Recommendation 6.3 – General principles for co-regulation
The roles of APRA and ASIC in relation to superannuation should be adjusted to accord with the general principles that:
- APRA, as the prudential regulator for superannuation, is responsible for establishing and enforcing Prudential Standards and practices designed to ensure that, under all reasonable circumstances, financial promises made by superannuation entities APRA supervises are met within a stable, efficient and competitive financial system; and
- as the conduct and disclosure regulator, ASIC’s role in superannuation primarily concerns the relationship between RSE licensees and individual consumers.
- Effect should be given to these principles by taking the steps described in Recommendations 6.4 and 6.5.
Recommendation 6.4 – ASIC as conduct regulator
- Without limiting any powers APRA currently has under the SIS Act, ASIC should be given the power to enforce all provisions in the SIS Act that are, or will become, civil penalty provisions or otherwise give rise to a cause of action against an RSE licensee or director for conduct that may harm a consumer. There should be co‑regulation by APRA and ASIC of these provisions.
Recommendation 6.5 – APRA to retain functions
- APRA should retain its current functions, including responsibility for the licensing and supervision of RSE licensees and the powers and functions that come with it, including any power to issue directions that APRA presently has or is to be given.