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
EBA Launches Stress Tests for Banks, Issues Other Updates
The European Banking Authority (EBA) launched the 2023 European Union (EU)-wide stress test, published annual reports on minimum requirement for own funds and eligible liabilities (MREL) and high earners with data as of December 2021.
EBA Proposes Standards for IRRBB Reporting Under Basel Framework
The European Banking Authority (EBA) proposed implementing technical standards on the interest rate risk in the banking book (IRRBB) reporting requirements, with the comment period ending on May 02, 2023.
FED Issues Further Details on Pilot Climate Scenario Analysis Exercise
The U.S. Federal Reserve Board (FED) set out details of the pilot climate scenario analysis exercise to be conducted among the six largest U.S. bank holding companies.
US Agencies Issue Several Regulatory and Reporting Updates
The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.
ECB Issues Multiple Reports and Regulatory Updates for Banks
The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.
HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements
The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.
EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR
The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.
CBIRC Revises Measures on Corporate Governance Supervision
The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.
HKMA Publications Address Sustainability Issues in Financial Sector
The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.
EBA Updates Address Basel and NPL Requirements for Banks
The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.
