The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry made a number of recommendations around the roles and responsibilities of the superannuation industry regulators, including that ASIC become the primary superannuation conduct regulator.
The Government is today releasing exposure draft legislation for public comment which implements recommendations 3.8, 6.3, 6.4 and 6.5 of the Royal Commission.
- Recommendation 3.8 and 6.3 will adjust APRA and ASIC’s roles in relation to superannuation to accord with the principles that APRA is the prudential regulator and ASIC the conduct and disclosure regulator.
- Recommendation 6.4 will give ASIC joint responsibility for enforceable provisions in the SIS Act which have consumer protection as their touchstone.
- In addition, the coverage of the Australian financial services licensing regime in superannuation will be extended. This will ensure ASIC has access to appropriate powers and enforcement tools, and can successfully perform its role as superannuation conduct regulator under the recommendations above.
- Recommendation 6.5 ensures that APRA’s role is unchanged. APRA remains responsible for prudential and member outcomes regulation in superannuation.