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ASIC and APRA have both welcomed proposed legislative reforms that will see the corporate regulator’s role in superannuation expanded.
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ASIC welcomes expanded super role
17 February 2020
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9 minute read
The proposed reforms would increase the role of ASIC in superannuation while retaining APRA’s role as the prudential and member-outcomes regulator in superannuation.
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The draft legislation forms part of the government’s response to recommendations of the banking royal commission.
Changes in ASIC’s role will not affect APRA’s role, with the reform proposing to further increase collaboration between the two regulators.
If the new legislation passes, ASIC will be given the power to enforce provisions in the SIS Act concerning consumer protection without limiting any powers APRA currently holds under the same act.
Both APRA and ASIC will share administration of civil and criminal penalty provisions that relate to consumer protection and market integrity.
The legislation also proposes expanding the AFSL regime to give ASIC access to “appropriate powers and enforcement tools” to aid in performing its expanded regulator role.
Expanding the ASFL regime involves creating a new financial service — providing a superannuation trustee service.
ASIC commissioner Danielle Press said the reforms will strengthen ASIC’s ability to effectively regulate superannuation trustee conduct and focus on consumer protection.
“ASIC and APRA have a shared commitment to improving the fitness of the superannuation system for Australians, and we strongly support these reforms,” Ms Press said.
“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 has also welcomed the proposed changes.
“APRA welcomes ASIC having an expanded role in regulating a sector that is growing ever more integral to financial outcomes for Australians and the broader economy,” Ms Rowell said.
“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.”
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