Financial Sector (Collection of Data) (reporting standard) determination No. 92 of 2013 - SRS 702.0 - Investment Performance

Administered by Department of the Treasury

Legislation au F2013L01739 Not in force Legislative Instrument

Legislation content

Financial Sector (Collection of Data) (reporting standard) determinations Nos. 92, 98 and 99 of 2013

EXPLANATORY STATEMENT

Prepared by the Australian Prudential Regulation Authority (APRA)

Financial Sector (Collection of Data) Act 2001, sections 13 and 15

Under subsection 13(1) of the Financial Sector (Collection of Data) Act 2001 (the Act), APRA has the power to determine reporting standards, in writing, with which financial sector entities must comply.  Such standards relate to reporting financial or accounting data and other information regarding the business or activities of the entities.

On 20 September 2013, APRA made the following determinations (the instruments):

  • Financial Sector (Collection of Data) (reporting standard) determination No. 92 of 2013, which determines Reporting Standard SRS 702.0 Investment Performance (SRS 702.0);
  • Financial Sector (Collection of Data) (reporting standard) determination No. 98 of 2013, which determines Reporting Standard SRS 700.0 Product Dashboard (SRS 700.0); and
  • Financial Sector (Collection of Data) (reporting standard) determination No. 99 of 2013, which determines Reporting Standard SRS 703.0 Fees Disclosed (SRS 703.0).

SRS 702.0 commences on 30 September 2013 and applies to reporting periods ending on and after that date.  

SRS 700.0 and SRS 703.0 commence on 31 December 2013 and apply to reporting days falling on or after that date.

  1.    Background

APRA is empowered to make reporting standards under the Act, which require regulated institutions, including RSE licensees, to submit specified data through various reporting forms. Data from these forms are used internally to assist APRA’s supervisory functions and by other agencies such as the Australian Bureau of Statistics and the Australian Securities and Investments Commission. APRA also collates and publishes statistical information and analysis using data from these reporting forms.

In 2012, the Superannuation Industry (Supervision) Act 1993 (SIS Act) was amended to introduce MySuper (a diversified superannuation product for contributions where the member has not made a choice of fund or product) by the Superannuation Legislation Amendment (MySuper Core Provisions) Act 2012. At this time, the Act was amended to extend APRA’s existing powers to collect data under the Act and to impose additional publication obligations on APRA. These measures were introduced in response to recommendations contained in the June 2010 report of the Review into the Governance, Efficiency, Structure and Operation of Australia’s Superannuation System (Super System Review).

The reporting standards will enable APRA to meet its new legislative obligations (including to publish MySuper data under new section 348A[1] of the SIS Act and to strengthen its prudential oversight of the superannuation industry. The reforms also assist APRA in fulfilling its role as national statistical agency for the Australian financial sector and promote transparency and comparability within the superannuation industry.

The Corporations Regulations 2001 (Corporations Regulations) were amended in 2013 to include new requirements relating to product dashboards and product disclosure statements (PDSs) for MySuper products.[2] The provisions relating to the MySuper product dashboard make reference to reporting standards relating to MySuper products for the purposes of specifying some of the detail underlying the calculation methodologies for the dashboard.

The operation of s. 29QC of the SIS Act means that APRA’s definitions apply in the context of other RSE licensee disclosure obligations. APRA’s reporting requirements must, therefore, be consistent with the required content of PDSs for MySuper products as specified in the 2013 amendments to the Corporations Regulations.

2.      Purpose and operation of the instrument

The purpose of making the instruments is to introduce new reporting standards in relation to RSE licensees in order to implement the Government’s Stronger Super reforms, strengthen supervision of the superannuation industry, meet the requirements of users of data collected by APRA in its role as a national statistical collection agency and promote transparency and comparability within the superannuation industry.

The implementation of the Government’s Stronger Super reforms requires substantive changes to the reporting requirements for RSE licensees. APRA also intends to take the opportunity to make improvements to the reporting requirements of RSE licensees by implementing a number of changes to enhance APRA’s superannuation statistical publications.

The new reporting standards and associated reporting forms are issued under the Act. The collection of data under the new superannuation reporting requirements is staggered over the period from 30 September 2013 to 31 December 2013.

