AdviserVoiceMargaret Cole Archives - AdviserVoice https://www.adviservoice.com.au/tag/margaret-cole/ Financial planner information & financial planner education/CPD - AdviserVoice Wed, 05 Aug 2026 20:30:24 +0000 en-US hourly 1 https://wordpress.org/?v=7.0.2 Super trustees urged to strengthen oversight of retirement strategy implementation https://www.adviservoice.com.au/2024/07/super-trustees-urged-to-strengthen-oversight-of-retirement-strategy-implementation/ https://www.adviservoice.com.au/2024/07/super-trustees-urged-to-strengthen-oversight-of-retirement-strategy-implementation/#respond Tue, 02 Jul 2024 21:50:24 +0000 https://www.adviservoice.com.au/?p=96583

The Australian Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority (APRA) are calling on superannuation trustees to boost efforts to track and measure the impact of their strategies to improve retirement outcomes for members.

A recent pulse check has shown that while trustees have made good progress, some significant gaps remain a year after a joint APRA and ASIC thematic review[1] identified a lack of urgency by trustees in embracing the intent of the Retirement Income Covenant.

As part of a follow-up survey of the broader superannuation industry, ASIC and APRA asked trustees to share their response to the recommendations and findings from the thematic review to assist members who are retired or approaching retirement as required under the covenant introduced in 2022.

Key observations from 48 survey responses, representing all trustees invited to participate, include:

  • While approximately three quarters of trustees indicated that measuring retirement outcomes was a priority, only incremental progress had been made to measure and track retirement income strategies. Just eight trustees said tracking the effectiveness of retirement-focused assistance to members was a priority.
  • Many trustees were taking steps to better understand the retirement needs of their members and had endeavoured to promote the availability and access to retirement-focused information for members. However, only one in five planned improvements identified by trustees were expected to be completed by mid-2024.

The responses from trustees pointed to several challenges in implementing the covenant, including uncertainty around the financial advice framework, privacy, security, and cost concerns on collecting more member data, and a lack of member engagement and financial capability.

APRA Deputy Chair Margaret Cole said: “The most concerning finding from this survey is the lack of progress being made by trustees in tracking the success of their strategies, especially as this was highlighted as one of the key areas in need of improvement in the thematic review report.

“Without effective success metrics, how can trustees know that their strategies are working? Members deserve better.”

ASIC Commissioner Simone Constant added: “Trustees have a pivotal role to play in improving retirement outcomes for their members, with approximately three million Australians expected to join the six million already eligible to access their superannuation savings over the coming decade.[2]

“Pleasingly, trustee responses to the survey indicate they are pushing ahead with work to refine their strategy implementation. However, we expect trustees to assess gaps and identify opportunities to accelerate progress in closing these gaps, including by leveraging examples of progress outlined in this industry update.”

Download

Report 784 Industry update: Pulse check on retirement income covenant implementation

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Notes:
[1] Information report – Implementation of the retirement income covenant: Findings from the joint APRA and ASIC thematic review, 19 July 2023.
[2] National, state and territory population, September 2023 | Australian Bureau of Statistics (Population by age and sex – national, Table 8).
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The Australian Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority (APRA) are calling on superannuation trustees to boost efforts to track and measure the impact of their strategies to improve retirement outcomes for members.

A recent pulse check has shown that while trustees have made good progress, some significant gaps remain a year after a joint APRA and ASIC thematic review[1] identified a lack of urgency by trustees in embracing the intent of the Retirement Income Covenant.

As part of a follow-up survey of the broader superannuation industry, ASIC and APRA asked trustees to share their response to the recommendations and findings from the thematic review to assist members who are retired or approaching retirement as required under the covenant introduced in 2022.

Key observations from 48 survey responses, representing all trustees invited to participate, include:

  • While approximately three quarters of trustees indicated that measuring retirement outcomes was a priority, only incremental progress had been made to measure and track retirement income strategies. Just eight trustees said tracking the effectiveness of retirement-focused assistance to members was a priority.
  • Many trustees were taking steps to better understand the retirement needs of their members and had endeavoured to promote the availability and access to retirement-focused information for members. However, only one in five planned improvements identified by trustees were expected to be completed by mid-2024.

The responses from trustees pointed to several challenges in implementing the covenant, including uncertainty around the financial advice framework, privacy, security, and cost concerns on collecting more member data, and a lack of member engagement and financial capability.

APRA Deputy Chair Margaret Cole said: “The most concerning finding from this survey is the lack of progress being made by trustees in tracking the success of their strategies, especially as this was highlighted as one of the key areas in need of improvement in the thematic review report.

“Without effective success metrics, how can trustees know that their strategies are working? Members deserve better.”

ASIC Commissioner Simone Constant added: “Trustees have a pivotal role to play in improving retirement outcomes for their members, with approximately three million Australians expected to join the six million already eligible to access their superannuation savings over the coming decade.[2]

“Pleasingly, trustee responses to the survey indicate they are pushing ahead with work to refine their strategy implementation. However, we expect trustees to assess gaps and identify opportunities to accelerate progress in closing these gaps, including by leveraging examples of progress outlined in this industry update.”

Download

Report 784 Industry update: Pulse check on retirement income covenant implementation

———–
Notes:
[1] Information report – Implementation of the retirement income covenant: Findings from the joint APRA and ASIC thematic review, 19 July 2023.
[2] National, state and territory population, September 2023 | Australian Bureau of Statistics (Population by age and sex – national, Table 8).

