Super CEOs urge regulatory simplification

A roundtable of major superannuation fund chief executives convened by the Australian Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority (APRA) has called for regulatory simplification.

The call has come at the same time as ASIC has said the FAR regime has helped it in honing in on the right responsible personnel within superannuation funds.

The roundtables, convened to discuss the implementation of the Financial Accountability Regime (FAR) to the superannuation sector, involved the chief executives of Insignia Financial, the Australian Retirement Trust, Rest, UniSuper, Cbus, Equity Trustees, First Super, Vision Super, NESS Super, Team Super, AMP Super, Diversa Super, NGS Super and Australian Ethical.

Outlining the outcomes of the roundtables, APRA said the CEO had called for “regulatory simplification to address the challenges of working under multiple regimes”.

“CEOs also highlighted the difficulties in capturing components of the business not regulated by FAR,” it said.

The analysis said that, at the same time, APRA and ASIC echoed the importance of identifying related entities and understanding their connections to effectively manage risks and fulfill RSE licensing obligations.

“Trustees should look to strengthen frameworks for FAR. CEOs and directors must engage in clear and challenging conversations, focusing on reasonable steps and defined role mandates to ensure accountability,” it said.

Looking at the discussions which occurred during the roundtables, APRA said various communications had been discussed, from townhall meetings to performance reviews “to convey the importance of FAR and its integration into the organisation’s DNA”.

It said ASIC had observed that the implementation of the FAR had assisted in it sharpening its focus on accountability and enabling engagement with the appropriate accountable person”.