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Publication of superannuation statistics and confidentiality of superannuation data - November 2013 discussion paper

Disclaimer and copyright

While APRA endeavours to ensure the quality of this publication, it does not accept any responsibility for the accuracy, completeness or currency of the material included in this publication and will not be liable for any loss or damage arising out of any use of, or reliance on, this publication.

© Australian Prudential Regulation Authority (APRA)

This work is licensed under the Creative Commons Attribution 3.0 Australia Licence (CCBY 3.0).

This licence allows you to copy, distribute and adapt this work, provided you attribute the work and do not suggest that APRA endorses you or your work. To view a full copy of the terms of this licence, visit www.creativecommons.org/licenses/by/3.0/au/

Preamble

The Australian Prudential Regulation Authority (APRA) is a national statistical agency for the Australian financial sector, as well as the prudential regulator. APRA has for many years collected data, including superannuation data, and made them publicly accessible, primarily through statistical publications. APRA’s statistics promote understanding of the superannuation industry and facilitate improved transparency and accountability of superannuation entities.

APRA recently completed its review of reporting requirements for registrable superannuation entities (RSEs) as part of a wider program of superannuation reforms that have been undertaken since 2011.

This paper outlines proposed changes to the content and format of the superannuation statistics to be publicly released by APRA following the implementation of these superannuation reforms and the new reporting requirements.

APRA is seeking feedback on the proposed changes, and the data collected under the new reporting framework that are to be determined non-confidential.

Written submissions should be forwarded by 31 January 2014, preferably by email to:

Manager, Superannuation Statistics

Australian Prudential Regulation Authority

GPO Box 9836

Sydney NSW 2001

Email: statistics@apra.gov.au

Important

All information in submissions will be made available to the public on the APRA website unless a respondent expressly requests that all or part of the submission is to remain in confidence. Automatically generated confidentiality statements in emails do not suffice for this purpose. Respondents who would like part of their submission to remain in confidence should provide this information marked as confidential in a separate attachment.

Submissions may be the subject of a request for access made under the Freedom of Information Act 1982 (FOIA). APRA will determine such requests, if any, in accordance with the provisions of the FOIA. Information in the submission about any APRA regulated entity that is not in the public domain and that is identified as confidential will be protected by section 56 of the Australian Prudential Regulation Authority Act 1998 (APRA Act) and will therefore be exempt from production under the FOIA.

Contents

Executive summary

Glossary

Chapter 1 – Introduction

Chapter 2 – Current approach to publication of superannuation statistics

Chapter 3 – Proposed approach to publication of superannuation statistics

Chapter 4 – Proposed determination of superannuation data to be non-confidential

Chapter 5 – Proposed quarterly superannuation statistics

Appendix A – Superannuation reporting framework

Appendix B – List of reporting standards subject to the proposed determination

Executive summary

APRA collects a broad range of financial and risk data from RSE licensees that are primarily an input to its supervision of these entities. APRA is also a national statistical agency for the Australian financial sector and has for many years made much of the superannuation data that it collects publicly accessible, primarily through statistical publications.

Since 2011, APRA has been working to implement a range of prudential requirements for the superannuation industry as part of the Stronger Super reforms. As part of these reforms, APRA released a new reporting framework in June 2013.

The final reporting requirements, which commenced progressively from 1 July 2013, replace the reporting requirements that have been in place since 2004. As a result, APRA is revising the format and content of the superannuation data and statistics to be determined non-confidential and published, to reflect the increased scope of superannuation data to be reported to APRA and to make the data more accessible.

There have been substantial changes to the structure and nature of the superannuation industry since 2004, as well as material changes to APRA’s superannuation data collection. Accordingly, it is an opportune time to review the purpose and scope of the superannuation statistics publicly released by APRA. It is also important that APRA’s publicly released statistics facilitate and encourage analysis of whether the superannuation industry is achieving retirement income policy objectives over the medium to long term, and contribute to enhanced transparency, accountability and understanding of the superannuation industry.

This paper focuses on APRA’s proposed changes to the format and content of the quarterly superannuation statistics it publishes. APRA is also proposing to make substantial enhancements to its publication of annual superannuation statistics, including introducing a new annual MySuper report. The annual industry data under the new reporting requirements are not due to APRA until late 2014. Accordingly, APRA will consult separately on proposals for the release of annual superannuation statistics in mid-2014.

Format of superannuation statistics

APRA proposes to release data and statistics in three, rather than the current two, formats. In particular, APRA is introducing a new online data dissemination tool that will allow more data to be released, more reliably, through a database rather than using Excel. The data dissemination tool will enable enhanced access to data in a manner that facilitates easy access, manipulation, visualisation and analysis of the data. The database will supplement the statistical (PDF format) publications and statistical reports (currently released in Excel).

APRA will continue to release data and statistics at a range of levels, including industry-level, RSE-level, and for defined benefit funds and sub-funds, MySuper products and select investment choice options.

Industry-level statistical publications will continue to be released in PDF format, and include commentary and selected features. The new data dissemination tool will allow APRA to expand the volume of data released in statistical reports at more granular levels than industry-level. APRA also proposes to make all non-confidential data accessible through the new superannuation database.

Superannuation data to be determined non-confidential

In light of the new reporting framework, APRA also needs to consider the data it determines to be non- confidential and therefore makes publicly accessible. APRA proposes to determine certain data submitted1 by RSE licensees to be non-confidential.

Section 348A of the Superannuation Industry (Supervision) Act 1993 (SIS Act) specifically provides for APRA to collect information on the fees, costs and returns of each MySuper product and requires APRA to publish MySuper product data. As APRA is required under legislation to publish certain data, these data are not considered to be protected under the APRA Act and are therefore already treated as non-confidential by APRA. Accordingly, APRA proposes to determine all MySuper product data to be non-confidential.

APRA also proposes to determine the data provided on the forms listed in Appendix B to be non- confidential. Consistent with the data determined non-confidential under the previous reporting framework, this includes data on RSE profiles, financial position and performance and selected investments.

APRA is not proposing to determine non-confidential data relating to the Vested Benefits Index (VBI) of a defined benefit fund or sub-fund (other than certain information on actuarial assumptions). APRA is concerned that the quarterly estimated VBI information for defined benefit funds and sub-funds that will be reported to APRA may be potentially misleading, particularly if it is published separately from the detailed supporting information that is provided in the actuarial report. Information in relation to the VBI of defined benefit funds and sub-funds, together with relevant supporting information, is required to be made publicly available in actuarial reports by RSE licensees from 1 July 2013.

APRA is also not proposing to determine data relating to the Operational Risk Financial Requirement (ORFR) to be non-confidential during the three-year transition period from 1 July 2013. APRA’s view is that publication of information in relation to the financial resources held in relation to operational risk by the superannuation industry, and at RSE licensee and RSE level, would be of public benefit and interest. However APRA acknowledges that the ORFR is a new requirement and that there is a transition period for the industry to build financial resources to meet the ORFR. APRA will consider at the end of the transition period, and following consultation with industry, whether to determine annual data relating to the ORFR to be non-confidential and the annual ORFR data it may be appropriate to publish.

Finally, APRA’s view is that it would not be appropriate to publish information in relation to commercial arrangements with service providers. Accordingly, APRA does not propose to determine financial or other commercial data relating to service providers to be non-confidential.

Quarterly superannuation statistics

As noted above, APRA proposes to publicly release superannuation statistics in three formats: statistical publications, statistical reports and a statistical database. The database will include all data determined to be non-confidential. APRA is therefore reviewing the level of detail at which superannuation statistics are included in the three different formats, including the segments for which statistics are released.

Publication of data for industry segments

APRA currently releases statistics in PDF and statistical report (Excel) format for industry segments based on fund type, regulatory type and benefit structure. Under the new reporting requirements, APRA collects more well-defined categorical information about RSE licensees and their RSEs on ownership type, profit status, board structure and membership base. Users will be able to undertake analysis based on these attributes using the data available in the database. APRA is therefore seeking feedback on whether there remains value in classifying the data into segments, based on some of these attributes, and developing and releasing statistics for these segments in either or both of the statistical (PDF) publications and statistical reports. For example, RSEs could be segmented into for-profit, non-profit and public sector funds for this purpose (as outlined in Chapter 5). If APRA is to continue to classify and release data for relevant industry segments, it also seeks feedback on the particular data that may be appropriate to release by segment in its statistical publications and reports.

