APRA has outlined its areas of compliance focus for superannuation funds for 2016.
Total levies on the superannuation industry, excluding SMSFs, will decrease from $130.1 million in 2014/15 to $124.0 million in 2015/16.
APRA has written to RSE (Registrable Superannuation Entity) licensees with concerns around the management of conflicts of interest.
The letter reveals that in 2014 APRA conducted a review to “assess how the superannuation industry was implementing SPS 521 [Superannuation Prudential Standard: Conflicts of Interest] requirements relating to managing conflicts of interest.”
“The statistics provide a central source of information on MySuper products and support the broader transparency objectives of the Stronger Super reforms,” said APRA member Helen Rowell.
This release of statistics covers the September 2013, December 2013, March 2014 and June 2014 quarters. APRA has a duty under the SIS Act to publish quarterly MySuper Statistics, including “fees charged, costs incurred and net returns”.
The Government has issued a ‘statement of expectations’ to many of the regulatory bodies, including the ATO, ASIC and APRA. These statements outline “the Government’s expectations about the role and responsibilities” of the regulatory bodies.
While acknowledging that the regulatory bodies need to act “independently and objectively”, the Government expects that they will “take into account the Government’s broad policy framework, including its deregulation agenda”.
This includes the expectation the bodies will “look for opportunities to reduce compliance costs for business and the community” to contribute to the Government’s $1 billion “red and green tape reduction target”. They are also expected to make a “major contribution to the deregulation agenda and help to boost productivity”.
Below is a summary of the different types of super funds, and there acronyms.
Registrable Superannuation Entities (RSE)
Registrable Superannuation Entities (RSEs) include:
- APRA regulated super funds
- Multi-member ADFs
- Pooled Superannuation Trusts
- Eligible Rollover Funds
But RSEs do not include:
- Public-sector superannuation schemes
APRA maintains a list of RSEs.