RSE Licensees Meet Conduct Obligations in Consumer Deals
A recent update from ASIC and APRA highlights the strong collaboration between the two agencies to protect the financial well-being of Australians.
Meeting Conduct Obligations in 2021
In 2021, RSE (Regulated Superannuation Entity) licensees met their conduct obligations by ensuring members received accurate disclosure and advice, as well as access to complaints processes. This is a critical aspect of maintaining trust in the superannuation industry.
APRA’s Role
As the primary regulator of RSEs, APRA is responsible for ensuring these entities prudently manage their business operations in a manner consistent with member best interest obligations and the delivery of quality member outcomes.
ASIC-APRA Engagement
The two agencies have a long-standing commitment to working together to facilitate cooperation and collaboration. This partnership has strengthened over the years, with regular strategic discussions between ASIC Commissioners and APRA Members, as well as industry-based standing committees comprising senior representatives from each agency.
Key Regulatory Priorities
In 2021, ASIC and APRA will continue to work closely together on key regulatory priorities, including:
- Implementation of consumer credit and superannuation reforms
- Preparation for the Financial Accountability Regime (FAR)
- Improving performance assessment frameworks
COVID-19 Response
The pandemic has amplified the need for alignment in response to common problems. Both agencies worked together with the banking industry to address loan repayment difficulties faced by customers due to the pandemic.
- APRA adjusted capital and provision requirements for loan deferrals
- ASIC ensured consistent messaging to ADIs (Authorised Deposit-taking Institutions) regarding expectations
Future Focus
As Australia enters the next stage of recovery from the COVID-19 pandemic, ASIC and APRA will continue to work together to support the financial system, businesses, and consumers.
- The implementation of Royal Commission Recommendation 6.9 via a statutory obligation to cooperate, share information, and notify each other of suspected entity breaches of laws administered by the other will further formalise this commitment
Conclusion
The strong partnership between ASIC and APRA is crucial in maintaining trust in the financial sector and ensuring the well-being of Australians. The agencies’ continued collaboration on key regulatory priorities and COVID-19 response measures will be essential in supporting the country’s economic recovery.