APRA and the Australian Securities and Investments Commission (ASIC) have jointly welcomed the proposed legislative reforms increasing the role of ASIC in the superannuation sector. In response to recommendations from the Financial Services Royal Commission (FSRC), on January 31, the Treasurer had released the related exposure draft legislation for consultation. The draft legislation introduces important reforms that will support APRA and ASIC to carry out their roles as co-regulators in superannuation. The proposed reforms include expanding the role of ASIC as the conduct regulator while retaining the important role of APRA as the prudential and member-outcomes regulator in superannuation.
In this context, APRA and ASIC have issued a joint letter to superannuation trustees about how regulatory oversight will operate assuming the reforms become law. The letter explains how they will work together to more effectively promote better outcomes for members, acknowledging that in doing so consideration needs to be given to reducing regulatory burden. APRA and ASIC recognize that this involves effectively harnessing each agency’s different approach to regulation and supervision, while minimizing the duplication of regulatory effort. The changes to the role of ASIC will be accompanied by an enhancement in the close co-operation and collaboration between the two regulators, which was strengthened by a Memorandum of Understanding, or MoU, that was updated in November 2019. Legislative reform to further increase this co-operation and collaboration is also proposed.
APRA Deputy Chair Helen Rowell said: “APRA welcomes ASIC having an expanded role in regulating a sector that is growing ever more integral to financial outcomes for Australians, and the broader economy. As the conduct regulator of the financial sector, ASIC has a critical role to play in tackling misconduct in superannuation, while APRA will continue to strengthen its focus on member-outcomes and prudential soundness.”
Keywords: Asia Pacific, Australia, Insurance, Superannuation, Pensions, Prudential Regulator, Conduct Regulator, Superannuation Reforms, ASIC, APRA
Previous ArticleOSFI on Guide and Form for Replicating Portfolio Information Summary
BCBS Finalizes Revisions to Credit Valuation Adjustment Risk Framework
PRA published a statement to insurers that clarifies the approach to application of the matching adjustment during COVID-19 crisis.
EBA published a report on the implementation of selected COVID-19 policies within the prudential framework for banking sector.
EC launched a consultation to revise the network and information systems (NIS) Directive (2016/1148), which was adopted in July 2016 and is the first horizontal internal market instrument aimed at improving the resilience of the EU against cybersecurity risks.
PRA published a statement that outlines its view on the implications of LIBOR transition for contracts in scope of the “Contractual Recognition of Bail-In” and “Stay in Resolution” parts of the PRA Rulebook.
PRA published the policy statement PS15/20 to reflect additional resilience associated with higher macro-prudential buffers in a standard risk environment with a reduction in Pillar 2A capital requirements.
BCBS published the eighteenth progress report on implementation of the Basel III regulatory framework in member jurisdictions.
FCA announced proposals that would provide continued support for certain consumer credit products to users, who are facing a financial impact because of the exceptional circumstances arising from the COVID-19 pandemic.
ACPR published a draft version of taxonomy RAN 1.4.0_PWD1, along with the related documentation, for Solvency II reporting.
BCBS amended the guidelines on sound management of risks related to money laundering and financing of terrorism (ML/FT).