The Australian Prudential Regulation Authority (APRA) has released a package of proposals to strengthen trustee investment governance and better protect members' retirement savings.
The reforms are the next phase of APRA's multi-year focus on lifting investment governance standards across the superannuation industry, particularly within the platform trustee segment.
The proposals build on substantial supervisory and enforcement activity and directly address shortcomings identified in APRA's 2025 review of platform trustee practices.
They would strengthen requirements across eight key areas of risk and build on existing obligations for trustees.
Three new safeguards would require trustees to:
- set and enforce member-level investment limits for higher-risk investments;
- strengthen the management of investment-related conflicts; and
- ensure their investment oversight capabilities and resources are commensurate with the size and complexity of their investment menus.
APRA is also proposing five changes to codify and strengthen existing expectations for investment onboarding, monitoring, remediation, valuations and accountability.
Alongside these policy reforms to strengthen investment governance, APRA will continue to focus its supervisory intensity on platform trustees. As part of this work, APRA is considering whether certain trustee remuneration requirements that currently apply to large trustees should be applied to complex trustees of all sizes to appropriately incentivise effective and prudent governance.
APRA Deputy Chair David Bradbury said sound investment governance and clear trustee accountability is fundamental to protecting members' retirement savings.
"Trustees are ultimately accountable for the investments they make available to members. Investment choice must be supported by consistently strong safeguards, rigorous oversight and timely action when risks emerge. The failures of Shield and First Guardian demonstrate the serious harm that can occur when members accumulate concentrated holdings in poor or unsuitable investment options.
"Despite extensive supervisory and enforcement activity, material weaknesses in trustees' investment governance practices remain. Policy reform is needed to strengthen trustee accountability and help ensure members' interests remain at the centre of investment decisions."
The investment governance changes would apply to all trustees. However, they are expected to have the greatest impact on platform trustees, given their typically broader investment menus, more complex products and greater reliance on financial advisers and other third parties.
APRA's proposals are aligned with the measures announced by the Government on 19 August to strengthen consumer protection and increase the resilience of the superannuation system.
APRA is seeking feedback on the proposed changes, including their effectiveness, proportionality and implementation impacts. Submissions close on 3 February 2027. The standards are expected to be finalised in the first half of 2027. Subject to consultation, the new framework is expected to commence on 1 January 2028.
View the consultation package on APRA's website at: Strengthening superannuation investment governance .
