Intra-fund super advice on APRA’s radar
The prudential regulator has beefed up the reporting requirements for funds in relation to intra-fund advice in order to assess the outcomes being delivered to members.
The prudential regulator has asked super funds for more detailed data on the giving of intra-fund advice and how member insurance arrangements have been affected by the government’s early release scheme.
Funds would now be required to submit monthly data around how many members had been given intra-fund advice related to early release payments, as well as the number of member accounts that had had their insurance cancelled due to account closure or insufficient funds to pay premiums.
In addition, monthly reporting would also include the number of insurance claims that were received, awaiting determination and finalised each month, the number of fraud incidents flagged and whether funds’ fraud risk profiles had changed during the month.
Funds would also face questions around their operational resilience and whether any key business activities had been disrupted as a result of the crisis.
A further quarterly reporting template would also require funds to disclose data around their investment options, foreign currency hedging and member switching.