The requirements in SRS 702.0 include items requiring look-through reporting in reliance on subsections 13(4A) to (4C) of the Act.[3] Consequently, notification requirements apply under subsection (3B) where assets of an RSE licensee (or assets derived from such assets) are invested, and the party investing those assets must provide information about those investments and the fees and costs associated with those investments.

3.      Consultation

APRA has consulted extensively on the proposed reporting standards since the beginning of 2012, including:

  • preliminary consultation undertaken in early 2012 with a small number of external users including large administrators, custodians, accounting firms and RSE licensees;
  • release of a discussion paper, Reporting standards for superannuation (September 2012), outlining the main areas proposed to be addressed in the proposed suite of reporting standards (including those relating to the product dashboard, investment performance and the disclosure of fees). APRA received 29 submissions on this discussion paper;
  • release of a further discussion package in July 2013 outlining changes to SRS 700.0, SRS 702.0 and SRS 703.0 since previously released versions. APRA received 13 submissions on this discussion package;
  • industry seminars in major capital cities in September/October 2012 and January/February 2013 and attendance  at  a  range  of  industry  conferences  to  present  on  details  of  the  reporting standards; and
  • meetings with individual RSE licensees, industry representative bodies, other regulatory agencies  and  other  interested  stakeholders  to  discuss  specific  details  of  the  reforms, including APRA’s implementation expectations.

Submissions were received from a variety of organisations that will be affected by the reporting standards, including RSE licensees, industry bodies, professional bodies and service providers.

4.  Regulation Impact Statement

APRA prepared a Regulation Impact Statement which has been lodged as supporting material.

5. Statement of compatibility prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

A Statement of compatibility prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 is provided at Attachment A to this Explanatory Statement.


ATTACHMENT A

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Financial Sector (Collection of Data) (reporting standard) determinations Nos. 92, 98 and 99 of 2013

 

These Legislative Instruments are compatible with the human rights and freedoms recognised or declared in the international instrument listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 (HRPS Act).

Overview of the Legislative Instrument

The purpose of making these Legislative Instruments is to introduce new reporting standards in relation to RSE licensees in order to implement the Government’s Stronger Super reforms, strengthen supervision of the superannuation industry, meet the requirements of users of data collected by APRA in its role as a national statistical collection agency and promote transparency and comparability within the superannuation industry.

Human rights implications

APRA has assessed the Legislative Instruments against the international instruments listed in section 3 of the HRPS Act and determined that only Article 17 of the International Covenant on Civil and Political Rights (ICCPR) is conceivably of relevance to the Legislative Instruments.

Article 17 of the ICCPR prohibits the arbitrary or unlawful interference with a person’s privacy, family, home and correspondence, and attacks on reputation. Article 17 is exclusively concerned with prohibiting interference with the privacy and/or reputation of individual persons. It does not extend to the privacy and/or reputation of corporate entities.

The Legislative Instruments will facilitate the disclosure of specific information provided to APRA by RSE licensees in accordance with certain reporting standards. The information required by the reporting standards is either information that is otherwise publicly disclosed or is information about financial products. As the reporting standards do not require the submission of personal information, there are no human rights implications.

Consequently, the Legislative Instruments do not engage any of the applicable rights or freedoms recognised or declared in the international instruments listed in section 3 of the HRPS Act. Accordingly, in APRA’s assessment, the Legislative Instruments are compatible with human rights.

[1] Section 348A is inserted by Superannuation Legislation Amendment (Further MySuper and Transparency Measures) Act 2012.

[2] http://www.comlaw.gov.au/Details/F2013L01246

[3] Subsections 13(4A) to (4C) of the Act are inserted by Item 29 of Schedule 3 to the Superannuation Legislation Amendment (Further MySuper and Transparency Measures) Act 2012, effective 1 July 2013. 

