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.
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.