ASIC and APRA clarify MySuper approach in joint letter

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Industry concerns and confusion surrounding the different roles that ASIC and APRA play in regards to superannuation products have been clarified in a joint letter from the two authorities.

The letter, signed by ASIC commissioner Greg Tanzer and APRA member Helen Rowell, is addressed to all RSE licensees and outlines the different and overlapping role each plays.

It acknowledges that there have been concerns about the relationship between the disclosure requirements administered by ASIC, and the data that is required to be reported under APRA’s standards as a result of section 29QC of the superannuation industry act 1993.

This section requires that if an RSE licensee provides information calculated in a particular way to APRA and then gives the same or equivalent information to another person or website, the licensee must ensure the information is calculated in the same way as that given to APRA.

The purpose of this is to improve the comparability of information about superannuation products.

 APRA may then share this information with ASIC in order to aid ASIC’s administration of section 29QC.

“This means that ASIC may have access to data that you provide to APRA for the purposes of checking your compliance with section 29QC,” the letter states. “Further, if an RSE licensee does not follow the calculation methodology in APRA’s instructions to the reporting standards, ASIC may take appropriate disclosure action.”

However, it acknowledges that some superannuation funds are concerned about inconsistent information being provided across multiple channels, and advises RSE licensees that both authorities will be making further efforts to coordinate future guidance.

For “transparency and consistency of information”, ASIC emphasises that its area of focus when considering RSE licensee compliance are aspects of asset allocation, and return information.

The letter also calls for licensees to contact the relevant regulator where they have issues or concerns in regards to the application of section 29QC.

“This feedback helps us provide useful and relevant guidance to industry, and resolve issues as quickly as possible,” it said.

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