Quarterly MySuper Statistics

APRA proposes to make all quarterly and annual MySuper product data publicly available in the database using the new data dissemination tool. APRA also proposes to release quarterly MySuper product data in a Quarterly MySuper Statistics report using the new tool. Publishing MySuper product data in this format will enable users to readily access and analyse the information that is of most relevance to them. The report is proposed to include data for each MySuper product on its profile, structure and investment target and strategy and, for a representative member only, investment performance and fees, costs and insurance premiums disclosed.

APRA does not propose to release product-level MySuper data in a quarterly PDF statistical publication. Certain aggregate MySuper product statistics will, however, be included in the Quarterly Superannuation Performance statistical publication, as outlined below.

Quarterly Superannuation Performance Statistics

APRA proposes to continue to publicly release quarterly industry-level statistics in a Quarterly Superannuation Performance Statistics publication. APRA also proposes to publicly release quarterly statistical reports in the new data dissemination tool. However, users being able to create their own statistical reports based on all data available in the database potentially reduces the need for APRA to publish some statistics, such as statistics for industry segments, in its PDF publications and statistical reports. It also provides an opportunity to consider the data that it is most appropriate to publish in the different formats.

One option is to maintain consistency with the current APRA quarterly statistical publications and reports. A draft publication developed on that basis is available on the APRA website.2 Alternatively, consistent with facilitating and encouraging analysis by stakeholders on achievement by the superannuation industry of retirement income policy objectives over the medium to long term, it may be more appropriate to report information in the Quarterly Superannuation Performance Statistics that reflects longer time periods, such as three or five years. Quarterly and annual performance information would continue to be available in statistical reports and the database.

Similarly, the draft PDF publication and statistical reports currently include all data that APRA collects that can be published as useful statistics, subject to confidentiality constraints. This approach allows users to drill down from the key statistics to understand drivers of movements and trends, e.g. by industry segment, without needing to refer to other documents or online sources. This detailed drill down information could alternatively be made available only in statistical reports and the database. This would enable the PDF publication to be more concise and targeted, focusing on the data that are viewed as most relevant by users.

APRA therefore seeks feedback from users on the particular data that it may be most appropriate and useful to publish in the quarterly statistical (PDF) publication and statistical reports. APRA also seeks views on the time periods and industry segments for which statistics should be included in the Quarterly Superannuation Performance Statistics publication and quarterly statistical reports.

Proposed timetable and next steps

Written submissions on this discussion paper should be submitted by 31 January 2014. Subject to feedback received in response to the discussion paper, the content and format of the quarterly statistics to be released will be finalised in early to mid-2014.

APRA is in the process of selecting the proposed new data dissemination tool, which will take some time to fully implement. The revised quarterly statistical publications and reports, and the ability to access the data in the new database, will therefore not be available until later in 2014. APRA proposes to release selected statistics on an interim basis for (at least) the September and December 2013 quarter reference periods. These statistics will be similar to those included in the current quarterly publication.

APRA proposes to separately consult on draft annual superannuation statistical publications and reports in mid-2014.

Glossary

2009 discussion paper

Discussion paper: Enhanced APRA superannuation statistics (released 25 May 2009)

2012 discussion paper

Discussion paper: Reporting Standards for Superannuation (released 19 September 2012)

ABS

Australian Bureau of Statistics

ADF

approved deposit fund

APRA

Australian Prudential Regulation Authority

APRA Act

Australian Prudential Regulation Authority Act 1998

ASIC

Australian Securities and Investments Commission

ATO

Australian Taxation Office

Corporations Act

Corporations Act 2001

Corporations Regulations

Corporations Regulations 2001

EPSSS

exempt public sector superannuation scheme

ERF

eligible rollover fund

FOIA

Freedom of Information Act 1982

FSCOD Act

Financial Sector (Collection of Data) Act 2001

ORFR

operational risk financial requirement

PDS

product disclosure statement

PPG

prudential practice guide

Privacy Act

Privacy Act 1998

PST

pooled superannuation trust as defined in s. 10(1) of the SIS Act

the Review

Review into the Efficiency, Governance, Structure and Operation of Australia’s Superannuation System (final report delivered 30 June 2010)

RSE

registrable superannuation entity as defined in s. 10(1) of the SIS Act

RSE licensee

a constitutional corporation, body corporate, or group of individual trustees, that holds an RSE licence granted under s. 29D of the SIS Act


RSE licensee’s business operations

all activities as an RSE licensee (including the activities of each RSE of which it is the licensee), and all other activities of the RSE licensee to the extent that they are relevant to, or may impact on, its activities as an RSE licensee.

SAF

a small APRA fund, being a superannuation entity that is a regulated superannuation fund within the meaning of the SIS Act and has fewer than five members.

SIS Act

Superannuation Industry (Supervision) Act 1993

SIS Regulations

Superannuation Industry (Supervision) Regulations 1994

SMSF

self-managed superannuation fund

SMADF

A single member ADF, being a superannuation entity that is an ADF and which has only one member.

SPS 114

Prudential Standard SPS 114 Operational Risk Financial Requirement

SPS 160

Prudential Standard SPS 160 Defined Benefit Matters

SPS 220

Prudential Standard SPS 220 Risk Management

SPS 231

Prudential Standard SPS 231 Outsourcing

SPS 310

Prudential Standard SPS 310 Audit and Related Matters

SPS 510

Prudential Standard SPS 510 Governance

SPS 521

Prudential Standard SPS 521 Conflicts of Interest

SPS 530

Prudential Standard SPS 530 Investment Governance

Stronger Super

Government’s response to the Review (December 2010) and additional information pack (September 2011)

VBI

Vested benefits index

 

Chapter 1 – Introduction

1.1 Background

In May 2009, APRA released a discussion paper, Enhanced APRA Superannuation Statistics Collections (2009 discussion paper), which proposed substantial enhancements to APRA’s superannuation data collection. These enhancements were put on hold after the commencement of the Review into the Efficiency, Governance, Structure and Operation of Australia’s Superannuation System (the Review) in May 2009, which was to address reporting in respect of RSEs, among other issues. The Review’s final report was provided to the Government on 30 June 2010 and the Government’s response was released in December 2010 (Stronger Super).

Since 2011, APRA has been working to implement a range of prudential requirements for the superannuation industry as part of the Stronger Super reforms.

In September 2012, APRA released a discussion paper, Reporting Standards for Superannuation (2012 discussion paper), together with a proposed new reporting framework consisting of draft reporting forms and instructions. This new reporting framework was to replace the reporting requirements that had been in place since 2004. In June 2013, APRA released the final reporting requirements, which commenced progressively from 1 July 2013 as outlined below.

In consulting on the new reporting framework, APRA indicated that it intended to review its approach to the publication of superannuation statistics to reflect the increased scope of data to be regularly reported to APRA. This paper outlines APRA’s proposed changes to the format and content of the quarterly superannuation statistics it releases, and APRA’s proposals in relation to the data to be determined non-confidential.

There have been substantial changes to the structure and nature of the superannuation industry since 2004, and material changes to APRA’s superannuation data collection. Accordingly, it is an opportune time to consider the purpose and scope of superannuation statistics published by APRA. This is addressed in the subsequent chapters of this paper. APRA’s view is that the statistics it releases publicly should support and encourage analysis by stakeholders of the achievement by the superannuation industry of retirement income policy objectives over the medium to long term, and contribute to enhanced transparency, accountability and understanding of the industry.

1.2 Recent superannuation reforms

The Stronger Super reforms supported the delivery of better outcomes for members and their employers through a range of measures. These measures, which included enhanced requirements and responsibilities for RSE licensees and provided improved tools for APRA and other regulators, had implications for APRA’s reporting requirements.

