POWERED BY MOMENTUM MEDIA
ASIC, APRA urged to co-regulate superannuation
Commissioner Hayne has urged the Australian Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority (APRA), to co-regulate when it comes to superannuation.
He agreed with APRA’s former submission on co-regulation, and recommended that APRA, as the prudential regulator for super, be responsible for establishing and enforcing prudential standards and practices while ASIC oversee the relationship between RSE licensee, which hold Australian financial services licences, and individual consumers.
Hayne noted the current division sees ASIC’s role under the Superannuation Industry (Supervision) Act limited to matters of disclosure, and it falls to APRA to administer the balance of the Act.
What’s more appropriate, according to the Commissioner, is that ASIC’s role be enlarged so that APRA’s remit in respect of the SIS Act be shared with ASIC “in a way that aligns with their traditional roles and strength.”
Hayne said that providing ASIC the power to protect the interests of members would provide some consistency across the two legislative regimes that apply to RSE licensees.
“An RSE licensee holds an AFSL and in holding that licence is subject to the obligations under section 912A of the Corporations Act,” he said. “Those obligations have some general similarity with obligations imposed under section 52 (and section 52A) of the SIS Act.”
“They are also similar to the obligations imposed on RSE licensees who are authorised to offer a MySuper product under section 29VN(a) (and section 29VO) of the SIS Act. It is evident that the same conduct may give rise to breaches of all of these provisions.”
He also said that while APRA’s skills were geared to prudential regulation, enforcement was a fundamental aspect of ASIC’s work, so it would face the similar issues it currently faces in enforcing other legislation.
“For example, the covenants of RSE licensees and their directors under the SIS Act are akin to the duties that ASIC already enforces in respect of responsible entities of managed investment schemes and their officers under the Corporations Act.”
Recommended for you
Super funds had a “tremendous month” in November, according to new data.
Australia faces a decade of deficits, with the sum of deficits over the next four years expected to overshoot forecasts by $21.8 billion.
APRA has raised an alarm about gaps in how superannuation trustees are managing the risks associated with unlisted assets, after releasing the findings of its latest review.
Compared to how funds were allocated to March this year, industry super funds have slightly decreased their allocation to infrastructure in the six months to September – dropping from 11 per cent to 10.6 per cent, according to the latest APRA data.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.73 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
30.15 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.71 3 y p.a(%)
