Government & regulation

Reforms of the core regulatory framework for superannuation

4 February 2021

Government reforms that expand ASIC’s role in superannuation commenced on 1 January 2021. The reforms enable ASIC to play a more effective role in regulating conduct in the superannuation industry to promote better consumer outcomes and market integrity. JANE ECCLESTON, ASIC’s Superannuation Senior Executive Leader, explains what the reforms mean for trustees, ASIC’s approach to the changes, and how ASIC and APRA will continue to work together as co-regulators of superannuation.

Superannuation is for the future financial security of Australians, and trustee misconduct significantly impacts members’ retirement savings. The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry (Royal Commission) recommended that ASIC play a greater role in regulating the superannuation industry. In response, the Government introduced a number of legislative reforms in the Financial Sector Reform (Hayne Royal Commission Response) Act 2020 and supporting regulations, most of which started on 1 January 2021. The reforms expand ASIC’s role as the conduct regulator while retaining APRA’s role as prudential and member outcomes regulator for superannuation by: giving ASIC...

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