A key initiative of Stronger Super was the introduction of MySuper. From 1 January 2014, all default contributions (i.e. contributions, or any part of

a contribution, to a fund in relation to which no direction has been given) must only be paid into a fund that contains an authorised MySuper product. Under the SIS Act, MySuper products must meet certain criteria that are, in part, intended to enable the public to compare MySuper products more easily on a few key attributes.

The Financial Sector (Collection of Data) Act 2001 (FSCOD Act) was amended in 2013 to explicitly include an objective to enable APRA to collect information for the purposes of “enabling APRA to publish information given by financial sector entities...”.3

At the same time, the SIS Act was also amended to include a specific obligation for APRA to publish information about MySuper products. APRA is now required, under section 348A of the SIS Act, to publish quarterly information on its website in relation to MySuper products (on a product by product basis), including:

  • the fees charged;

  • the costs incurred; and

  • the net returns to beneficiaries of regulated superannuation funds who hold MySuper products.

The publication of this MySuper product information will provide a central source of information on MySuper products.4

These legislative amendments support the collection and release of data by APRA to facilitate the comparison of MySuper products and to support the broader transparency objectives of the Stronger Super reforms.

1.3 Scope of superannuation data collection

APRA has adopted a phased introduction of the new reporting framework. Reporting forms that collect information relating to MySuper products, prudential requirements and RSE-level financial statements apply to reporting periods ending on and after 1 July 2013. Reporting forms related to the more detailed investment reporting for all RSEs, and for defined benefit sub-funds and select investment options, will commence from 1 July 2014.

Some reporting forms are required to be submitted quarterly and some are required to be submitted on an annual basis. A subset of the annual reporting requirements must be audited. For most RSEs, the

first quarterly forms applied from the quarter ending September 2013 and the first annual forms to the year ending 30 June 2014.

Appendix A shows the level, frequency and commencement for each reporting form. A number of APRA’s reporting forms require look-through reporting on asset classes within vehicles used to invest the assets of an RSE.5 Information on the superannuation reporting framework, and the data collected under each reporting standard, is also provided on APRA’s website.6

APRA collects data from all RSE licensees for each RSE within their business operations, as well as for a small number of exempt public sector superannuation schemes. APRA does not collect data from self- managed superannuation funds (SMSFs), which are administered by the Australian Taxation Office.

1.4 Proposed timetable for publication of superannuation statistics and next steps

This paper focuses on the proposed approach to the release of quarterly superannuation statistics. APRA is also proposing to make substantial enhancements to its publication of annual superannuation statistics, including introducing a new annual MySuper report. The annual industry data under the new reporting requirements are not due to APRA until late 2014.

Accordingly, APRA will consult separately on proposals for the release of annual superannuation statistics in mid-2014. However some aspects relevant to the annual statistics (such as the proposed formats in which data will be released and the data to be determined non-confidential) are addressed in this paper.

This discussion paper outlines APRA’s proposals to:

  • use a new data dissemination tool to publicly release superannuation statistics to improve access to and analysis of the available data through defined statistical reports and access to a statistical database;

  • continue to publish quarterly industry-level statistics in an enhanced Quarterly Superannuation Performance Statistics publication;

  • publish a new Quarterly MySuper Statistics report commencing from the September 2013 reference period as required under section 348A of the SIS Act; and

  • determine certain superannuation data to be non- confidential, and therefore publicly accessible.

Subject to feedback received in response to the discussion paper, the content and format of the quarterly statistics to be published will be finalised in early to mid-2014 and a response paper issued. The key milestones in APRA’s implementation of its proposals are set out in Table 1 below.

APRA proposes to release selected statistics on an interim basis for (at least) the September and December 2013 quarter reference periods. These statistics will be similar to those included in the current quarterly publication.

1.5 Structure of this paper

Chapter 2 outlines the format and structure of the current superannuation statistics that are published. Chapter 3 describes the proposed changes to the format in which APRA will release superannuation statistics using a new data dissemination tool. Chapter 4 outlines APRA’s proposal to determine certain data submitted by RSE licensees to be non-confidential and hence publicly available. Chapter 5 describes the proposed content of the quarterly superannuation statistics that APRA will release in the different formats and the rationale for the proposed changes.

Table 1 – Key milestones in APRA’s implementation of proposals

14 November 2013

Release of discussion paper, draft quarterly publications and proposal to determine certain data non-confidential for comment by 31 January 2014

Late November 2013

Release of selected (industry-level) superannuation statistics for the September 2013 reference period (interim Quarterly Superannuation Performance Statistics)

Mid 2014

Release of response to submissions to discussion paper

Mid 2014

Release of draft annual and RSE-level statistics for comment

Late 2014

Release of Quarterly MySuper Statistics report for September 2013 reference period

Late 2014

Release of Quarterly Superannuation Performance Statistics publication for September 2013 reference period

 

Chapter 2 – Current approach to publication of superannuation statistics

2.1 Background

APRA collects data primarily for prudential purposes. However, it also has a substantial ancillary role to provide statistics to RSE licensees, policy-makers, other regulators, employers, financial planners, market analysts and researchers.

APRA observes international statistical standards in developing, producing and managing its statistics (except in the few instances where doing so would conflict with APRA’s primary role as a prudential regulator). By acting consistently with these standards, APRA helps to protect commercially sensitive information provided by RSE licensees, whilst providing statistics that are useful, trustworthy and trusted and meet the needs of Government and the public.

International statistical standards set accepted prerequisites for quality statistics. The prerequisites include: relevance of statistics to users’ information needs; impartiality and objectivity of statistics; accuracy and reliability of statistics and their interpretation; periodic and timely release of statistics; and ensuring the statistics are easily accessed and utilised by all users at the same time. These standards inform APRA’s approach to releasing statistics.

2.2 Current format of published statistics

APRA currently releases superannuation statistics in two formats: statistical publications in Adobe PDF and statistical reports in Excel.

APRA releases superannuation statistics in three statistical publications: the Quarterly Superannuation Performance Statistics; the Annual Superannuation Bulletin; and the annual Superannuation Fund-level Publications (Rates of Return).7

Statistical publications

APRA’s statistical publications are currently released in an Adobe PDF format and are designed to be printed on A4 paper. The content is drawn from APRA’s

data collections and reflects international statistical standards, in particular the standard relating to relevance to users. The current statistical publications contain industry-level or RSE-level statistics, as outlined below.

The current statistical publications are self–contained to promote accessibility of the statistics i.e. they contain high-level summaries of statistics, followed by detailed statistics that allow users to drill down from the key statistics to understand drivers of movements and trends without having to refer to other documents or online sources. For example, the Quarterly Superannuation Performance Statistics contains key statistics including assets, liabilities and earnings. The publication allows users to drill down from these items to statistics on contribution flows, income and expenses, and investments, among other items. Statistics in the Quarterly Superannuation Performance Statistics are broken into four superannuation industry segments to help users understand the drivers of the key statistics. The current statistical publications are intended to enable the offline use of as many statistics as possible for the widest possible audience.

Industry-level statistical publications contain impartial commentary in the form of highlights and selected features. These publications tend to be accessed by users who prefer the most important aspects of the industry highlighted, or the statistics presented in a certain way. By packaging statistics in this format, APRA also seeks to minimise the risk that users may unintentionally misuse, miscalculate or misinterpret the statistics.

Statistical reports

APRA currently releases superannuation statistics in four statistical reports: the Quarterly Superannuation Performance Statistics; the Annual Superannuation Bulletin; and the annual Superannuation Fund-level Publications (Rates of Return and Profiles and Financial Performance).

Statistical reports are tables in a predefined layout, created and released in Excel. Statistical reports are not primarily designed for printing, which allows the contents of these reports to not be bound by page size. Currently, the statistical reports are based on the industry-level and RSE-level PDF statistical publications and include more granular data items, additional periods and additional industry segments. For example, the Quarterly Superannuation Performance Statistics PDF publication contains a time-series of the five most recent quarters, whereas the Excel report version contains a time-series that provides data for each quarter commencing from the December 2004 quarter.

