APRA’s super fund confidentiality settings still unresolved
The Australian Prudential Regulation Authority (APRA) has left open the degree to which superannuation funds will be able to claim confidentiality around how much they pay investment managers and other service providers.
While APRA has made a number of concessions around its data collections from superannuation funds, it has made no commitments on confidentiality beyond engaging in further consultation.
In a letter to superannuation funds outlining proposed enhancements to superannuation data collections, the regulator acknowledged that superannuation funds had raised specific issues around confidentiality.
APRA said the superannuation funds had made submissions indicating concerns about APRA publishing potentially commercially sensitive information on investment manager fees and costs.
“APRA will consult on confidentiality and publication for SRF 332.1 after the reporting standard has been determined and consider issues such as commercial detriment as part of that consultation,” the regulator said.
Among the superannuation funds raising concerns about confidentiality was AustralianSuper which pointed to the potential consequences with respect to sensitive data.
AustralianSuper said that while there might be public benefit in providing some data,”there will however also be situations where this impacts members’ best financial interests”.
“In this instance, some of the information is commercially sensitive and can erode negotiating positions with contractors or undermine competitive pricing of assets,” it said.
“When determining what is publicly released, APRA should also apply the principle of competitive neutrality. Financially material information can place Australian superannuation funds at a competitive disadvantage when competing with global and domestic investment funds not subject to the same requirements.”
The Association of Superannuation Funds of Australia (ASFA) expressed similar concerns and said its member organisations were particularly concerned about cost information associated with individual service providers.
“Disclosing such commercially sensitive information could undermine the negotiating position of superannuation funds and may lead to reduced competition in the market and result in less advantageous arrangements with higher fees/costs,” ASFA said.
Industry Super, Union & Bikie rorts need protecting.
“Disclosing such commercially sensitive information could undermine”…. these clip the Super ticket for rivers of gold to Union & Bikie bosses benefits.
Much to be said about the potential of conflict of interest between super fund trustees, unions and political parties.
Didn’t Hayne talk about having a foot in two canoes? How is this any different?
Requires investigation immediately.
The girls and I at the brothel and the boys at the CFMEU would prefer we keep it to ourselves….wink wink you know what we mean.
Let’s not go down the Craig Thompson labour politician and the Hesta Credit Card days please.
I really thought we broke enough legs and paid enough Public Servants off to avoid all these shenanigans.
And…. if any of you Financial Planners want to disagree just remember $10,000 buys me a Treasury Official and an Annual FASEA exam requirement for the lot of you, and let’s see how you clowns go then. Terms like Qualified Adviser and Anniversary dates just don’t appear.