Superannuation funds should only have to provide data to the regulators once – not multiple times.
That is the message being delivered by the Association of Superannuation Funds of Australia (ASFA) which has used a submission to the Federal Treasury to argue that it be made mandatory for regulators such as ASIC and the Australian Prudential Regulation Authority (APRA) to “collaborate on the collection of data and broader communication with the industry”.
It said that the objective should be that data and communication is reported only once through centralised, consistent, points of data collection and access or shared by the relevant regulators and other agencies as necessary.
“Currently regulators can communicate or request the same thing from superannuation providers at the same time,” the ASFA submission said. “This is highly inefficient and increases risks and costs significantly.”
“Ultimately it is superannuation fund members who pay for these additional costs, for little discernible benefit,” it said.
A member of the super fund has approached ASIC to investigate potentially misleading or deceptive representations by UniSuper regarding the holdings of its sustainable portfolios.
The median growth fund delivered 1.9 per cent in March, adding to the “stunning” rally that has seen super funds gain 11 per cent since November.
Vanguard has affirmed its support for the current super performance test, emphasising the importance of keeping the process straightforward.
While some superannuation funds have gone down the route of internalisation, others say they favour ‘smart partnering’ with external managers for diversification appeal.
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