Statistical reports in Excel do not contain selected features and are typically favoured by analysts who want to be able to summarise and drill down into the statistics, and who wish to perform their own calculations.

2.3 Current level of published statistics

As noted above, APRA currently releases superannuation statistics at an industry-level and at an RSE-level.

Industry-level statistics

The current Quarterly Superannuation Performance Statistics and Annual Superannuation Bulletin include data at industry-level. The statistics cover financial performance, financial position and key ratios for the superannuation industry such as rates of return by industry segment. The Annual Superannuation Bulletin also includes data on the number of superannuation entities and members and information on extent of investment choice offered by RSEs. APRA generally includes two selected features in each issue of the

Annual Superannuation Bulletin. The statistics in the quarterly publication are sourced from the unaudited quarterly forms submitted to APRA for RSEs with at least $50m in assets. The statistics in the annual publication are sourced from audited annual forms submitted to APRA for all RSEs as well as SMSFs.

By releasing industry-level statistics, APRA promotes understanding of the superannuation industry and assists research and public discussion on policy issues and well-informed decision-making by RSE licensees, policy-makers, other regulators, employers, financial planners, market analysts and researchers.

RSE-level statistics

The current Superannuation Fund-level Rates of Return publication and report include data at the RSE-level and contain whole-of-fund rates of return for each of the largest 200 RSEs, and for eligible rollover funds. The Superannuation Fund-level Profiles and Financial Performance report contains key RSE-specific information and rates of return, as well as information about the drivers of the rate of return, such as asset allocation, proportion of assets in the default option and the age profile of members to help users interpret the rate of return. RSE-level data are sourced from audited annual forms submitted to APRA.

The RSE-level data released in the Superannuation Fund- level Publications have been determined to be non- confidential under subsection 56(5C) of the Australian Prudential Regulation Authority Act 1998 (APRA Act).

APRA also publishes the non-confidential data at an industry-level in the Annual Superannuation Bulletin.

By releasing RSE-level data, APRA promotes transparency and accountability of RSE licensees, as well as transparency and understanding of the superannuation industry.

Chapter 3 – Proposed approach to publication of superannuation statistics

3.1 Background

As noted in Chapter 1, APRA commenced a review of its superannuation data collection and publications in 2009. As part of the recent Stronger Super Reforms, APRA completed its review of the superannuation data collection. Legislation was also enacted that strengthened APRA’s ancillary purpose to collect and publish financial sector statistics.

Following on from these changes, APRA proposes to change the format in which statistics are released, as outlined below. APRA is also proposing changes to the content of the statistics that are released, as set out in Chapter 5.

APRA expects that users will be able to better access, utilise and interpret the statistics with the new, improved format and structure of the suite of publicly available superannuation statistics. The proposed changes to the format and content of the statistics are intended to promote enhanced understanding of the superannuation industry and transparency and accountability of the superannuation entities that APRA regulates.

3.2 Proposed format of superannuation statistics

APRA is introducing a new online data dissemination tool that will allow more data to be released, more reliably, than is currently possible using Excel. This is particularly required to facilitate the release of quarterly and annual data about each MySuper product, and additional data at RSE-level and for select choice investment options.

The data dissemination tool will provide enhanced access to data in a manner that facilitates easy access, manipulation and analysis of the data. It will provide some functionality to display the data, which will also help users explore and understand the data, and aid in communicating that understanding to others. APRA is currently undertaking the selection and implementation of the data dissemination tool; many other official statistics agencies around the world disseminate data using similar systems.

The superannuation statistics will be released in up to three formats: statistical publications, statistical reports and a new statistical database. Currently only statistical publications and reports are released, as outlined in Chapter 2.

Statistical publications

APRA proposes that industry-level statistical publications continue to be released in PDF format, and include commentary and selected features.

The data proposed to be included in the statistical publications are outlined in Chapter 5, and will include the key statistics of relevance and interest to industry stakeholders.

Statistical reports

APRA intends to release statistical reports in the new data dissemination tool rather than in Excel. The tool will enable export to Excel and provide some Excel- like functionality so that users with and without Excel will be able to perform similar analysis of the data.

The new tool will allow APRA to expand the volume of data released in statistical reports, as outlined in Chapter 5.

Statistical database

With the introduction of the new tool, APRA proposes to introduce a superannuation statistical database.

The database will allow users to browse all publicly accessible (i.e. non-confidential) data and create their own custom reports. The database will also provide the facility to easily export data into various tools to allow users to conduct more in-depth analysis with their own statistical tools or applications.

3.3 Proposed level of publicly released statistics

APRA intends to continue to release statistics at an industry-level and data at a unit-level (namely for RSEs, MySuper products, select investment choice options and defined benefit sub-funds).

The amount of statistics and data made publicly available will be increased to reflect the broader scope of the revised data collection, as outlined in the following chapters. The new tool will also allow APRA to release more detailed unit-level data than it does currently. Given this new capability, APRA proposes to make publicly accessible via the new database all non-confidential data for RSEs, MySuper products, select investment choice options and defined benefit sub-funds. The data proposed to be determined non- confidential are outlined in Chapter 4.

Further details on the proposed quarterly superannuation data to be made publicly available in the different release formats are set out in Chapter 5. As noted in Chapter 1, APRA will consult separately in 2014 on the annual superannuation data to be publicly released.

Chapter 4 – Proposed determination of superannuation data to be non-confidential

This chapter outlines the data submitted by RSE licensees that APRA proposes to determine non-confidential.8

To assist APRA in making its decision about the data to be determined non-confidential, submissions from RSE licensees and other interested parties that seek to have data remain confidential should include:

  • specific details of the data items that should remain confidential;

  • specific information on how the disclosure of that information would lead to detriment to member interests, and the extent to which that could occur; and/or

  • specific information on how the disclosure of certain information might lead to detriment to RSE licensees or other parties’ commercial interests.

APRA also seeks feedback on whether any data that it presently does not propose to determine to be non- confidential should be determined non-confidential. Such feedback should indicate the reasons why the benefit to the public from the disclosure of the data outweighs any detriment to member interests or commercial interests that the disclosure may cause.

4.1 Determining data to be non- confidential

The majority of superannuation data submitted to APRA by RSE licensees is prescribed in reporting standards made under the FSCOD Act.9 The data provided by RSE licensees are protected under section 56 of the APRA Act.

The APRA Act allows the release of protected data under certain circumstances. APRA may release protected data, in statistical publications and other formats if, for example:

  • the information is in the form of a summary, or collection of information, that is prepared so that information relating to any particular institution cannot be attributed to it; or
  • the institution to whose affairs the information relates has agreed in writing to the disclosure or production of the information; or
  • the information has been determined non- confidential under section 57 of the APRA Act.

Section 57 of the APRA Act provides that APRA may, by legislative instrument, determine that all or a specified part of a relevant reporting document, or reporting document of a specified kind, does or does not contain confidential information. If APRA considers that the benefit to the public from the disclosure of the data outweighs any detriment to commercial interests that the disclosure may cause, then APRA may determine the data to be non- confidential.

APRA must not make such a determination unless it has:

  • given interested parties (bodies or associations representing the relevant kind of financial sector entity) a reasonable opportunity to make representations as to whether information of the kind that is proposed to be released is confidential; and

  • taken any such representations into account.

Where determined to be non-confidential, APRA can release the data under subsection 56(5C) of the APRA Act.

4.2 Confidentiality of data collected under the previous reporting framework

Under the previous reporting framework, APRA determined to be non-confidential, after consultation with RSE licensees, over 70 per cent of the annual superannuation data and a small proportion of the quarterly data collected under the FSCOD Act.10

The data determined to be non-confidential largely related to financial position and performance, selected investments, transactions with associated entities and RSEs’ profiles.11 The data not determined to be non- confidential largely related to exposure concentrations.

