1 / 13

Charles Littrell Executive General Manager Australian Prudential Regulation Authority 28 May 03

AUSTRALIAN SUPERANNUATION SUMMIT “Progress Towards a Sounder Superannuation Industry”. Charles Littrell Executive General Manager Australian Prudential Regulation Authority 28 May 03. APRA’s Mission. Minimise Regulated Entity Failure to pay protected creditors

zachery-franklin
Download Presentation

Charles Littrell Executive General Manager Australian Prudential Regulation Authority 28 May 03

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. AUSTRALIANSUPERANNUATION SUMMIT“Progress Towards a Sounder Superannuation Industry” Charles Littrell Executive General Manager Australian Prudential Regulation Authority 28 May 03

  2. APRA’s Mission • Minimise Regulated Entity Failure to pay protected creditors • Super fund members, Depositors, Policyholders • Collectively, “Beneficiaries” • Not Shareholders

  3. Defining the Mission • Failures are statistically certain • Zero Systemic Failures • 99.9% PER, 99.95% MPR • Competitiveness, Efficiency, Innovation, Contestability • Budget, Use of State Power

  4. APRA’s Mission in Superannuation • Defined Benefit: Protect Promised Payments • Accumulation: “Reasonable” Outcome • All Funds: Appropriate Trustee Behaviour • Bad Luck vs. Bad Trustees

  5. Appropriate Trustee Behaviour • SIS and Other Statutes: Minimum Standard • Handling Risk: Core Standard • Current Good Practice • Future Licensing Key • Handling Conflicts: Increasingly a core standard • Vs. Employers • Vs. Union • Vs. Retail Sponsor • Fund Members are Not Customers!

  6. Major APRA Superannuation Initiatives • Becoming “Better” • Becoming “Tougher” • Supporting Government Reform • Data, Analysis, Research

  7. Becoming Better: Consistent Risk Assessment 3750 18750 56250 250 50 3750 11250 750 10 2250 150 750 4 1 15 75 225

  8. Becoming Tougher: Consistent Supervisory Response RISK I M P A C T

  9. Supporting Government Prudential Reform • Trustee Licensing, Fund Registration • Risk Management Strategies and Plans • Fraud/Criminality • Investment • Operational/Outsourcing • Governance/Conflicts • Key Licensing Issues • Sound Risk Management Policies • Followed in Practice • Proven to APRA • Tiered vs. Complexity, Equal Representation

  10. Superannuation Data, Analysis, and Research • Data Improvements from June 2004 • Analysis and Research • Prudential Focus • Outlier Analysis • Size/Sector Research • Cost Research • Detailed Onsite Analysis • Research Direction • Understanding Industry Economics • Developing Early Warning Signals • Information Pressure on Poor Conflict Management

  11. APRA Directions in Superannuation • Licensing and Risk Management the Core Tools • More performance/data focus vs. statutory focus • More interventionist • Continued focus on misconduct • Increased focus on conflict of interest

  12. Summary • Reasonably safe from misconduct • Not necessarily safe from conflict • Licensing will help in both areas • New APRA approach will also help

  13. Charles Littrell Executive General Manager Australian Prudential Regulation Authority 28 May 03 AUSTRALIANSUPERANNUATION SUMMIT“Progress Towards a Sounder Superannuation Industry”

More Related