APRA calls for stronger action by platform trustees

The Australian Prudential Regulation Authority (APRA) has called on superannuation trustees to accelerate and escalate efforts to safeguard members’ investments held in platform products. 

This follows:

• APRA’s publication of a letter to platform trustees today, which sets out APRA’s key findings and required actions following its thematic review of platforms;
   
• ASIC’s investigation and enforcement action relating to the collapse of the Shield and First Guardian managed investment schemes, numerous financial advisers, and Equity Trustees Superannuation Limited (ETSL); 
   
• the recent commitment by Macquarie Investment Management Ltd (MIML) to pay compensation to members who invested in Shield via the MIML platform.

APRA’s thematic review of platforms was flagged in APRA’s 2024-25 Corporate Plan and commenced earlier this year. The review included platform trustees collectively responsible for almost 95 per cent of superannuation platform assets. 

APRA’s letter:

• calls on platform trustees to lift standards relating to onboarding, ongoing monitoring and promoting member outcomes;
   
• outlines APRA’s observations on weaker and current better industry practices; and
   
• requires platform trustees to confirm Financial Accountability Regime (FAR) accountabilities; consider whether they have breached the prudential standards and obligations; and determine a time-bound action plan to lift standards.

“The fact that First Guardian and Shield managed investment schemes were made available to members by some platform trustees has exposed members to the risk of significant loss and uncertainty,” APRA Deputy Chair Margaret Cole said.

“While APRA notes variation in practices across platform trustees, APRA calls on all platform trustees to address any weaknesses and accelerate efforts to lift standards.”

Ms Cole said APRA would escalate supervision intensity to ensure that appropriate steps were being taken by trustees. “We will not hesitate to take robust regulatory action as necessary.” 

APRA’s letter is available on the APRA website at: Strengthening investment governance and member outcomes in Platform Trustees.

Additional background information

Platforms are a significant part of Australia’s superannuation industry. Superannuation members invest around $397 billion via platforms, which is 13.1 per cent of APRA-regulated superannuation fund assets and 28.1 per cent of choice sector assets. Investments via platforms are also growing strongly, at around 14.5 per cent in the 12 months to June 2025. 

Platforms typically provide members with a very broad and extensive investment menu that spans key asset classes and investment options – examples include shares, term deposits, hybrids, credit, and interests in managed investment schemes, listed and unlisted asset classes. Some investment options will be managed by the trustee internally and others will be externally managed by third-party investment managers. Members choose investment options from the platform investment menu, typically with the assistance of a licenced financial adviser.

The key obligations of trustees in relation to investment options made available via platforms are set out in section 52 of the Superannuation Industry (Supervision) Act 1993, SPS 530 Investment Governance and SPS 515 Strategic Planning and Member Outcomes. Trustees must exercise care, skill and diligence in relation to all matters affecting the fund, irrespective of the business model of the trustee. As part of ongoing supervisory focus on Platform Trustees, APRA will consider further enhancements to the relevant prudential standards and guidance.

From 15 March 2025, these obligations were further strengthened through the commencement of the FAR, which applies to trustees as well as their directors and senior executives. 

APRA and ASIC have distinct but complementary regulatory roles relevant to the platform ecosystem. APRA, as the prudential regulator, is responsible for ensuring platform trustees adhere to the requirements in the prudential standards, this relates to the onboarding, ongoing due diligence and monitoring of investment options, as well as promoting good member outcomes. For background:

• MIML’s court enforceable undertaking took into account the independent review into MIML’s investment governance undertaken at APRA’s instigation;
   
• APRA and ASIC confirmed ASIC would lead enforcement action in relation to ETSL;
   
• On 27 August 2025 APRA and ASIC convened a joint roundtable with the CEOs for platform trustees.