4.3 Previous consultation on confidentiality

In the September 2012 discussion paper, APRA proposed that data in each of the reporting forms that accompanied the discussion paper would be determined to be non-confidential to allow APRA to publish complete sets of statistics. Submissions on this paper largely accepted that most of the new data collection should be non-confidential. Some respondents suggested that data of the following nature should be treated as confidential: vested benefit index (VBI) for defined benefit funds; operational risk financial requirement (ORFR); and information about service providers.

As a result of submissions received on the broader data collection, APRA made substantial revisions to the final reporting framework when the final requirements were determined in June 2013. In light of these changes, this discussion paper provides RSE licensees and other interested parties with a further opportunity to make representations regarding the data to be collected on the final reporting forms that should, or should not, be determined non-confidential.

4.4 Proposed confidentiality under the revised reporting framework

As outlined in the following sections, APRA does not propose to determine all superannuation data to be non-confidential. APRA proposes to determine the data provided on the forms listed in Appendix B to be non-confidential.

The proposed determinations would make data that APRA determines to be non-confidential publicly accessible. As outlined in Chapter 3, APRA proposes that all non-confidential data for RSEs, MySuper products, select investment choice options and defined benefit sub-funds data will be made available in the new statistical database.

The proposed determinations will not affect APRA’s obligations under the Privacy Act 1998 (Privacy Act). The Privacy Act requires that where APRA has possession or control of a record that contains personal information, it shall not disclose that information to a person, body or agency (other than the individual concerned) except under specific circumstances. In the case of superannuation data, this applies to RSE information where individual members’ details could be discovered. APRA does not intend to disseminate RSE data where individual members’ details can be determined.

The proposed determinations only cover data collected under reporting standards made under the FSCOD Act. The determinations would apply to future data submitted to APRA under the new reporting standards that are identified as containing non- confidential data. It would also apply to data submitted under the previous reporting framework that were not previously determined non-confidential (i.e. under the superseded reporting standards listed in Appendix B).

4.4.1 MySuper product data

Section 348A of the SIS Act specifically provides for APRA to collect information on the fees, costs and returns of each MySuper product and requires APRA to publish MySuper product data. As APRA is required under legislation to publish certain data, these data are not considered to be protected under the APRA Act and are therefore already treated as non-confidential by APRA.

Proposed approach

APRA proposes to determine that all MySuper product data are non-confidential.

4.4.2 Vested benefits index (defined benefit funds)

In 2005, APRA determined, after consultation with RSE licensees, certain annual vested benefit index (VBI) data reported by defined benefit funds at the RSE level to be non-confidential. The VBI data covered in the determinations are shown in Table 2, with the relevant items mapped to data in the new reporting framework.

Reporting Standard SRS 160.0 Defined Benefit Matters requires RSE licensees to report defined benefit data to APRA annually. However, the scope of data items to be reported has expanded considerably. In addition, Reporting Standard SRS 160.1 Defined Benefit Member Flows will, from 1 July 2014, require RSE licensees to report the quarterly estimated VBI for each defined benefit fund and sub-fund.

Further, from 1 July 2014, the Superannuation Industry (Supervision) Regulations 1994 (SIS Regulations) will require RSE licensees to make the most recent actuarial report in relation to a defined benefit fund publicly available.

Proposed approach

Table 2 – Non-confidential vested benefit data

VBI data

Data in new framework

accrued benefits, defined benefits interests

SRF160.0, item 1.1

vested benefits, defined benefits interests

SRF160.0, item 1.2

date of defined benefit measures

SRF160.0, item 1.5

actuarial projection assumptions, long term investment return

SRF160.0, item 3.1

actuarial projection assumptions, long term wage growth

SRF160.0, item 3.2

actuarial projection assumptions, long term consumer price index

SRF160.0, item 3.3

membership type, defined benefit interests only

SRF160.0, item 7.1

membership type, defined contribution interests only

SRF160.0, item 7.2

membership type, both defined benefit and defined contribution interests

SRF160.0, item 7.3

estimate of vested benefits, defined benefit interests

SRF160.1, item 1.1

 

APRA is concerned that the quarterly estimated VBI information for defined benefit funds and sub-funds that will be reported to APRA may be potentially misleading, particularly if it is published separately from the detailed supporting information that is provided in the actuarial report. As noted above, the actuarial report containing information in relation to the VBI of defined benefit funds and sub-funds, together with relevant supporting information, will be required to be made publicly available by RSE licensees from 1 July 2014. Accordingly, APRA does not propose to determine quarterly data relating to the VBI of a defined benefit fund or sub-fund to be non-confidential.

APRA does not, however, consider that disclosing information on the actuarial assumptions used to determine the VBI and value of accrued benefits for defined benefit funds and sub-funds would be misleading or cause detriment to members or to an RSE licensee’s commercial interests. APRA is also of the view that such information would be of public benefit. APRA therefore proposes to determine the reported data relating to actuarial assumptions to be non-confidential.

4.4.3 Operational risk financial requirement

Prudential Standard SPS 114 Operational Risk Financial Requirement (SPS 114) established requirements for an RSE licensee to maintain adequate financial resources to address losses arising from operational risks that may affect RSEs within its business operations. SPS 114 requires RSE licensees to build the financial resources to meet the ORFR by 1 July 2016, and requires RSE licensees that rely on this transition provision to develop a plan to implement their ORFR strategy and build the financial resources to meet the ORFR.

Reporting Form SRF 114.0 Operational Risk Financial Requirement (SRF 114.0) collects information annually relating to the ORFR of an RSE licensee, specifically, how the RSE licensee chooses to meet the ORFR, transition and replenishment plans and payments from the ORFR. Reporting Form SRF 114.1 Operational Risk Financial Requirement (SRF 114.1) collects information annually relating to the ORFR of an RSE licensee, including reserves held to meet the ORFR and investments of any ORFR reserve. Reporting Form SRF 320.0 Statement of Financial Position (SRF 320.0) collects, on a quarterly basis, a subset of ORFR information collected on SRF 114.0 and SRF 114.1.

Some RSE licensees have indicated to APRA that information to be collected on SRF 114.0 (an RSE licensee-level form), SRF 114.1 (an RSE-level form) and data relating to the ORFR on SRF 320.0 (an RSE-level form) should not be determined non-confidential as it has the potential to reveal information relating to the operational risk profile of an RSE.

Proposed approach

APRA’s view is that publication of information in relation to the financial resources held in relation to operational risk by the superannuation industry, and at RSE licensee and RSE level, would be of public benefit and interest. However, APRA acknowledges that the ORFR is a new requirement and that there is a transition period for the industry to build financial resources to meet the ORFR.

Accordingly, APRA does not propose that data relating to the ORFR be determined non-confidential during the three-year transition period from 1 July 2013. APRA will consider at the end of the transition period, following consultation with industry, whether to determine annual data relating to the ORFR to be non-confidential and to publish this information.

APRA is not proposing to determine quarterly ORFR data to be non-confidential or to publish quarterly ORFR data. This is primarily because this data does not provide a complete picture of the financial resources available to an RSE to address losses arising from operational risks where resources to meet the ORFR are held at RSE licensee level.

4.4.4 Information about service providers

The SIS Regulations will require RSE licensees to disclose certain information about arrangements with service providers from 1 July 2014. The disclosure requirements are, however, limited to the disclosure of the names of service providers that provide a material service.

Some RSE licensees have indicated to APRA that information about commercial arrangements with service providers should not be determined non- confidential as to do so would be detrimental to the RSE’s commercial interests.

Proposed approach

APRA agrees that it would not be appropriate to publish information in relation to commercial

arrangements with service providers. Accordingly, APRA proposes to determine the names of service providers to be non-confidential, but does not propose to determine financial data that discloses the commercial relationship with service providers to be non-confidential. Data items that APRA proposes not to determine non-confidential (other than the names of service providers) include data reported on:

  • Reporting Form SRF 250.0 Acquired Insurance

  • Reporting Form SRF 331.0 Services

  • Reporting Form SRF 535.0 Securities Lending

4.4.5 Data to be subject to future consultation

As part of the broader superannuation transparency reforms, the Government is currently considering the portfolio holdings disclosure requirements.

