APRA publishes Margaret Cole’s remarks to the Conexus Chair Forum

The Australian Prudential Regulation Authority (APRA) has published remarks delivered this afternoon by APRA Deputy Chair Margaret Cole to the Conexus Chair Forum.

In her speech “Tales of the unexpected”, Ms Cole emphasises APRA’s resolute focus on lifting trustee standards across a range of areas including operational risk management, cyber controls and investment governance to build fund resilience and protect Australians’ retirement savings.

Her comments include:

• “When you look back at events in superannuation over the past few years, “expect the unexpected” would be an appropriate maxim for the industry. Too many trustees have been caught off guard by situations they did not expect or had not taken steps to prevent. In many cases, these were situations that might not have been anticipated but were not entirely unforeseeable either.”
• “Trustees should be especially vigilant about the cyber risk to assets sitting in retirement phase products. These products provide greater avenues for funds to be withdrawn from the superannuation system.”
• “Shortcomings in trustee governance of investment valuations, liquidity and platforms will continue to be a focus for APRA. Platform trustees, in particular, can expect continued heightened scrutiny this year.”
• “The imposition of licence conditions is a critical APRA tool. Licence conditions drive immediate attention and action to addressing deficiencies, typically without an extended period of court litigation. In my time at APRA, we have become more muscular in our use of this tool. You can expect this to continue.”

The full speech is available on the APRA website at: APRA Deputy Chair Margaret Cole's remarks to the Conexus Chair Forum