The Australian Prudential Regulation Authority has proposed stronger investment governance requirements for all superannuation trustees, with the greatest impact expected on platform trustees because of their broader investment menus, complex products and reliance on third parties. The consultation advances APRA’s previously announced reform agenda and responds directly to material weaknesses identified in its 2025 review of platform trustee practices, including risks from members accumulating concentrated holdings in poor or unsuitable investments. Three new safeguards would require trustees to set and enforce member level limits for higher risk investments, strengthen management of investment related conflicts, and maintain oversight capabilities and resources proportionate to the size and complexity of their investment menus. Five further changes would codify and strengthen expectations covering investment onboarding, monitoring, remediation, valuations and accountability. APRA is also considering whether remuneration requirements for large trustees should extend to complex trustees of all sizes. APRA expects to finalize the standards in the first half of 2027. Subject to consultation, the new framework would commence on Jan. 1, 2028.
Australian Prudential Regulation Authority launches consultation on stronger superannuation investment governance safeguards
The Australian Prudential Regulation Authority has proposed stronger investment governance requirements for all superannuation trustees, with platform trustees expected to face the greatest impact. The reforms would introduce member level limits for higher risk investments, stronger conflict controls and proportionate oversight capabilities, while tightening expectations for onboarding, monitoring, remediation, valuations and accountability. The framework is expected to commence on Jan. 1, 2028, subject to consultation.