Data integrity still a challenge for super funds
Super funds have a "good way to go" before they can be considered to be handling the area of data integrity well.
That's the summation of a new report by the Australian Prudential Regulation Authority (APRA), which emphasised the importance of data integrity in the lead-up to the 1 July start of Stronger Super.
Accurate data items are the "building blocks" for members' entitlements and fund reporting, providing key statistics to industry stakeholders including employers and service providers, the regulator stated.
DST Global Solutions sales director Australia and New Zealand Adam Ratner said the adequate collection and classification of data was still a challenge and was placing a burden on systems and resources — in spite what benefits the Government's reforms might bring.
"We are seeing some groups take a tactical approach for the first set of reports due in October, such as using spreadsheets or manually accessing databases to pull reports together, while others are taking a more strategic approach by implementing an automated solution to handle the first reports and ongoing future reports," he said.
Ratner said the former, tactical approach is unnecessarily exposing members to operational risk and inaccurate data, and that people need to be taken out of the process in favour of automation.
"The new data rules are complex and they are ongoing obligations — and they can't be met by one person filling out spreadsheets," he said.
"The full impact of consolidating the reports will not be felt until the first reports are due; however we believe those who are looking to adopt a strategic approach are more likely to provide full data integrity and meet APRA's deadlines."
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