APRA proposes stricter investment governance rules
- APRA has proposed stricter investment governance rules to protect superannuation members' retirement savings.
- The changes aim to address widespread weaknesses in trustee practices, particularly across platform trustees with complex investment menus.
- Consultation closes on Feb. 3, 2027, with the new framework scheduled to take effect on Jan. 1, 2028.
The Australian Prudential Regulation Authority has proposed a package of reforms across eight key risk areas to strengthen superannuation trustee investment governance.
These new proposals follow a 2025 review that uncovered significant shortcomings in platform trustee practices and investment oversight.
"Investment choice must be supported by consistently strong safeguards, rigorous oversight and timely action when risks emerge," said APRA Deputy Chair David Bradbury.
Under the three core safeguards, trustees must enforce member-level limits on higher-risk assets, manage investment conflicts, and match their oversight resources to the size of their menus.
The regulator stated that the proposed framework is expected to take effect on Jan. 1, 2028, following a consultation period ending on Feb. 3, 2027.
The policy initiative aligns with broader federal government measures announced on Aug. 19 to bolster consumer protections across Australia's financial system.
APRA continues to increase its supervisory focus on platform trustees to ensure clear accountability and prevent members from holding concentrated positions in unsuitable investments.
