Jane Hume (Victoria, Liberal Party, Minister for Superannuation, Financial Services and the Digital Economy) Share this | Hansard source

This is an extraordinarily important question, because, if your superannuation fund is failing, there are very serious consequences. Funds are now required to notify their members—to notify you—of their underperformance, by 27 September this year. Funds must provide members with the details of the YourSuper comparison tool, so that members can then consider whether a different product would better suit their needs.

The Australian Prudential Regulation Authority has now also written to superannuation funds whose products fail or marginally pass that performance test, setting out their supervisory expectations. This will include APRA assessing the credibility of funds' plans to improve their performance and to lower their fees. Importantly, products that fail the annual performance test two years in a row will be closed to new members until their performance improves. That means they will not be allowed to take on new members, who would suffer from the continual underperformance. APRA have made their position clear: trustees of the 13 products that have failed the test now face an important choice— (Time expired)