News From The Regulator

Productivity Commission Inquiry Report

Productivity Commission Inquiry Report

On 10 January 2019, the Productivity Commission Inquiry Report: ‘Superannuation; Assessing Efficiency & Competitiveness’ was publicly released after being handed to Government on 21 December 2018. Key points from the Commission’s Report include: Australia’s superannuation system needs to improve its adaptation to the modern workforce and the growing number of retirees. Structural flaws are resulting…

Strengthening Outcomes for Superannuation Members

Strengthening Outcomes for Superannuation Members

On 12 December 2018, APRA released a package of new and enhanced prudential requirements designed to ensure more robust measures are put in place by RSE Licensees for the oversight and delivery of quality outcomes for superannuation members. The ‘Outcomes Assessment’ requires trustees to annually benchmark and evaluate their performance in delivering ‘sound, value for…

APRA seeks improvements from Superannuation Licensees on Conflicts of Interest

APRA seeks improvements from Superannuation Licensees on Conflicts of Interest

APRA has written to RSE Licensee’s seeking enhanced oversight of outsourcing arrangements with related parties to manage conflicts of interest. APRA’s review of 14 licensees had been prompted by a concern that for some trustees commercial arrangements with related parties may be taking  precedence over outcomes delivered to members.   APRA concluded that: ensuring related party…

APRA Seeks Improvement in Executive Remuneration

APRA Seeks Improvement in Executive Remuneration

On 4 April 2018, APRA released the results of a review of remuneration practices at large financial institutions which found considerable room for improvement in the design and implementation of executive remuneration structures. APRA’s review comprised detailed analysis of executive remuneration practices and outcomes from a sample of 12 regulated institutions including ADI, insurance, and superannuation…

APRA Measures to Strengthen Superannuation Member Outcomes

APRA Measures to Strengthen Superannuation Member Outcomes

Superannuation Member Outcomes: On 13 December 2017, APRA released a consultation package aimed at assisting RSE Licensees to better position themselves for delivering on sound member outcomes.   The package includes proposed changes to the prudential framework to enhance: strategic and business planning; oversight of fund expenditure; and assessment of outcomes for members of RSE’s. The…

Assessing Quality Member Outcomes in Superannuation

Assessing Quality Member Outcomes in Superannuation

    On 31 August 2017, Helen Rowell, Deputy Chairman, APRA, issued a letter to all RSE licensees requesting additional focus by Trustees on delivering to members,  “quality outcomes on an ongoing basis“. ‘Quality outcomes for members’,  was described as:     high quality; and value for money superannuation products and services including; optimal retirement…

New APRA Consultation on Superannuation Governance Proposals

New APRA Consultation on Superannuation Governance Proposals

On 11 August 2017, the Australian Prudential Regulation Authority (APRA)  released a letter to superannuation trustees outlining proposed changes to the superannuation prudential framework to lift operational governance practices of APRA-regulated superannuation trustees (RSE licensees). Helen Rowell, APRA Deputy Chairman, said APRA had identified areas for improvement in some RSE licensees, to better reflect evolving…

APRA Speech: Legacy, Operational Risk & The Changing Consumer

APRA Speech: Legacy, Operational Risk & The Changing Consumer

  On 22 May 2017, Geoff Summerhayes, APRA Executive Board Member delivered a speech to the Actuaries Institute, in which he reflected on legacy, operational risk and the changing consumer describing the part the financial services industry, must play, particularly where they maintain what is termed a ‘social license’ to operate.   As well as stability…

ASIC Releases Regulatory Guide 259:  Risk Management Systems for Responsible Entities

ASIC Releases Regulatory Guide 259: Risk Management Systems for Responsible Entities

ON 27 March 2017, ASIC issued Regulatory Guide RG259: Risk Management Systems for Responsible Entities.  ASIC states the guidance promotes early identification and management of risks by responsible entities to help avoid the adverse consequences that may affect investors. The guide outlines ASIC expectations for responsible entities to have: overarching risk management systems in place;…

ASIC releases findings on CommInsure Investigation

ASIC releases findings on CommInsure Investigation

On 23 March 2017, ASIC released its public report into the investigation of the life insurance business of CommInsure, part of the wealth management business of the Commonwealth Bank of Australia. CommInsure had used out of date medical definitions when determining claims under its polices.  ASIC found this not to be unlawful providing it is clearly disclosed to…

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