APRA released a discussion paper and a topic paper as part of phase 1 of the Superannuation Data Transformation project. The discussion paper describes the multi-year data transformation project, which APRA is undertaking to upgrade the breadth, depth, and quality of its superannuation data collection. The topic paper (also called topic paper 1) provides details of the proposed changes to reporting requirements for the Registrable Superannuation Entity (RSE) Structure and Profile. Accompanying the topic paper are the draft superannuation reporting standards on RSE structure (SRS 605.0) and RSE profile (SRS 606.0). Comment period for the topic paper closed on January 17, 2020. APRA will also be engaging with industry participants via round-table discussions and undertaking a pilot collection of the proposed data set out in the draft reporting standards.
Given the scale and complexity of the Superannuation Data Transformation, APRA has divided the consultation 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.
Each phase will involve the release of multiple topic papers, each covering a different aspect of the consultation. This first topic paper includes details about objectives of the proposed changes, drivers for change, the current and proposed state, and specific areas of the proposals for which APRA is requesting feedback. The proposals in the topic paper should be read in conjunction with the discussion paper and the draft reporting standards SRS 605.0 and SRS 606.0. The proposals in draft SRS 605.0 and SRS 606.0 will lay the foundation to collect more data at superannuation product and investment option levels and for enhanced expense data. SRS 605.0 is expected to apply from June 30, 2020 while SRS 606.0 is expected to apply to reporting periods ending on or after June 30, 2020. APRA intends to respond to Phase 1 of the consultation and finalize changes to its reporting standards by mid-2020. The first tranche of data collected under Phase 1 is due to be published in late 2020.
The Superannuation Data Transformation will greatly enhance the information that is reported to APRA by RSE licensees and 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.
Comment Due Date: January 17, 2020
Keywords: Asia Pacific, Australia, Insurance, Pensions, Superannuation, Superannuation Data Transformation, Reporting, SRS 605.0, SRS 606.0, Data Collection, Phase 1, APRA
Scott is a Director in the Regulatory and Accounting Solutions team responsible for providing accounting expertise across solutions, products, and services offered by Moody’s Analytics in the US. He has over 15 years of experience leading auditing, consulting and accounting policy initiatives for financial institutions.
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