Sun, 3rd Nov 2024

In the October 2024 update, Financial Services Online reports substantial changes in the Australian superannuation industry. The Australian Prudential Regulation Authority (APRA) has revised operational risk reserve requirements. For large funds, reserves are reduced to 0.175%, and medium-sized funds can now keep a 0.20% reserve. This encourages major funds, including AustralianSuper, to consider increasing capital freedom by mid-next year. Meanwhile, APRA maintains scrutiny to ensure stability and risk management. On another note, APRA is also scrutinizing the industry's high marketing costs. With over $400 million annually spent on marketing, questions arise about the ethicality and benefits to fund members. Amongst the heavy spenders, AustralianSuper leads with $60.2 million, followed by CBUS at $34.7 million. A probe into superannuation fund spending is underway, aiming to ensure accountability and responsible management. For updates, visit financialservicesonline.com.au.