APRA looks to deep dive on super funds unlisted assets
The Australian Prudential Regulation Authority (APRA) is proposing to demand more information from superannuation funds on their unlisted asset exposures.
The regulator has made its intentions clear as part of its data transformation project noting that with an increased focus on unlisted assets and valuations of those assets, it is proposing to collect the exposures of all directly-held investments in unlisted assets (with no materiality threshold) and their valuation information.
As well, APRA said it proposed to collect information on material unlisted investments held through unlisted investment vehicles, including special purpose vehicles and wholly vehicles.
“APRA seeks feedback on the proportionality of the proposed materiality threshold to the complexity of RSE licensee’s investment arrangements and the availability of valuations data for these investments on a look through basis,” the regulator’s discussion paper said.
“APRA seeks feedback on any asset classes and/or investment structures that would be challenging to report on a look through basis, and any alternative information the RSE licensee uses to address this challenge. APRA is open to applying a different materiality threshold in respect of indirectly held unlisted assets if it is helpful to industry. At a minimum APRA proposes that information on the value or proportion of assets revalued in the quarter would be reported. If the proposed data on valuation methodology is not available, RSE licensees may report ‘not available’.”