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Issue 840, 1 February 2022 
In this issue: 

 

Consumer remediation guidance: consultation reminder 

As reported in ASFA Action issue 834, ASIC is undertaking further consultation on updated and expanded regulatory guidance dealing with the way Australian financial services licensees, credit licensees and retirement savings account providers should conduct remediations to return money owed to consumers. 

ASIC has released Consultation Paper CP 350: Consumer remediation: further consultation, which includes a new draft regulatory guide (currently unnumbered). ASIC has also published REP 707, outlining its response to the submissions received in response to an earlier round of consultation. 

If you have any feedback you would like ASFA to consider in relation to CP 350 and the new draft regulatory guide, please forward it to Helena Gibson by close of business Friday 4 February. 

 

Revision of investment governance standards: consultation reminder 

As reported in ASFA Action issue 827, APRA has been conducting a four-month consultation on proposed revisions to its prudential standard SPS 530 Investment governance. The proposed revisions respond to findings from APRA’s unlisted asset valuation thematic review and its 2018-2019 post-implementation review of the superannuation prudential framework. These reviews identified stress testing, valuation and liquidity management practices as key areas for improvement.  

If you have any feedback you would like ASFA to consider in relation to the consultation, please forward it to Andrew Craston by close of business Wednesday 9 February. 

 

Strengthening financial resilience: consultation reminder 

As reported in ASFA Action issue 834, APRA has released a discussion paper seeking information from superannuation trustees on their plans to maintain the financial resilience needed to protect members’ best financial interests. 

APRA has noted that its prudential standards require superannuation trustees to maintain sufficient financial strength to operate their businesses effectively, including in cases of unexpected expenses such as systems upgrades, corporate restructures or paying fines. Through the discussion paper, APRA is seeking feedback on the use of the operational risk financial requirement (ORFR), reserving practices and protections afforded to trustees via insurance. 

If you have any feedback you would like ASFA to consider in relation to the discussion paper, please forward it to Fiona Galbraith by close of business Friday 11 February. 

 

Consumer data right: Government flags future extension to superannuation 

Announcing the extension of the consumer data right (CDR) to telecommunications, the Government has flagged that its next step in development of the CDR will be its expansion to ‘Open Finance’. 

The Government has indicated that: 

“Open Finance will allow consumers to compare and save across a greater range of financial products covering not only banking, but also general insurance, superannuation, merchant acquiring and non-bank lending service providers. 

Open Finance paves the way for the creation of new and innovative services such as personal finance and life administration apps to take the time, cost and complexity out of everyday tasks and big financial decisions for consumers. Combining Open Finance datasets with banking transaction data can also provide a consumer with a more holistic picture of their financial circumstances that is all held in the one place. 

For example, with a consumers’ consent, an accredited budgeting app could provide the consumer with access to services based on data shared from their bank, energy or telecommunications provider, as well as information and insights relating to their general insurance, non-bank lending or superannuation. This could help consumers achieve savings goals, get better deals and change their consumption behaviours to better suit their lifestyle and needs.” 

The Government will shortly commence consultations with industry and government stakeholders on the rules to apply to the telecommunications sector and “to ensure Open Finance delivers the best outcomes for consumers and encourages innovation”. 

Treasury has released a report on outcomes from the Consumer Data Right (CDR) Strategic Assessment, identifying ‘Open Finance’ as the next priority area to expand the CDR. Of relevance to superannuation, this report notes: 

 

 

ASFA REGULATORY WATCHLIST

ASFA’s Regulatory Watchlist (ARW) tracks developments in Legislation, inquiries, consultations

and other regulatory announcements relevant to superannuation.

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