Mackay Chapman March APRA Update
This month’s APRA update:
- APRA warns super trustees to prepare for operational shocks
- APRA reports modest progress on gender pay gap
- New general insurer licensed in Australia
- Superannuation assets approach $4.5 trillion
- Bank of Nova Scotia exits Australian banking market
Key details for each are below.
APRA warns super trustees to prepare for operational shocks
In remarks delivered to the Conexus Chair Forum, APRA Deputy Chair Margaret Cole emphasised that governance, operational resilience and cyber preparedness will remain key supervisory priorities for the superannuation sector.
The speech highlighted several recent industry disruptions, including credential-stuffing cyber attacks and system outages that temporarily prevented members from accessing fund services such as pension payments and rollovers.
Cole stressed that while unexpected events cannot be predicted, trustees are expected to prepare for them. The regulator pointed to the implementation of prudential standard CPS 230 as a central mechanism for strengthening operational resilience, particularly in areas involving third-party service providers.
Cyber security was also singled out as an ongoing concern. APRA has continued supervision of funds affected by recent cyber incidents and has reiterated expectations that entities strengthen authentication controls and improve information-sharing across the industry.
Investment governance was another area flagged for continued scrutiny, particularly for platform trustees following the collapse of managed investment schemes such as First Guardian and Shield. APRA indicated it will continue using supervisory tools including licence conditions and enforceable undertakings to address governance weaknesses.
APRA reports modest progress on gender pay gap
APRA has reported an average total remuneration gender pay gap of 5.6% for 2024 under the Workplace Gender Equality Agency reporting framework.
The figure represents a slight increase of 0.3 percentage points compared with the previous year, largely due to CEO remuneration being included in the WGEA dataset for the first time. When CEO remuneration is excluded, APRA reports an underlying gender pay gap of 4.8%, reflecting a 0.5 percentage point improvement year-on-year.
Internal analysis indicates the remaining gap is driven partly by workforce composition. Women remain underrepresented in technical, specialist and leadership roles, which tend to attract higher market remuneration.
APRA says it will continue addressing structural drivers of the gap through initiatives including balanced recruitment practices, flexible work arrangements and gender-neutral parental leave, alongside a workforce diversity target of 40% women, 40% men and 20% flexible representation.
New general insurer licensed in Australia
APRA has granted AmTrust Specialty Limited a licence to operate as a general insurer under the Insurance Act 1973.
The licence allows the company to conduct general insurance business in Australia and places it under APRA’s prudential supervision framework, which governs capital requirements, governance standards and risk management obligations for insurers.
The regulator maintains a public register of authorised insurers, which has been updated to reflect the approval.
Superannuation assets approach $4.5 trillion
APRA’s latest quarterly superannuation statistics show the system continuing to expand, with total assets reaching $4.49 trillion as at 31 December 2025.
Assets across APRA-regulated funds rose to $3.18 trillion, up 9.1% year-on-year. Self-managed super fund assets increased to $1.06 trillion, while public sector schemes and life office statutory funds also recorded moderate growth.
Contribution flows were strong over the year, with total contributions increasing 11.5% to $220.8 billion. Employer contributions rose 8.6% to $156.3 billion, while member contributions grew more rapidly, rising 19.2% to $64.5 billion.
Benefit payments also increased, climbing 12.5% to $139.9 billion. Lump-sum payments accounted for $77.6 billion and pension payments $62.3 billion over the same period.
Despite higher outflows, net contribution flows remained positive at $72.2 billion for the year.
Bank of Nova Scotia exits Australian banking market
APRA has revoked the authorised deposit-taking institution licence of the Bank of Nova Scotia following the bank’s decision to withdraw from the Australian market.
The revocation was granted at the bank’s request and removes the institution from APRA’s register of authorised ADIs.
The move reflects a broader trend of international banks reassessing their presence in smaller markets where scale and regulatory costs can make operations less attractive.
The contents of this article do not constitute legal advice and it is not intended to be a substitute for legal advice and should not be relied upon as such. It is designed and intended as general information in summary form, current at the time of publication, for general informational purposes only. You should seek legal advice or other professional advice in relation to any particular legal matters you or your organisation may have.
