The Australian Prudential Regulation Authority has outlined planned superannuation reforms alongside the Government’s proposed compensation scheme for members who suffer significant losses because trustees fail to meet their obligations. Under the proposal, APRA would set capital requirements for trustees offering higher risk investment options to ensure they can meet obligations arising from the compensation scheme. APRA will also propose stronger investment governance requirements across the investment management lifecycle, including trustee capabilities, investment option onboarding and monitoring, conflicts management, member-level diversification, oversight and accountability. The reforms would apply to all trustees but have the greatest impact on platform trustees because of their broader investment menus and more complex products. They respond to shortcomings identified in APRA’s 2025 review, which covered about 95% of platform assets under management, and follow enforcement action against five trustees. APRA plans to consult on the investment governance package in September 2026. It will consult separately on the detailed capital framework after the Government finalizes the relevant legislation.

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