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.
The Government agrees that the roles of APRA and ASIC in superannuation should be adjusted to align with the general principles of the twin peaks model, whereby APRA is the prudential regulator and responsible for system and fund performance, including for licencing and supervision, and ASIC is the conduct and disclosure regulator.
The Government agrees that both ASIC and APRA should have stronger powers to enforce provisions that are civil penalty provisions and other provisions relating to conduct that may harm a consumer.
Regulators’ responsibilities under the Superannuation Industry (Supervision) Act 1993 will be shared in a way that aligns with ASIC and APRA’s mandates.
This also responds to the Productivity Commission’s report Superannuation: Assessing Efficiency and Competitiveness which recommended clarifying the regulators’ roles and powers, including their respective areas of focus.