The Australian Prudential Regulation Authority (APRA) has been called to improve its supervision of superannuation providers. 

A new review says APRA should identify emerging and systemic risks in the superannuation industry more effectively, with a focus on enhancing staff training in risk management capabilities. 

The report highlighted the importance of APRA's supervisory activities and recovery and resolution planning.

In response, APRA has committed to enhancing its capabilities in these areas, particularly through the development of recovery and resolution plans. 

The regulator says it will concentrate on risks specific to the superannuation sector, such as the valuation of unlisted and illiquid assets, evolving investment strategies, and product complexity. 

Additionally, broader risks applicable across industries, including market downturn scenarios, service provider availability, and cyber risks, will be addressed.

The review report, conducted by the Financial Regulator Assessment Authority (FRAA), praised APRA's effective supervision function while noting that its resolution function requires further development. 

FRAA's recommendations included increased investments in data and technology, improved transparency, and heightened recovery planning and resolution readiness.

John Lonsdale, APRA's chair, welcomed the assessment of the regulator's capabilities in the superannuation sector. 

He expressed support for the recommendations, highlighting APRA's commitment to improving outcomes for superannuation members.