ASIC plans to increase regulatory scrutiny on superannuation

ASIC plans to increase the intensity of its regulatory scrutiny on the superannuation sector, including more shadow shopping.

ASIC Commissioner John Price told a recent conference that the regulator was strengthening its supervision of, and enforcement on, the superannuation sector.

“Another new project we will be implementing is to deliver an enhanced supervisory approach for superannuation. We have already strengthened our team focused on this area,” he said.

This will include building on “public actions in the superannuation sector, including more enforcement outcomes”, and better leveraging new and existing data available to ASIC and APRA.

“We will also increase our focus on the consumer perspective through the incorporation of more consumer testing and shadow shopping.”

“Our strengthened superannuation team will also move towards a more intensive engagement model, where superannuation stakeholders will deal with specific ASIC staff on a more consistent and regular basis.”

Price said that ASIC plans to “heighten the intensity of our regulatory scrutiny in superannuation”.

He noted that ASIC is not the sole regulator of superannuation. Instead ASIC, APRA and the ATO “all have a common interest in this area”.

“Accordingly, you can expect our approach to continue to build on our already close working relationship with these agencies.”

“This common interest also necessarily means there are boundaries to ASIC’s jurisdiction in super, and some issues will be in the remit of other regulators.”

“Nevertheless, we plan to do everything within our powers to improve member outcomes in superannuation.”

The regulation of superannuation, including by ASIC, is likely to be raised in the interim report of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services, which is due by the end of September.

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