Banks want super security lifted

In a submission to the Federal Government's Superannuation Working Group, the Australian Bankers Association has called for tougher regulation of the superannuation industry, including enhanced powers for the Australian Prudential Regulation Authority. The ABA says that funds should be required to obtain a specific licence from APRA, rather than ASIC.

The ABA's CEO, David Bell, says that banks play a major role in the super industry and have a legitimate voice in arguing for an improvement in standards and security of that industry.

The Association of Superannuation Funds' Philippa Smith has some concerns over the ABA's reform proposals. She says that while a strong role for APRA is positive, the way to improve security is to identify “pockets of risk” rather than just overlay extra costs on every super fund.