The Australian Prudential Regulation Authority (APRA) has issued a response to the recent consultation on enhancements to superannuation data collections relating to indirect investment costs and trustee financial statements reporting. APRA consulted on proposed enhancements relating to trustee financial statements, indirect investment costs, trustee and fund profiles, as well as investments.
APRA has worked closely with industry to increase transparency by enhancing the breadth, depth and quality of APRA's superannuation data collection. The collections help stakeholders understand the flow of members' monies in the superannuation system, including cost of investment management, dividend payments and expenditures from trustee capital. The data will assist APRA in assessing the financial resilience of superannuation funds.
Industry submissions to the consultation were largely supportive of APRA's proposals. Suggestions were provided to reduce reporting burden, and some concerns were raised on the clarity of reporting scope and instructions. APRA has responded to the feedback by updating reporting instructions and, where appropriate, revising the reporting standard to reduce the burden on supervised entities.
Deputy Chair Margaret Cole said the enhanced collections address key gaps in the current reporting framework.
"With trustees responsible for managing billions of dollars in retirement savings, it is crucial that members, regulators, policymakers and other stakeholders have a complete picture of how trustees spend and invest the money entrusted to them. The new data will make it easier to scrutinise and reliably compare performance. Heightened transparency will also intensify the pressure on underperformers to improve," she added.
APRA's response to the consultation feedback has been divided into two releases in order to prioritise the data required on investment costs and financial statements. APRA will release a second response package later this year, covering the remaining topics.
The response paper is available on the APRA website: Phase 2 Depth.
