APRA released the second consultation package on the Superannuation Data Transformation project. As part of the consultation, APRA published two topic papers that form part of Phase 1 of the superannuation data transformation (Breadth), which will address the most urgent gaps in the data collection of APRA, particularly for choice products and investment options. One of these papers (Topic Paper 2) addresses the performance for choice products, investment menu, and investment options; it provides details on the draft reporting standards on components of net return (SRS 705.0) and on investment performance and objectives (SRS 705.1). The second paper (Topic Paper 2) covers the provision of more granular information on member demographics data and contains the draft superannuation reporting standard SRS 611.0. The comment period for this consultation package ends on February 14, 2020.
The data required by draft SRS 705.0 and draft SRS 705.1 will expand the reporting of performance data to choice products, investment menu, and investment options. Data required by these draft reporting standards will also enhance performance reporting for MySuper products. Industry and other stakeholders will be supported in assessing member outcomes and performance of choice and MySuper products as a result of the reporting standards. The reporting standards will also support the prudential supervision of APRA, including enabling APRA to target its supervisory intensity on areas of the industry that are under-performing or where improvements in practices are needed. The data required in draft SRS 611.0 will support the assessment of outcomes to members across different member cohorts, superannuation fund sustainability, and fund strategy, including the impact of legislative changes.
The Superannuation Data Transformation will greatly enhance the information that is reported to APRA by the registrable superannuation entity licensees and will support the industry and other key stakeholders in understanding the drivers of and outcomes provided for members. APRA intends to use this improved data to inform its prudential activities, gain deeper insight into fund operations, and strengthen oversight of the industry. The Superannuation Data Transformation project is intended to drive better industry practices and improve member outcomes by significantly enhancing the comparability and consistency of reported data. The project will make it easier to scrutinize and reliably compare fund and product performance, especially in the choice segment of the market. The release of this second consultation package follows the launch, in early November, of the multi-year, multi-phase project to upgrade the breadth, depth, and quality of the superannuation data collection of APRA.
Each phase will involve the release of multiple topic papers, each covering a different aspect of the consultation. Given the scale and complexity of the Superannuation Data Transformation, APRA has divided the consultation process into three phases:
- Phase 1 (Breadth) will address the most urgent gaps in data collection, particularly for choice products and investment options.
- Phase 2 (Depth) will increase the granularity of the entire collection, taking advantage of the new Data Collection Solution and enhanced data analytic capabilities.
- Phase 3 (Quality) will assess the quality and consistency of additional data reported during Phases 1 and 2 and will review and address any implementation issues.
Comment Due Date: February 14, 2020
Keywords: Asia Pacific, Australia, Insurance, Pensions, Superannuation, SRS 705.0, SRS 705.1, SRS 611.0, MuSuper Product, Data Collection, Superannuation Data Transformation, Reporting, Phase 1, APRA
Previous ArticleFSB Not Planning Guidance on Solvent Wind-Down of G-SIB Portfolios
EBA issued a revised list of validation rules with respect to the implementing technical standards on supervisory reporting.
EBA published its response to the call for advice of EC on ways to strengthen the EU legal framework on anti-money laundering and countering the financing of terrorism (AML/CFT).
NGFS published a paper on the overview of environmental risk analysis by financial institutions and an occasional paper on the case studies on environmental risk analysis methodologies.
MAS published the guidelines on individual accountability and conduct at financial institutions.
APRA published final versions of the prudential standard APS 220 on credit quality and the reporting standard ARS 923.2 on repayment deferrals.
SRB published two articles, with one article discussing the framework in place to safeguard financial stability amid crisis and the other article outlining the path to a harmonized and predictable liquidation regime.
FSB hosted a virtual workshop as part of the consultation process for its evaluation of the too-big-to-fail reforms.
ECB updated the list of supervised entities in EU, with the number of significant supervised entities being 115.
OSFI published the key findings of a study on third-party risk management.
FSB is extending the implementation timeline, by one year, for the minimum haircut standards for non-centrally cleared securities financing transactions or SFTs.