The Australian Prudential Regulation Authority (APRA) has taken another step towards bringing transparency to the superannuation industry and improving superfund performance with the release of its consultation on superfund data reporting.
The consultation will be divided into three phases with the regulator indicating it will be responding by mid-2020. The first ‘tranche’ will then be rolled out some time close to the end of the year.
According to the statement from APRA, the three phases are:
Phase 1 (Breadth) will address the most urgent gaps in APRA’s data collection, particularly for choice products and investment options;
Phase 2 (Depth) will increase the granularity of the entire collection, taking advantage of APRA’s new Data Collection Solution and enhanced data analytic capabilities; and
Phase 3 (Quality) will assess the quality and consistency of the additional data reported during Phases 1 and 2, and review and address any implementation issues.
“The superannuation industry plays a vital role in protecting Australians’ retirement savings, and it’s increasingly integral to the strength of the economy. With individual RSE licensees responsible for managing many billions of dollars, regulators, policymakers and other industry stakeholders must have a more complete picture of how they are performing,” APRA Deputy Chair Helen Rowell said, in a statement earlier this week that accompanied the release of the discussion paper.
APRA is largely satisfied with the state of our MySuper data collection, but there are some areas that require enhancements; and we need to significantly upgrade the scope and granularity of our data on the choice sector. A lack of industry agreement in areas such as asset class definitions is also hampering the ability to make meaningful industry-wide comparisons, and this consultation seeks to provide clarity and consistency in these areas.