APRA and ASIC Welcome Proposed Reforms for Superannuation Sector
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.”
Related Links
Keywords: Asia Pacific, Australia, Insurance, Superannuation, Pensions, Prudential Regulator, Conduct Regulator, Superannuation Reforms, ASIC, APRA
Previous Article
OSFI on Guide and Form for Replicating Portfolio Information SummaryRelated Articles
PRA Finalizes Supervisory Approach for Non-Systemic Banks in UK
PRA published the policy statement PS8/21, which contains the final supervisory statement SS3/21 on the PRA approach to supervision of the new and growing non-systemic banks in UK.
EBA Finalizes Standards on Methods of Prudential Consolidation
EBA published a report that sets out the final draft regulatory technical standards specifying the conditions according to which consolidation shall be carried out in line with Article 18 of the Capital Requirements Regulation (CRR).
EBA Updates List of Other Systemically Important Institutions in EU
EBA updated the list of other systemically important institutions (O-SIIs) in EU.
BCBS Report Concludes Basel Risk Categories Can Capture Climate Risks
BCBS published two reports that discuss transmission channels of climate-related risks to the banking system and the measurement methodologies of climate-related financial risks.
UK Authorities Welcome FSB Review of their Remuneration Regime
UK Authorities (FCA and PRA) welcomed the findings of FSB peer review on the implementation of financial sector remuneration reforms in the UK.
PRA and FCA Letter on Addressing Risks from Use of Deposit Aggregators
PRA and FCA jointly issued a letter that highlights risks associated with the increasing volumes of deposits that are placed with banks and building societies via deposit aggregators and how to mitigate these risks.
MFSA to Amend Banking Act and Rules in Coming Months to Transpose CRD5
MFSA announced that amendments to the Banking Act, Subsidiary Legislation, and Banking Rules will be issued in the coming months, to transpose the Capital Requirements Directive (CRD5) into the national regulatory framework.
EC Delegated Regulation on Specialized Lending Exposures Under CRR
EC finalized the Delegated Regulation 2021/598 that supplements the Capital Requirements Regulation (CRR or 575/2013) and lays out the regulatory technical standards for assigning risk-weights to specialized lending exposures.
OSFI Proposes to Enhance Assurance Expectations for Basel Returns
OSFI launched a consultation to explore ways to enhance the OSFI assurance over capital, leverage, and liquidity returns for banks and insurers, given the increasing complexity arising from the evolving regulatory reporting framework due to IFRS 17 (Insurance Contracts) standard and Basel III reforms.
ECB Issues Results of Benchmarking Analysis of Recovery Plans of Banks
ECB published results of the benchmarking analysis of the recovery plan cycle for 2019.