House Economics committee to inquire into superannuation 'war chests'

THE House Economics Committee will be holding a public hearing via videoconference on February 10, focusing on the impact of recent amendments made to the Superannuation Industry (Supervision) Act 1993.

This public hearing is part of the committee’s ongoing Review of the Four Major Banks and other Financial Institutions, with the committee to hear from Australian Prudential Regulation Authority (APRA), Australian Securities and Investments Commission (ASIC), Treasury, and Professor Scott Donald.

Committee Chair Jason Falinski MP said, Amendments to Section 56 of the Superannuation Industry (Supervision) Act 1996 were made as part of the government’s response to the Hayne Royal Commission to protect the funds of members by preventing trustees from using these funds to pay for fines incurred by their own actions. However, there have been wide reports of superannuation funds seeking judicial opinions to contravene this provision.

"The committee deserves an explanation from APRA, ASIC and Treasury as to how they are interpreting these new provisions, and what actions they will take to ensure that the decisions made by Parliament are not easily and carelessly overturned. The committee would like to know how superannuation trustees could fund their penalties, and ways to do so that do not put member’s funds at risk or increase their fees."

The committee will also hear from UNSW Associate Professor Scott Donald, who specialises in governance within the superannuation sector.

Mr Falinski said, "Throughout this inquiry, the committee has remained concerned about consumers’ best financial interests. While the regulators will be an important focus of the committee at this hearing, we also look forward to hearing from Professor Donald and his perspective on recent events."

For more information about the hearings, or to read transcripts from previous hearings, visit the committee’s website.

Public hearing details

Date: Thursday 10 February 2022
Time: 9.15am to 11.30am
Witnesses: Professor Scott Donald, APRA, ASIC and Treasury

The hearing will be webcast at aph.gov.au/live.\

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