Featured Product

    APRA Releases Heatmap to Assess Performance of Superannuation Products

    December 10, 2019

    APRA published the first heatmap providing assessments of the performance of every MySuper superannuation product, along with the frequently asked questions that provide guidance for understanding the heatmap. The primary users of the heatmap will be the registrable superannuation entity (RSE) licensees. However, the insights the heatmap provides will benefit a wide range of stakeholders, including policymakers and advisors. APRA intends to refresh the heatmap at least annually, but will update the heatmap in the first half of next year to assist trustees and other stakeholders in assessing any early improvements being made. APRA also published the Data Insights paper that outlines key insights gleaned from the heatmap data.

    The MySuper Product Heatmap provides additional transparency on the outcomes being delivered by all trustees providing MySuper products. It is designed to lift industry practices and enhance member outcomes by publicly identifying which MySuper products are under-performing and the areas they need to improve. The heatmap uses a graduating color scheme to provide credible, clear, and comparable insights into MySuper products across three areas: investment performance, fees and costs, and sustainability of member outcomes. The key insights from the data include the following:

    • Member outcomes vary widely across the industry and under-performance is evident across all industry sectors and investment risk profiles
    • Higher fees are generally correlated with lower net returns, although there are exceptions
    • More single-strategy products outperform the investment benchmarks than life-cycle product stages
    • Low-balance accounts are most impacted by administration fees, while high-balance accounts are most impacted by percentage-based fees

    APRA is integrating the heatmap into its risk assessment and supervisory intensity model, which is aligned with its new enforcement approach. This ensures that the insights provided in the heatmap lead to a level of supervisory intensity and oversight that appropriately reflects the quality of the outcomes being delivered by each registrable superannuation entity licensee. In developing the heatmap, APRA has included metrics that reflect outcomes relative to peers and appropriate benchmarks. For investment performance, measures of performance relative to benchmark portfolios provide additional insights into the value that registrable superannuation entity licensees add in setting and implementing the investment strategy for their MySuper products.

     

    Related Links

    Keywords: Asia Pacific, Australia, Insurance, Superannuation, Pensions, Heatmap, MySuper Product, RSE Licensee, APRA

    Related Articles
    News

    BIS Paper Studies Impact of Fintech Lending on Small Businesses in US

    The Bank for International Settlements (BIS) published a paper that studies impact of fintech lending on credit access for small businesses in U.S.

    September 26, 2022 WebPage Regulatory News
    News

    UK Regulators Issue CRR Changes and Stress Test Scenarios for Banks

    The Prudential Regulation Authority (PRA) issued the policy statement PS8/22 to amend the Own Funds and Eligible Liabilities (CRR) Part of the PRA Rulebook and update the supervisory statement SS7/13 titled "Definition of capital (CRR firms).

    September 26, 2022 WebPage Regulatory News
    News

    EBA Launches EU-Wide Transparency Exercise in 2022

    The European Banking Authority (EBA) launched the EU-wide transparency exercise for 2022, with results of the exercise expected to be published at the beginning of December, along with the annual Risk Assessment Report.

    September 23, 2022 WebPage Regulatory News
    News

    SRB on CRR Quick-Fix to Policy for Multiple Point of Entry Banks

    The Single Resolution Board (SRB) welcomed the adoption of the review of the Capital Requirements Regulation, or CRR, also known as the "CRR quick-fix."

    September 22, 2022 WebPage Regulatory News
    News

    EC Rule Lists Advanced Economies for Market Risk Capital Calculations

    The European Commission (EC) recently adopted the Delegated Regulation 2022/1622, which sets out the regulatory technical standards to specify the countries that constitute advanced economies for the purpose of specifying risk-weights for the sensitivities to equity.

    September 21, 2022 WebPage Regulatory News
    News

    EBA Publishes Final Regulatory Standards on STS Securitizations

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.

    September 20, 2022 WebPage Regulatory News
    News

    ECB Further Reviews Costs and Benefits Associated with IReF

    The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.

    September 15, 2022 WebPage Regulatory News
    News

    EBA Publishes Funding Plans Report, Receives EMAS Certification

    The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).

    September 15, 2022 WebPage Regulatory News
    News

    MAS Launches SaaS Solution to Simplify Listed Entity ESG Disclosures

    The Monetary Authority of Singapore (MAS) set out the Financial Services Industry Transformation Map 2025 and, in collaboration with the SGX Group, launched ESGenome.

    September 15, 2022 WebPage Regulatory News
    News

    BCBS to Finalize Crypto Rules by End-2022; US to Propose Basel 3 Rules

    The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.

    September 15, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8521