The Superannuation System and Its Regulatory Framework
Core architecture
Australian superannuation is a defined contribution system built on the three pillars: the age pension (safety net), compulsory employer contributions (Superannuation Guarantee), and voluntary savings. Candidates must know the key statutes and regulators: the Superannuation Industry (Supervision) Act 1993 (SIS Act) and SIS Regulations govern trustee conduct; APRA prudentially supervises funds; ASIC regulates conduct and disclosure; the ATO administers the Superannuation Guarantee, contribution caps, and self-managed funds. The Superannuation (Resolution of Complaints) Act underpins the Australian Financial Complaints Authority (AFCA).
Trustee duties and the sole purpose test
Trustees must act in members' best interests, keep the fund's assets separate, formulate an investment strategy, and satisfy the sole purpose test (SIS s 62): the fund must exist only for retirement and permitted ancillary benefits. Breach can lead to loss of tax concessions and civil or criminal penalties. The best financial interests duty (Your Future, Your Super reforms) tightened the earlier best-interests obligation.
Traps
Questions often swap regulators (APRA vs ASIC vs ATO), confuse the SIS Act with the tax legislation, or test whether a benefit is a permitted ancillary benefit (e.g., death, disability, hardship). Remember MySuper as the default low-cost product and Stapled Super Funds for new employees without a chosen fund.
Rule of thumb
Ask: Who supervises? Prudential = APRA; conduct/disclosure = ASIC; SG and caps = ATO; complaints = AFCA. This mapping resolves most regulator questions.