APRA’s proposed reporting requirements implement the transparency and accountability recommendations from the Government’s Stronger Super reforms, and the proposals APRA previously consulted on in 2009. The proposed new requirements also support the implementation of prudential standards, MySuper products and SuperStream. These proposed revisions will be the first changes to the reporting requirements for superannuation since 2004.

The main proposed changes to reporting requirements include: information about each trustee, fund, sub-fund, MySuper product and select choice investment options. This replaces the focus at fund level in the current data collection and responds to previous industry commentary on the limitations of APRA’s fund-level superannuation reporting; information about investment returns for each MySuper product and select choice investment options.

This will allow greater comparability across the industry, particularly between MySuper products; and the collection of expanded information about investments, including looking through investment structures to identify and understand ultimate investment asset allocation and costs.

APRA Deputy Chairman Ross Jones said APRA is proposing material changes to the superannuation data collection. ‘Overall, APRA expects that this new data collection will be of significant benefit to all industry stakeholders by providing greater transparency of investments and costs.’

‘As with the introduction of prudential standards for superannuation, these proposals are raising the bar to bring the superannuation data collection to a level that is consistent with the other industries APRA regulates,’ he said.

This consultation package outlines a substantially larger data collection than is currently in place for the superannuation industry. APRA acknowledges the extensive scope of the proposals and encourages industry to provide feedback as to how the proposed data collection would best support objectives of transparency and comparability across the industry, as well as APRA’s prudential supervision.

Consultation on the draft reporting requirements closes on 16 November 2012 and the final superannuation reporting standards are expected to be determined and released in the first half of 2013. The requirements in the final reporting standards are expected to take effect from 1 July 2013 with the first publication using the new data in late 2013.

The discussion paper and the 31 draft reporting forms and instructions can be found on the APRA website.

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Accompanying the discussion paper is a draft authorisation application form together with instructions, as well as draft Prudential Standard SPS 410 MySuper Transition (SPS 410) which sets out requirements for trustees moving member balances into a MySuper product.
On 3 November 2011, the Federal Government introduced the Superannuation Legislation Amendment (MySuper Core Provisions) Bill 2011 into Parliament under which a registrable superannuation entity (RSE) licensee intending to offer a MySuper product must seek authorisation from APRA.

The MySuper authorisation package released today builds on APRA’s release on 27 April 2012 of draft prudential standards for superannuation. A number of elements in the draft authorisation application form request the submission of documents that will be required under the prudential standards.

APRA Deputy Chairman Ross Jones said the proposed authorisation requirements have been carefully aligned with the legislative requirements.

‘We encourage RSE licensees considering offering a MySuper product to use the draft application form and instructions in discussions with their Board on their plans, and to open discussions with APRA supervisors on the issue as soon as possible.’

The authorisation process for RSE licensees wishing to offer MySuper products will commence from 1 January 2013. Once authorised, RSE licensees can offer these products from 1 July 2013 onwards.

Draft SPS 410 outlines requirements for all RSE licensees during the transition period from 1 July 2013 to 1 July 2017, by which date all accrued default amounts must be in a MySuper product except in limited circumstances.

The consultation package can be found on the APRA website at: www.apra.gov.au/Super/Pages/Superannuation-reforms-2011-2013.aspx

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APRA’s response paper details the main issues raised in the 41 submissions received and APRA’s response to those issues, as well as 11 draft prudential standards.

This response package follows release in September 2011 of APRA’s discussion paper, Prudential standards for superannuation, which outlined APRA’s approach to the introduction of prudential standards for the superannuation industry.

In response to submissions received, APRA has made revisions to some aspects of its proposals, most significantly in relation to the operational risk financial requirement and to the scope of the standard in relation to defined benefit funds.

APRA Deputy Chairman Ross Jones said there was a high level of interest shown by industry and other stakeholders in APRA’s proposals.

‘It is encouraging that the submissions were unanimously supportive of APRA’s broad objectives in establishing prudential standards for superannuation and, consequently, raising the minimum requirements for trustees to prudently manage members’ money.

‘The draft prudential standards clearly articulate that the primary responsibility for prudent management of superannuation funds rests with trustees and the boards of directors,’ Mr Jones said.

The draft prudential standards released today include six standards covering matters common to other APRA-regulated industries, where APRA’s approach has been to harmonise its requirements where appropriate.

APRA’s response paper and the 11 draft prudential standards can be found on the APRA website 

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