Information that potentially overlaps with these disclosure reforms will be collected on Reporting Form SRF 532.0 Investment Exposure Concentrations (SRF 532.0) from 1 July 2014. APRA is also finalising the data collection requirements for SuperStream benchmarking on Reporting Form SRF 711.0 SuperStream Benchmarking Measures (SRF 711.0)

APRA intends to consider the confidentiality of SRF 532.0 and SRF 711.0, after consultation with RSE licensees, in mid 2014.

4.5 Benefits of the proposed determinations

In the immediate future, the proposed non- confidentiality determinations will allow APRA to continue to release data that are broadly consistent with the data that APRA currently releases in respect of RSEs in its statistical publications and reports.

Where APRA has not determined particular data to be non-confidential, it may still include the data in its aggregated statistics. APRA applies a set of confidentiality protection measures to its statistical

publications to ensure that confidential information relating to an individual RSE cannot be identified.

APRA may mask statistics that are potentially unable to be released. Where a statistic is masked, other statistics may also be masked so that the value of the primary masked item cannot otherwise be derived from totals.

The application of the confidentiality protection measures to the statistics may result in the release of incomplete and less informative statistics. In these cases, APRA may seek the consent of the affected RSE licensee to release the statistics.

The determination of more data to be non- confidential will reduce the need to apply confidentiality protection measures to industry-level statistics, which will allow APRA to release more detailed industry-level statistics without needing to request and obtain consent from affected RSE licensees every reporting period.

In addition, the proposed determinations will allow APRA to disseminate more detailed RSE-level, sub-fund and MySuper product-level data, which will support improved transparency in the superannuation industry.

Feedback from APRA’s 2011 stakeholders’ survey showed that users have a desire for APRA to publish more of the data it collects and to publish more of these statistics in a more appropriate format for analysis.

Chapter 5 – Proposed quarterly superannuation statistics

As noted in Chapter 1, APRA’s view is that its published statistics should support and encourage analysis of whether the superannuation industry is achieving retirement income policy objectives over the medium to long term, and contribute to enhanced transparency, accountability and understanding of the industry. Further, there have been substantial changes to the structure and nature of the superannuation industry since 2004, and material changes to APRA’s superannuation data collection. Accordingly, it is an opportune time to consider the purpose and scope of superannuation statistics publicly released by APRA.

As outlined in Chapter 3, APRA proposes to release superannuation statistics in three formats: statistical publications, statistical reports and a statistical database.

The database will include all data determined to be non-confidential. Given the changes noted above, it is appropriate to review the level of detail at which superannuation statistics are included in the three different formats. This includes considering the segments for which statistics are released as well as the specific statistics that are included.

This chapter describes the quarterly superannuation statistics proposed to be released in each of the three formats.

The proposals are intended to improve the relevance of, and access to, the statistics for users. They also seek to address feedback from users provided in responses to the 2011 and 2013 stakeholder surveys, and through other formal and informal consultations. For example, a number of stakeholder survey respondents requested the addition of more detailed data to APRA’s statistical publications; there were also requests for the release of more ‘raw’ data, trend analysis and the provision of time series.

5.1 Segmentation of superannuation statistics

APRA currently publishes information for superannuation industry segments based on segment types that were determined in 2004 and reflected the nature of the industry at that time. Since that time there has been significant change in the superannuation industry. Users of APRA’s statistics have previously indicated that APRA’s definitions of RSE fund types have not kept pace with changes in the industry and that APRA should review its classifications of individual RSEs, especially corporate funds.

As part of the recent review of reporting requirements, APRA proposed changes to the segment types for reporting purposes and these were reflected in the final reporting forms. The current and revised segment types are outlined below.

5.1.1 Relevance of segmentation statistics

In general, segmentation is intended to divide a population into groups (or ‘segments’) so that each group is as homogenous as possible, and as distinct as possible from other groups. The institutions in each segment should be similar to others in their own group, and different from institutions in the other segments.

A capacity to divide an industry into distinct groups of institutions, each of which may behave differently in a statistical sense over time, can be beneficial for users seeking to better understand that industry and its participants. An improved understanding of an industry enhances public discussion on policy issues facing the industry and supports well- informed decision-making about that industry and its participants. Effective segmentation also enhances the ability of users to identify and investigate industry trends and emerging issues.

APRA has calculated and published segmentation statistics that have been identified by users as relevant to their needs to ensure that there is consistent identification of, and calculations for, the identified segments. It also minimises the risk that users may unintentionally misuse or misinterpret the statistics, for example, if they did not include statistical adjustments for events like mergers or changes in RSE balance dates. The segmentation statistics have been included in the PDF statistical publication and also in the statistical reports.

5.1.2 Existing approach to segmentation

APRA has to date published superannuation statistics based on three types of segmentations as outlined below.

Fund type segmentation

APRA has used fund type segmentation in all superannuation statistical publications since 1998. APRA’s current fund types are:

  • Corporate funds: RSEs with more than four members established for the benefit of employees of a particular entity or a group of related entities, with joint member and employer control.

  • Industry funds: RSEs with more than four members that have provided for employees working in the same industry or group of related industries. Many industry funds are now public offer funds and offer membership to members of the public.

  • Public sector funds: RSEs and exempt public sector superannuation schemes with more than four members that provide benefits largely for government employees or employees of statutory authorities, or are schemes established by a Commonwealth, State or Territory law. Benefit payments and contributions for public sector funds include both funded and unfunded amounts from the State and Commonwealth government.

  • Retail funds: RSEs with more than four members that offer superannuation products to the public on a commercial basis. All eligible rollover funds (ERFs) and multi-member approved deposit funds (ADFs) are classified as retail funds in APRA’s statistics.

  • Small funds: self-managed superannuation funds (SMSFs) and small APRA funds (SAFs). SMSFs are superannuation entities regulated by the Australian Taxation Office that have less than five members, all of whom are trustees or directors of the corporate trustee. No member can be an employee of another member unless they are related. SAFs are superannuation entities regulated by APRA with less than five members that have an RSE licensee with an Extended Public Offer Entity Licence.

Regulatory type segmentation

In addition, the current Annual Superannuation Bulletin and Superannuation Fund-level Publications segment some statistics by regulatory classification and benefit structure. The regulatory classifications of RSEs are based on the SIS Act, and the prudential and legislative requirements that are prescribed for different types of entities. Current RSE regulatory classifications are:

  • approved deposit funds;

  • eligible rollover funds;

  • exempt public sector superannuation schemes;

  • non-public offer super funds;

  • pooled superannuation trusts (PSTs);

  • public offer super funds; and

  • small APRA funds.

Benefit structure segmentation

RSE benefit structure classifications are based on the RSE’s structure of retirement benefits. APRA classifies RSEs as defined benefit, accumulation or hybrid, where hybrid entities have a combination of defined benefit and accumulation members.

5.1.3 Proposed approach to segmentation

As noted in Chapter 4, APRA proposes to release all non-confidential data in a database, using the data dissemination tool. Accordingly, users will be able to create their own segmentation statistics based on all available data in the database, either in the database itself or using exported data. This potentially reduces the need for APRA to include segmentation statistics in its PDF publications or statistical reports. It also provides an opportunity to consider the level of segmentation, if any, that is appropriate for the different publication formats (i.e. PDF publications and statistical reports) and also the data that are most appropriate and useful to release for these segments in the different formats.

5.1.4 Option for industry segmentation

Segmentation effectiveness depends on arriving at segments that are identifiable, measurable, accessible, substantial, stable, actionable and differentiable.

As part of the new reporting requirements, APRA collects more well-defined categorical information about RSE licensees and their RSEs on Reporting Form SRF 001.0/601.0 Profile and Structure. APRA now collects information on:

  • RSE licensee ownership type: the ownership types are: financial services corporation ownership, employer-sponsor corporation ownership, public sector organisation ownership, nominating organisation ownership, public company ownership or other ownership type.

  • RSE licensee profit status: represents whether the articles of association of the RSE licensee prohibit it, or the RSEs within its business operations, from being a source of income, profit or other financial gain to the RSE licensee owners, or associates of the RSE licensee owners, that establish, control or finance the legal entity.

