Treasurer Josh Frydenberg released exposure draft legislation for consultation on 31 January in response to recommendations from the Hayne royal commission.
The proposed reforms include expanding ASIC’s role as conduct regulator while retaining APRA’s important role as the prudential and member-outcomes regulator in superannuation.
The changes to ASIC’s role will be accompanied by an enhancement in the close co-operation and collaboration between the two regulators strengthened by a memorandum of understanding updated last year.
The government also proposed legislative reform to further increase this co-operation and collaboration.
Further, both regulators issued a joint letter to superannuation trustees about how regulatory oversight will operate assuming the reforms become law, explaining how they will work together to more effectively promote better outcomes for members, acknowledging that in doing so consideration needs to be given to reducing regulatory burden.
In strongly supporting the reforms, ASIC commissioner Danielle Press said ASIC and APRA have a shared commitment to improving the fitness of the superannuation system for Australians, and they strongly support these reforms.
“The reforms will strengthen ASIC’s ability to effectively regulate superannuation trustee conduct and focus on consumer protection in our regulation of superannuation,” Ms Press said.
“All trustees have an interest in a robust regulatory system, without gaps in member protection. We want to assure trustees that ASIC and APRA will work together to ensure the new regime is effective and to reduce duplication of regulatory effort.”
APRA deputy chair Helen Rowell welcomed ASIC having an expanded role in regulating a sector that she said is growing ever more integral to financial outcomes for Australians and the broader economy.
“As the conduct regulator of the financial sector, ASIC has a critical role to play in tackling misconduct in superannuation, while APRA will continue to strengthen its focus on member-outcomes and prudential soundness,” Ms Rowell said.
