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IQ Group pushes for reporting extension
IQ group is pushing for an extension to initial quarterly superannuation reporting requirements, saying data quality may suffer.
Super fund trustees are required to submit initial quarterly reports on 28 October this year. However, superannuation consultants IQ Group has called on the Australian Prudential Regulation Authority (APRA) to push out the timeframe — at least for the first year — from the 20 business days it currently has to submit data to APRA to 30 business days. It could be scaled back to 20 business days after the first 12 months, it said.
IQ Group principal consultant Tony Gold said the current timeframe would produce complications in data quality. "APRA's push for data quality is very important ... (but) if APRA is not able to relax the timeframes they may not get the outcome they want," Gold said.
If super funds tried to comply with the 28-day cycle, reporting might produce duplication and omissions, according to Gold.
The timeframe would put pressure on custodians, who were already implementing new processes, to deliver data to trustees in time for the scheme's accounting, he said.
"Month-end processes will not be able to complete on time as hard closes are staggered to enable a custodian to deal with volume and delivery, and we will find that they will typically have investment information ready for trustees anywhere from business day 12-16," Gold said.
"And further, the option of relying instead on ‘soft close' data at business day 5 would inevitably increase the risk of duplication and/or omission, working against APRA's drive for quality, accuracy and completeness of data."
APRA may find itself dealing with quality issues involving a back-and-forth with super fund trustees, while data quality may mean data can not be compared.
APRA has already acknowledged the complexity new data requirements may pose to super fund trustees and, earlier this year, extended some reporting requirements and reduced the frequency of others.
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