After a string of high-profile fund failures, the federal government and regulators are moving to tighten rules on super funds. Expect tougher licensing, stronger oversight of unlisted asset valuations and liquidity, and mandatory service standards for large APRA-regulated funds.
Why is this happening?
Two collapses — First Guardian and Shield — have exposed deep gaps in the system, with losses topping $1 billion and thousands of Australians affected. ASIC and APRA have since flagged problems with how some funds value illiquid assets and manage cash in stress events. The government has also committed to enforceable member-service standards.
What’s likely to change?
- Licensing and sales practices — Risky funds should find it harder to be licensed, and high-pressure marketing is in the firing line.
- Valuation and liquidity discipline — Regulators want tighter, independent valuations for unlisted assets and clearer liquidity plans so funds can meet redemptions and claims fairly, especially when markets are stressed.
- Service standards you can measure — Large APRA-regulated funds will face enforceable timelines for things like rollovers, insurance and death-benefit claims, with oversight to lift member outcomes.
In a large APRA-regulated fund? Do this now!
- Ask for the basics: current beneficiary nominations, insurance settings and your contact details being correct. It prevents avoidable delays later.
- Check the hard stuff: request a breakdown of unlisted assets, the valuation policy and the fund’s liquidity plan for stress scenarios.
- Track service: keep dated records of response times for rollovers and claims. New standards aim to make these timeframes enforceable.
Better still, consider an SMSF
If control, transparency and custom succession matter, a self-managed super fund (SMSF) can deliver. Reach out today to find out how an SMSF can help you take director control over your financial future.
