Boards of superannuation funds are failing to manage conflicts related to valuing their multibillion-dollar unlisted asset portfolios and may lack the expertise to do so properly, the prudential regulator has warned, raising the prospect members could have lower retirement savings than they realise.

The $4.1 trillion sector may also lack the independence and capacity to challenge the pricing of private assets by investment teams, with members of valuation committees sometimes holding roles at funds where their pay or bonuses are tied to favourable pricing.