  • RSE licensee board structure: board structure of the RSE licensee as equal representation required by legislation, equal representation required by governing rules or non-equal representation.

  • RSE membership base: represents the classification of the predominant base of members within the RSE. Predominant base means more than half of the overall numbers of fund members.

Possible segmentation approach

APRA is proposing to include in the new database the data collected on ownership type, profit status, board structure and membership base. This will enable users to undertake their own analysis based on these attributes. In addition, APRA could classify the data into segments, based on some of these attributes, and develop and release statistics for these segments in either or both of the statistical publications and statistical reports.

Figure 1 provides an option for segmenting the industry based on the RSE licensee profit status, with some consideration of the regulatory status of the RSE.

Figure 1 – option for segmentation statistics

Figure 1 option for segmentation statistics displays flow of segmented statistics

Under this option, RSEs could be segmented into three fund types:

  • For profit funds: RSEs with more than four members where the RSE licensee operates on a for-profit basis;

  • Non-profit funds: RSEs with more than four members where the RSE licensee operates on a non-profit basis (excluding non-public offer funds established for the benefit of government employees or employees of statutory authorities, or are schemes established by a Commonwealth, State or Territory law); and

  • Public sector funds: funds with more than four members established for the benefit of government employees or employees of statutory authorities, or are schemes established by a Commonwealth, State or Territory law where the trustee operates on a non-profit basis.

Where APRA collects comparable data for small superannuation funds, consisting of SAFs and SMSFs, APRA could also release statistics for a ‘small funds’ segment. This segment would essentially be the same as the small funds segment currently included in APRA’s statistical publications.

This segmentation option satisfies the effective segmentation criteria of identifiable, measurable, accessible, substantial, stable, actionable and differentiable. This option produces segments that are roughly the same size in terms of assets, are relatively stable over time and would be understood by users. Other options, such as the current fund type segments, are either not as evenly distributed, or not likely to be as stable or as well understood. In particular, options using membership base are not as easily identifiable as the proposed option.

APRA seeks feedback from users on:

  • whether segmentation statistics remain relevant and how they are used;

  • whether the possible segmentation outlined above is relevant and useful;

  • the level of segmentation that may be appropriate, if any, for the different publication formats that are proposed; and

  • the particular data that may be most appropriate and useful to release by segment for the different formats and, in particular, for the statistical publications (PDFs) and statistical reports (via the new data dissemination tool).

5.2 Quarterly MySuper Statistics report

As noted in Chapter 1, under the SIS Act APRA is required to collect and publish data on MySuper products.

Reporting on forms that collect information relating to MySuper products commenced for the first applicable reporting period ending on or after 1 July 2013, with the exception of three forms for which reporting commences from 31 December 2013. RSE licensees must provide the following data for MySuper products on a quarterly basis, as well as on authorisation of a new MySuper product:

  • profile and structure (Reporting Form SRF 001.0 Profile and Structure (Baseline));

  • asset allocation (Reporting Form SRF 533.0 Asset Allocation (SRF 533.0)); and

  • investment performance on a representative member basis (Reporting Form SRF 702.0 Investment Performance (SRF 702.0)).

RSE licensees also need to submit changes to the MySuper product dashboard (Reporting Form SRF 700.0 Product Dashboard (SRF 700.0)) and fees disclosed (Reporting Form SRF 703.0 Fees Disclosed (SRF 703.0)) when changes are made to items reported on those forms.

5.2.1 Format of the report

A primary role of the information collected by APRA is to provide a central repository of information on available MySuper products. RSE licensees are required to make information about their MySuper products available on their website. ASIC also proposes to make information on MySuper products available on its MoneySmart website.

As noted in Chapter 4, APRA proposes to make all quarterly and annual MySuper product data publicly available in the database using the new data dissemination tool.

APRA proposes to also release quarterly MySuper product data in a Quarterly MySuper Statistics report, as outlined in the table below. Publishing MySuper product data in this format will enable users to readily access and analyse the information that is of most relevance to them.

APRA does not propose to release product-level MySuper data in a quarterly PDF statistical publication. Certain aggregate MySuper product statistics will, however, be included in the Quarterly Superannuation Performance Statistics publication, as outlined in the next section.

APRA considers that it is important to publish information on the longer-term performance of MySuper products, which reflects the basis on which the return targets are set for these products. It will take some time for sufficient and reliable long-term performance information to be available on MySuper products and this will be a focus of the proposed annual MySuper statistical (PDF) publication.

APRA intends to consult users in 2014 on the MySuper product-level statistics to be included in an annual MySuper statistical publication (in PDF format), as well as in an annual MySuper statistical report. In the meantime, APRA will make most of the reported MySuper product information available in the statistical report and database formats.

5.2.2 Content of report

The statistics proposed to be included in the Quarterly MySuper Statistics report are summarised in the table below. To provide some context for the report, the table also contains a summary of the statistics expected to be contained in the proposed annual MySuper product-level publication, which APRA will consult on in 2014. The Quarterly MySuper Statistics report will include details on the profile and structure, fees and costs, investment strategy and targets and insurance cover and premiums for each MySuper product. Some investment performance information will also be included on a representative member basis however, as noted above, more complete and longer- term investment performance information will be included in the proposed annual statistical publication.

A draft of the proposed Quarterly MySuper Statistics report is provided on the APRA website.12 This draft shows the default, collapsed view of the report. Users will be able to expand the data items to see more detailed data and longer time series. As this report is designed to be used online, it is best viewed in Excel rather than as a printed report. The information will be ordered in the Quarterly MySuper Statistics report based on the name of the MySuper product.

Data in the tables will be sourced from quarterly returns of MySuper products submitted to APRA, specifically SRF 533.0 and SRF 702.0. Any data reported on an ad-hoc basis during the relevant quarter, specifically Reporting Form SRF 601.0 Profile and Structure, SRF 700.0 and SRF 703.0, will also be included in the quarterly MySuper report to ensure that the most up-to-date data are released. The reports (and database) will contain all current and historical data to allow users to access and create time series.

MySuper level report hierarchy

Topic

Table

Reporting standard

Annual reports

Quarterly reports


Profiles and structure


(Unit) Profile and structure

SRF 001.0 Profile and Structure, SRS 533.0 Asset Allocation, SRF 700.0 Product Dashboard


Report


Report A

Member demographics

SRF 610.2 Membership Profile

Report


Financial performance – product

Financial Performance

SRS 330.2 Statement of Financial Performance (MySuper)

Report

Financial Position

Performance ratios

SRS 330.2 Statement of Financial Performance (MySuper)

Report


Financial performance – representative member

Financial Performance

SRF 702.0 Investment Performance

Report

Report B

Financial Position

Performance ratios

SRF 702.0 Investment Performance

Report

Performance target and realised

SRF 700.0 Product Dashboard,

SRF 702.0 Investment Performance, SRS 533.0 Asset Allocation


Report


Fees and costs

Fees and costs disclosed

SRF 703.0 Fees Disclosed

Report

Report C

Fees and costs actual

SRF 702.0 Investment Performance

Report


Investments

Investments – Target and strategy

SRF 700.0 Product Dashboard,

SRF 702.0 Investment Performance, SRS 533.0 Asset Allocation


Report


Report D

Investments – Performance

SRS 533.0 Asset Allocation

Report

Investments – Position

SRS 533.0 Asset Allocation

Report


Insurance

Insurance premiums disclosed


SRF 703.0 Fees Disclosed


Report


Report E

The proposed Quarterly MySuper Statistics report will include 127 of the 151 data items collected on the relevant forms: SRF 533.0, SRF 700.0, SRF 702.0 and SRF 703.0.

As noted above, subject to the proposal to determine superannuation data to be non-confidential, and APRA’s obligations under the Privacy Act, APRA intends to disseminate all quarterly MySuper product data through the database, from which users will be able to create their own reports. The additional data items that will be available in the database mainly relate to annual items (such as comparison of return target and actual return) and more detailed financial performance and position data.

