudential Regulation Authority’s apparent lack of action on underperforming superannuation funds, but in terms of true legal powers, the regulator appears to have more bark than bite.
This point will probably loom large in the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry’s fifth round of hearings.
This latest round began yesterday and will put the focus on superannuation for a fortnight.
We know APRA and the Australian Securities and Investments Commission will be called to give evidence, but as of last night, we were still in the foothills, with National Australia Bank/MLC’s Paul Carter sweating under the hot lights on the matter of how grandfathered commission streams made it less tempting for advisers to move clients to products that might better meet their needs.
Shades of Round Two.
The Australian dialled up the heat on Saturday under the heading “super fund laggards ignore calls to merge,” to be backed up yesterday, in headline terms at least, by The Australian Financial Review’s back page, headed: “APRA must explain its inaction”.
Read more investmentmagazine