The post Super trustees urged to strengthen oversight of retirement strategy implementation appeared first on AdviserVoice.

]]> https://www.adviservoice.com.au/2024/07/super-trustees-urged-to-strengthen-oversight-of-retirement-strategy-implementation/feed/ 0 APRA and ASIC commence joint administration of the new Financial Accountability Regime https://www.adviservoice.com.au/2023/10/apra-and-asic-commence-joint-administration-of-the-new-financial-accountability-regime/ https://www.adviservoice.com.au/2023/10/apra-and-asic-commence-joint-administration-of-the-new-financial-accountability-regime/#respond Tue, 03 Oct 2023 20:45:15 +0000 https://www.adviservoice.com.au/?p=91625 The Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC) have published an information package to support the financial services industry in implementing the Financial Accountability Regime (FAR).

The FAR imposes a strengthened responsibility and accountability framework for APRA-regulated entities in the banking, insurance and superannuation industries and their directors as well as their most senior executives. In doing so, the FAR aims to improve the risk and governance cultures of those financial institutions.

Implementing the FAR fulfils recommendations made by the Financial Services Royal Commission that provisions modelled on the Banking Executive Accountability Regime (BEAR) be extended to all APRA-regulated entities.

The FAR replaces the BEAR, which came into effect on 1 July 2018 and was solely administered by APRA. In addition to authorised deposit-taking institutions (ADIs), the FAR will apply to insurance companies, superannuation trustees and licensed non-operating holding companies (NOHCs). Additionally, the FAR introduces conduct-focused prescribed responsibilities, and will be jointly administered by APRA and ASIC.

The FAR will come into force for the banking industry on 15 March 2024 and for the superannuation and insurance industries on 15 March 2025.

Today’s information package comprises:

  • the Joint Administration Agreement between APRA and ASIC setting out the framework within which the regulators will work together to administer the FAR, and
  • a joint information paper providing guidance for ADIs on transitioning from the BEAR to the FAR, supported by the ADI accountability statement guidance and template.

APRA Deputy Chair Margaret Cole said: “Just as the BEAR has helped to sharpen risk culture and governance in the banking sector, we expect the FAR to have a similar positive impact in improving standards of accountability across insurance and superannuation. We are working closely with ASIC to ensure a smooth transition from the BEAR to the FAR, and we encourage industry to engage with both regulators in the lead up to the FAR commencing.”

ASIC Deputy Chair Sarah Court welcomed the extension of the regime to provide accountability in relation to conduct failures.

“We believe the regime will increase transparency and accountability in financial firms and help embed a culture of accountability for misconduct at an individual level – accountable individuals will need to understand and closely engage with their obligations under the FAR,” Ms Court said.

Further details on industry engagement will follow shortly.

Download

APRA and ASIC intend to shortly publish the Regulator Rules and Transitional Rules for ADIs and the Key Functions Descriptions that were released for consultation on 20 July 2023. Included with this release will be reporting form instructions to assist ADIs in providing the required information to APRA and ASIC.

]]> The Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC) have published an information package to support the financial services industry in implementing the Financial Accountability Regime (FAR).

The FAR imposes a strengthened responsibility and accountability framework for APRA-regulated entities in the banking, insurance and superannuation industries and their directors as well as their most senior executives. In doing so, the FAR aims to improve the risk and governance cultures of those financial institutions.

Implementing the FAR fulfils recommendations made by the Financial Services Royal Commission that provisions modelled on the Banking Executive Accountability Regime (BEAR) be extended to all APRA-regulated entities.

The FAR replaces the BEAR, which came into effect on 1 July 2018 and was solely administered by APRA. In addition to authorised deposit-taking institutions (ADIs), the FAR will apply to insurance companies, superannuation trustees and licensed non-operating holding companies (NOHCs). Additionally, the FAR introduces conduct-focused prescribed responsibilities, and will be jointly administered by APRA and ASIC.

The FAR will come into force for the banking industry on 15 March 2024 and for the superannuation and insurance industries on 15 March 2025.

Today’s information package comprises:

  • the Joint Administration Agreement between APRA and ASIC setting out the framework within which the regulators will work together to administer the FAR, and
  • a joint information paper providing guidance for ADIs on transitioning from the BEAR to the FAR, supported by the ADI accountability statement guidance and template.

APRA Deputy Chair Margaret Cole said: “Just as the BEAR has helped to sharpen risk culture and governance in the banking sector, we expect the FAR to have a similar positive impact in improving standards of accountability across insurance and superannuation. We are working closely with ASIC to ensure a smooth transition from the BEAR to the FAR, and we encourage industry to engage with both regulators in the lead up to the FAR commencing.”

ASIC Deputy Chair Sarah Court welcomed the extension of the regime to provide accountability in relation to conduct failures.

“We believe the regime will increase transparency and accountability in financial firms and help embed a culture of accountability for misconduct at an individual level – accountable individuals will need to understand and closely engage with their obligations under the FAR,” Ms Court said.

Further details on industry engagement will follow shortly.

Download

APRA and ASIC intend to shortly publish the Regulator Rules and Transitional Rules for ADIs and the Key Functions Descriptions that were released for consultation on 20 July 2023. Included with this release will be reporting form instructions to assist ADIs in providing the required information to APRA and ASIC.

The post APRA and ASIC commence joint administration of the new Financial Accountability Regime appeared first on AdviserVoice.

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