The Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC) have jointly welcomed proposed reforms to expand ASIC’s role as a conduct regulator in superannuation.
This was in response to recommendations from the financial services royal commission that support APRA and ASIC to carry out their roles as co-regulators in superannuation.
Under the reforms, APRA will retain its role as the prudential and member-outcomes regulator in superannuation, while changes to ASIC’s role will also entail further cooperation and collaboration between the two regulators.
“The reforms will strengthen ASIC’s ability to effectively regulate superannuation trustee conduct and focus on consumer protection in our regulation of superannuation,” said Danielle Press, ASIC commissioner. “We want to assure trustees that ASIC and APRA will work together to ensure the new regime is effective and to reduce duplication of regulatory effort.”
“APRA welcomes ASIC having an expanded role in regulating a sector that is growing ever more integral to financial outcomes for Australians, and the broader economy,” said Helen Rowell, APRA deputy chair. “As the conduct regulator of the financial sector, ASIC has a critical role to play in tackling misconduct in superannuation, while APRA will continue to strengthen its focus on member-outcomes and prudential soundness.”
The two regulators issued a joint letter to superannuation trustees, explaining how they will work together to more effectively promote better outcomes for members.