The Australian Prudential Regulation Authority published a speech by its outgoing deputy chair that mainly looked back on APRA’s superannuation oversight since the Your Future Your Super reforms took effect. The speech argued that stronger transparency, closer scrutiny of trustee spending and the annual performance test have changed trustee behaviour and reduced member exposure to persistently underperforming products. It also reiterated APRA’s focus on governance and accountability across superannuation. A central theme was the best financial interests duty, which the speech described as sharpening trustees’ obligations and justifying APRA’s intensified review of fund expenditure. APRA pointed to earlier thematic work that found weaknesses in how trustees measured spending and assessed member benefits, especially for sponsorships and marketing, and said its expanded superannuation data collection and publication program has helped drive better discipline. On performance testing, the speech said 13 of 76 MySuper products failed in the first year and that the number of members in failing products has since fallen from 1 million to 8,500. It also highlighted continuing supervisory concerns at individual fund level, with thematic reviews still finding shortcomings in areas including cyber resilience, investment governance, valuation practices, liquidity risk management, platform onboarding, operational risk management and implementation of the Retirement Income Covenant. Looking ahead, the speech said APRA will continue to support transparency through the performance test, statistical publications and future reporting under the government’s Retirement Reporting Framework. It also noted that the future design of the performance test is now a matter for government following the Treasury consultation on possible changes, with the government committed to retaining some form of the test while considering unintended consequences and improvements.
Australian Prudential Regulation Authority2026-06-25
Australian Prudential Regulation Authority defends superannuation transparency and performance reforms in deputy chair’s final speech
APRA used its deputy chair’s final speech to defend its superannuation transparency agenda, saying tighter scrutiny of trustee expenditure and the annual performance test have improved member outcomes and changed industry behaviour. The speech said members in products failing the performance test have fallen from 1 million to 8,500, but supervisory reviews still find governance and risk management weaknesses at some funds. APRA also signalled that transparency and accountability will remain central while the government considers changes to the test.