Super funds press for roundtable regulatory cost | Australian Markets
The Government’s Economic Reform Roundtable has been confronted by the truth of what the regulatory settings are literally costing each superannuation funds and financial advisers.
While within the background of the roundtable Treasury remains to be grappling with the numerous cost over-run of the Compensation Scheme of Last Resort, the most important superannuation funds have pointed to a doubling of regulatory prices imposed on superannuation funds.
The Association of Superannuation Funds of Australia (ASFA) instructed the roundtable that previously seven years, compliance and dangers managements prices for funds regulated by the Australian Prudential Regulation Authority (APRA) have virtually doubled from $550 million in 2017-18 to $1.05 billion within the 2024-25 financial 12 months.
ASFA is one of the organisations particularly invited to the roundtable and mentioned will probably be arguing that focused reforms to streamline the regulatory setting and slicing duplication will scale back compliance prices for superannuation funds “and allow a better and more productive allocation of resources”.
ASFA chief govt, Mary Delahunty mentioned regulatory duplication and outdated guidelines are driving up prices and “putting a handbrake on what super can deliver in terms of productivity and investment returns to members”.
“Regulation is vital for trust, but when it overlaps or is outdated, it can become a drag on member returns and it impacts productivity,” Delahunty mentioned. “The changes we are proposing are small, and importantly don’t water down member protections, but they could make a big difference for fund members and the country.”
“It will mean more funds for investible opportunities in the productive capacity of Australia, such as housing or clean energy, and that in turn helps economic growth, jobs and returns.”
ASFA outlined its reform priorities as together with:
- Introducing a ‘tell us once’ reporting system throughout APRA, ASIC, ATO, ABS and RBA, eliminating the need to inform every regulator related issues in a totally different method
- Removing outdated non-digital disclosure necessities
- Improving coordination between regulators to cut coverage overlap
- Streamlining contributions and retirement entry guidelines
ASFA famous that Delahunty can be representing the superannuation sector on the roundtable alongside AustralianSuper chief govt, Paul Schroder.
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