APRA Releases Consultation on Superannuation Data Transformation
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.
Related Links
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
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
David Fihrer
Skilled life insurance actuary; subject matter expert on IFRS 17 and source of earnings
Previous Article
FSB Not Planning Guidance on Solvent Wind-Down of G-SIB PortfoliosRelated Articles
EC Consults on PSD2 and Open Finance; EU Reaches Agreement on DORA
The European Commission (EC) published a public consultation on the review of revised payment services directive (PSD2) and open finance.
EC Mandates ESAs to Propose Amendments to SFDR Technical Standards
The European Commission (EC) has issued two letters mandating the European Supervisory Authorities (ESAs) to jointly propose amendments to the regulatory technical standards under Sustainable Finance Disclosure Regulation or SFDR.
EBA Examines Supervisory Practices, Issues Deposits Reporting Template
The European Banking Authority (EBA) published its annual report on convergence of supervisory practices for 2021. Additionally, following a request from the European Commission (EC),
US Agency Publications Address Basel, Reporting, and CECL Developments
The Farm Credit Administration published, in the Federal Register, the final rule on implementation of the Current Expected Credit Losses (CECL) methodology for allowances
SEC Extends Comment Period on Climate Risk Disclosures
The U.S. Securities and Exchange Commission (SEC) looks set to intensify focus on crypto-assets and cyber risk and extended the comment period on the proposed rules to enhance and standardize climate-related disclosures for investors.
APRA Reduces Committed Liquidity Facility, Issues Other Updates
The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility and issued an update on the operational preparedness for zero and negative market interest rates.
CMF Consults on Basel Rules, Presents Roadmap to Address Climate Risks
The Commission for the Financial Market (CMF) in Chile published capital adequacy ratios (as of February 2022, January 2022, and December 2021) for 17 banks and for the banking system.
PRA Issues Statement on NPEs and Policy on Trading Activity Wind-Down
The Prudential Regulation Authority (PRA) issued a statement on the European Banking Authority (EBA) guidelines on management of non-performing exposures (NPEs) and forborne exposures.
EBA Updates Standards for 2023 Benchmarking of Internal Approaches
The European Banking Authority (EBA) updated the implementing technical standards that specify the data collection for the 2023 supervisory benchmarking exercise in relation to the internal approaches used in market risk, credit risk, and IFRS 9 accounting.
EIOPA Responds to Stakeholder Views on Blockchain in Insurance
The European Insurance and Occupational Pensions Authority (EIOPA) published a feedback statement on the responses received to the consultation on blockchain and smart contracts in insurance.
