Super funds respond to Mulino reforms

Two of Australia’s largest superannuation funds have publicly supported the federal government’s reforms to consumer protection and financial advice. The changes aim to provide safer and more accessible guidance for millions of members.

AustralianSuper and Australian Retirement Trust (ART) manage nearly $800 billion in retirement savings. Their joint response followed Financial Services Minister Daniel Mulino’s announcement of measures targeting lead generation, anti-hawking rules, and compensation frameworks. These updates came after the recent failures of Shield and First Guardian.

New accountability for super trustees

The reforms establish a stricter remediation framework. The Australian Securities and Investments Commission (ASIC) will now have authority to require trustees to start compensation processes if breaches are suspected. Trustees must cover full capital losses for members where failures occur. Meanwhile, the Australian Prudential Regulation Authority (APRA) will gain power to set capital requirements for funds offering higher-risk investment options.

Paul Schroder, CEO of AustralianSuper, stressed the importance of reliable advice as 2.5 million Australians prepare for retirement in the next ten years. The fund, which oversees $430 billion in assets for 3.6 million members, has expanded its advice services through digital platforms and retirement guidance tools.

“Members deserve the right help to make good financial decisions with one of their most important assets,” Schroder said. “People need more assistance, and it must be safe and dependable.”

His remarks matched Mulino’s plan to introduce a “new class of adviser” permitted to offer advice within APRA-regulated super funds. The adjustment seeks to lower barriers to professional guidance, though the draft legislation is still under review.

ART, which manages $370 billion for 2.4 million members, also welcomed the changes. CEO Kathy Vincent described the reforms as beneficial for retirees. “Australians deserve access to retirement advice that suits their needs,” she stated. “These adjustments will help create a more confident and dignified retirement for many.”

Vincent noted that the industry must examine the legislative details to ensure the measures truly serve members. The reforms arrive as super funds face increasing demands for transparency and accountability, particularly after high-profile collapses left members vulnerable to losses.

The real impact of the changes will become clearer once the draft legislation is released. Until then, funds like AustralianSuper and ART are preparing for the shift by expanding their advice services.

The updates reflect a broader effort to modernize Australia’s retirement system. An aging population and rising living costs are driving changes in how financial guidance is provided. While the success of the new rules is not yet certain, the country’s largest funds view them as a necessary move.

AustralianSuper has already launched new digital tools to improve access to advice.

The reforms also address concerns about unethical sales practices in the industry. By tightening anti-hawking rules, the government aims to protect consumers from aggressive marketing tactics.