Overview

The Financial Sector (Collection of Data) (reporting standard) determinations Nos. 92, 98 and 99 of 2013 were made by the Australian Prudential Regulation Authority (APRA) under the Financial Sector (Collection of Data) Act 2001. The determinations were introduced to address the need for new reporting standards in relation to regulated superannuation entities, thereby implementing the Government’s Stronger Super reforms. The reforms aim to strengthen the supervision of the superannuation industry, meet the data requirements of users of information collected by APRA, and promote transparency and comparability within the superannuation industry. APRA consulted extensively with various stakeholders, including industry bodies, professional groups, and service providers, before making these determinations. The new reporting standards, which cover areas such as investment performance, product dashboards, and fees disclosure, are designed to facilitate the disclosure of specific information by superannuation entities, aligning with the broader requirements of the Superannuation Industry (Supervision) Act 1993 and the Corporations Regulations 2001.

Scope and Application

The Financial Sector (Collection of Data) (reporting standard) determinations Nos. 92, 98 and 99 of 2013, made by the Australian Prudential Regulation Authority (APRA) under the Financial Sector (Collection of Data) Act 2001, pertain to the reporting of specific financial data by regulated financial sector entities, particularly those involved in the superannuation industry. These instruments establish reporting standards that mandate the collection of data related to investment performance, product dashboards, and fees disclosed by Responsible Superannuation Entity (RSE) licensees. These standards are designed to implement the Government’s Stronger Super reforms, enhance supervisory functions, and ensure transparency and comparability within the superannuation industry. The standards apply to reporting periods ending on or after 30 September 2013 for SRS 702.0 and on or after 31 December 2013 for SRS 700.0 and SRS 703.0. APRA’s authority to impose these standards extends to financial sector entities within the Commonwealth jurisdiction, with specific focus on RSE licensees. The collection of data under these standards is integral to APRA’s role as the national statistical collection agency for the Australian financial sector, supporting both internal supervisory functions and external data users such as the Australian Bureau of Statistics and the Australian Securities and Investments Commission.

Key Provisions

The Financial Sector (Collection of Data) (reporting standard) determinations Nos. 92, 98 and 99 of 2013 (the Determinations) establish new reporting standards under the Financial Sector (Collection of Data) Act 2001 (the Act). These Determinations require Responsible Superannuation Entities (RSEs) licensees to report on their investment performance, product dashboard, and fees disclosed in compliance with the respective reporting standards: SRS 702.0, SRS 700.0, and SRS 703.0. The commencement dates for these standards are staggered, with SRS 702.0 effective from 30 September 2013, and SRS 700.0 and SRS 703.0 effective from 31 December 2013. These standards are integral to implementing the Stronger Super reforms, enhancing the supervisory functions of the Australian Prudential Regulation Authority (APRA), and promoting transparency and comparability in the superannuation industry. RSE licensees are mandated to submit specific financial and operational data as outlined in the new reporting standards. This includes detailed information on investment performance, product dashboards, and fee disclosures, which must be submitted through prescribed reporting forms. The data collected will be used by APRA for supervisory purposes, internal analysis, and publication of statistical information to aid other agencies such as the Australian Bureau of Statistics and the Australian Securities and Investments Commission. Additionally, these standards require RSE licensees to provide notifications and information about their investments and associated fees under certain conditions, ensuring that APRA can effectively monitor and regulate the financial sector. APRA's Determinations impose obligations on RSE licensees to ensure compliance with the new reporting standards. RSE licensees must prepare and submit the required reports in the specified formats and within the designated timeframes. Failure to comply with these requirements can result in regulatory scrutiny, potential enforcement actions, and could undermine the credibility of the RSE licensee. The reporting standards are designed to provide comprehensive and accurate data, which is essential for APRA’s role as a national statistical agency and for maintaining the integrity and transparency of the superannuation industry. Breaches of the new reporting standards can lead to various consequences. While the Determinations themselves do not explicitly state penalties for non-compliance, the Act provides for potential enforcement actions under sections 19 and 20. Under section 19, APRA can issue a compliance notice requiring the RSE licensee to take specific actions to comply with the Act or a determination. Non-compliance with a compliance notice can lead to further enforcement actions. Section 20 allows APRA to apply to the Federal Court for an enforcement order if it believes an entity has failed to comply with the Act or a determination. Such orders can include directions for the entity to comply with specified provisions, fines, or other penalties as determined by the Court. The seriousness of the breach and the extent of non-compliance will influence the nature and severity of the penalties imposed.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.