On 7 October 2025, the Assistant Treasurer and Minister for Financial Services, The Hon Dr Daniel Mulino MP, issued a media release outlining the Albanese Government’s response to recent failures of managed investment schemes (MIS) that led to significant superannuation losses (notably in the Shield and First Guardian funds). The Minister has written to the regulators to identify measures to prevent similar failures, asking the Australian Securities and Investments Commission to assess whether current financial resource requirements for MIS operators are appropriate

The Government also welcomes the outcomes of the Australian Prudential Regulation Authority’s (APRA) thematic review of superannuation platforms, published on the same day, and expects trustees to promptly address its findings and swiftly respond.

APRA’s Thematic Review of Platforms

APRA reviewed trustees responsible for nearly 95% of platform assets against SPS 530 Investment Governance and SPS 515 Strategic Planning and Member Outcomes. It found wide variability in practices and sets out APRA’s observations of “weaker” and “better” practices in onboarding, ongoing monitoring, and remedial action/member transfers. APRA emphasized that the core duties of trustees are the same irrespective of the business model adopted and that trustees remain accountable for the investment menu’s construction. These obligations are reinforced by the commencement of the Financial Accountability Regime (FAR) from 15 March 2025.

Key findings

APRA considers that weaker practices when on-boarding onto the platform include:

  • Onboarding members without a clear best financial interest analysis.
  • Inconsistent application of internal policies.
  • Over‑reliance on external research/ratings.
  • Superficial conflicts management policies.

In monitoring, APRA considers that weaker practices involve ineffective triggers in monitoring frameworks, weak or delayed reporting (including on significant outperformance that could signal risk), and unclear escalation for exceptions or missing data. Remedial action frameworks frequently defaulted to closing underperforming options to new flows while leaving existing members exposed for prolonged periods, with unclear roles and timelines.

The better practices that APRA observed featured:

  • Due diligence that explicitly tested best‑financial‑interests with defined approval thresholds.
  • Blended internal/external analysis across performance, fees, valuation, liquidity, and stress testing.
  • Holding limits calibrated to risk.
  • Robust conflict controls (including structural separation for related‑party options).
  • Comprehensive monitoring suites with forward‑looking indicators, peer set comparisons, and integrated onboarding/monitoring methods.
  • Well‑structured remedial and member transfer frameworks with clear decision-making roles, time‑bound plans, analysis of tax impacts, and empowered member‑voice oversight (e.g., an Office of the Superannuation Trustee).

Next steps

APRA has indicated that it requires all Platform Trustees to:

  1. Determine any and all required actions and timing to strengthen frameworks and practices.
  2. Consider whether they have breached the prudential standards and obligations and inform APRA accordingly.
  3. Review and confirm FAR accountabilities including with reference to the core duties and expectations outlined above. 

APRA has said that it will:

  • issue individual assessment letters, escalate supervision where necessary, actively monitor progress, and take robust regulatory action if enhancements are inadequate; and
  • consider whether further enhancements  prudential standards and guidance are necessary.