Watchdog warns Australia pension funds of ‘Intense’ scrutiny 

 As the government initiate an analysis of recent alternations to the sector Australia’s $3.3 trillion (USD$2.2 trillion) pensions industry warns of ‘intense’ scrutiny. 

Australian Prudential Regulation Authority board member Margaret Cole said in a speech in Brisbane on Wednesday, that diligent testing of fund performance is likely “here to stay”.

The country’s so-called pension industry continues to shrink as small and underperforming large companies. 

In about 5 years, the funds under government have government vision have gone from 200 to 140 as Cole said.

As for annual performance APRA has test estimated 69 a product on investment performance, fees and costs last week.

The funds that are ineffective for a second year are forbidden to admit new members.

On Wednesday, Australia’s Minister of Financial service announced a review of industry-improving legislation which was introduced by the previous government at the end of the year.

The review will evaluate the performance government as well as measures such as consumer comparison tools, which will make it easier for Australians to keep their pension fund when changing jobs.

Cole said that she would not foresee the future of the industry but if APRA design it, it would not look like what it does today.

 As Cole said the regulator will continue to push for a board renewal to ensure that funds' boards have the skills, capabilities and scale to oversee strategy and risk.