APRA does not propose to include in the Quarterly MySuper Statistics actual asset allocation, and movements in asset allocation, each quarter. APRA proposes to publish these data in the annual MySuper report as they are not expected to vary significantly each quarter.

In keeping with the normal timeframes for the release of its quarterly statistics, APRA generally proposes to publish the quarterly MySuper reports in February, May, August and November for the reference quarters ending two months prior. For example, the September report would usually be published in mid-November.

However, as noted earlier, as it will take some time to implement the new data dissemination tool, and APRA proposes to release the first edition of the new Quarterly MySuper Statistics report, which covers the September 2013 quarter, in late-2014.

Quarterly Superannuation Performance Statistics

Stronger Super proposed that APRA continue publishing data for the superannuation industry and for individual RSEs, as well as for MySuper products. This will improve the transparency, comparability and accountability of RSE licensees in relation to fees, costs and investment returns.

APRA proposes to continue to publicly release quarterly industry-level statistics in a Quarterly Superannuation Performance Statistics publication. APRA also proposes to release quarterly statistical reports in the new data dissemination tool.

As noted in Chapter 4, however, APRA proposes to release all non-confidential data in a database, using the new data dissemination tool. Accordingly, users will be able to create their own statistical reports based on all available data in the database, either in the database itself or using exported data. This potentially reduces the need for APRA to publish some statistics, such as statistics for industry segments, in its PDF publications or statistical reports. It also provides an opportunity to consider the data that it is most appropriate and useful to publish in the different formats. APRA therefore seeks feedback from users on the particular data that it may be most appropriate and useful to publish in the statistical publications (PDFs) and statistical reports (via the new data dissemination tool).

To maintain consistency with the current APRA statistical publications and reports, the statistics that would be contained in the proposed Quarterly Superannuation Performance Statistics publication and statistical reports are summarised in the table on page 29.

Aggregate quarterly publication hierarchy

Hierarchy

Topic

Reporting standard

Table


Whole of Industry

Summary

Entities

SRF 001.0 Profile and Structure

Key Statistics

Assets

SRF 320.0 Statement of Financial Position, SRF 800.0 Financial Statement

Key Statistics

Coverage

SRF 001.0 Profile and Structure, SRF 802.0 Fund Profile

Key Statistics

Financial performance

Financial performance

SRF 330.0 Statement of Financial Performance

Table 1a: Financial performance

Financial Positio

n SRF 320.0 Statement of Financial Position

Table 1b: Financial position

Performance Ratios

SRF 330.0 Statement of Financial Performance

Table 1c: Performance ratios

Investments

Investments performance

SRF 530.0 Investments,

SRF 531.0 Investment Flows

Table 1d: Investment performance

Investment position

SRF 530.0 Investments

Table 1e: Industry asset allocation


Industry segments

Financial performance

Financial performance

SRF 330.0 Statement of Financial Performance

Table 1a: Financial performance

Financial Positio

n SRF 320.0 Statement of Financial Position

Table 1b: Financial position

Performance Ratios

SRF 330.0 Statement of Financial Performance

Table 1c: Performance ratios

Investments

Investments performance

SRF 530.0 Investments,

SRF 531.0 Investment Flows

Table 1d: Investment performance

Investment position

SRF 530.0 Investments

Table 1e: Industry asset allocation


MySuper products

Financial performance

Financial performance

SRF 533.0 Asset Allocation

Table 5a: Financial performance and position

Financial Positio

n SRF 533.0 Asset Allocation

Table 5a: Financial performance and position

Investments

Investments performance

SRF 533.0 Asset Allocation

Table 5d: MySuper Investment performance

Investment position

SRF 533.0 Asset Allocation

Table 5e: MySuper Asset allocation

 

A draft of a Quarterly Superannuation Performance Statistics publication developed on this basis is available on the APRA website.13 Additional statistics have been included based on the revised quarterly data collected from 1 July 2013. It also continues time- series on the financial performance and position of the superannuation industry at an aggregate level. A list of the additional statistics included in the proposed statistical report version can be found at the end of the proposed Quarterly Superannuation Performance Statistics publication.

The time-series in the draft publication covers the most recent five quarters, plus the year end for the current and previous year. This provides a modified continuation of the time series published in the current Quarterly Superannuation Performance Statistics.

APRA’s view is that, to support and encourage analysis by stakeholders of the achievement by the superannuation industry of retirement income policy objectives over the medium to long term, it may be more appropriate to report information in the Quarterly Superannuation Performance Statistics that reflects longer time periods, such as three or five years. Quarterly and annual performance information would continue to be available in the statistical report and database.

Similarly, the draft PDF publication (and statistical report) includes all data that APRA collects that can be published as useful statistics, subject to confidentiality constraints. This approach allows users to drill down from the key statistics to understand drivers of movements and trends, e.g. by industry segment, without users needing to refer to other documents or online sources. This detailed drill down information could alternatively be made available only in the statistical report and database. This would enable the PDF publication to be more concise and targeted, focusing on the data that are viewed as most relevant and useful by users.

APRA seeks views on the time periods and industry segments for which statistics should be included in the Quarterly Superannuation Performance Statistics publication and in the statistical reports.

Data in the quarterly publications will be sourced from quarterly forms submitted to APRA, specifically Reporting Form SRF 330.0 Statement of Financial Performance; SRF 320.0; Reporting Form SRF 160.1 Defined Benefit Member Flows; Reporting Form SRF 530.0 Investments; Reporting Form SRF 530.1 Investment and Investment Flows – transition only; Reporting Form SRF 531.0 Investment Flows; and SRF 533.0.

Data for small funds (funds with four or fewer members) are not available quarterly, as reporting requirements for SAFs are annual. As such, the data in the Quarterly Superannuation Performance publication will be presented for RSEs with over four members only. PSTs will continue to be excluded when calculating financial position to prevent double counting assets and liabilities.

The proposed Quarterly Superannuation Performance Statistics publication does not include aggregated statistics on select investment options. APRA will consider whether it is appropriate to publish aggregate statistics for these options once the relevant reporting requirements are finalised.

APRA proposes to publish the Quarterly Superannuation Performance Statistics publication in February, May, August and November for the reference quarters ending two months prior. However, as outlined earlier, APRA proposes to release the first edition of the revised Quarterly Superannuation Performance Statistics publication for the September 2013 reference period in late-2014.

Appendix A – Superannuation reporting framework

Frequency

Reporting standard

Reporting structure

Annual

Qtly

Ad-hoc

For periods ending on or before 30 June 2014

For periods ending on or after 1 July 2014

SRF 001.0 Profile and Structure

RSE Licensee

Y

Y

Yes

Yes

SRF 114.0 Operational Risk Financial Requirement

RSE Licensee

Y

Yes

Yes

SRF 114.1 Operational Risk Financial Requirement

RSE, SAF

Y

Yes

Yes

SRF 160.0 Defined Benefit Matters

RSE, SAF, DB sub-fund

Y

Yes

Yes

SRF 160.1 Defined Benefit Member Flows

RSE, DB sub-fund

Y

Yes

SRF 161.0 Self-insurance

RSE

Y

Yes

Yes

SRF 250.0 Acquired Insurance

RSE

Y

Yes

Yes

SRF 320.0 Statement of Financial Position

RSE

Y

Y

Yes

Yes

SRF 320.1 Statement of Financial Position

DB sub-fund

Y

Yes

SRF 330.0 Statement of Financial Performance

RSE

Y

Y

Yes

Yes

SRF 330.1 Statement of Financial Performance

Select investment option, DB sub-fund


Y


Yes

SRF 330.2 Statement of Financial Performance

MySuper product

Y

Yes

Yes

SRF 331.0 Services

RSE

Y

Yes

Yes

SRF 410.0 Accrued Default Amounts

RSE

Y

Yes

Yes

SRF 520.0 Responsible Persons Information

RSE Licensee

Y

Y

Yes

Yes

SRF 530.0 Investments

RSE

Y

Y

Yes

SRF 530.1 Investments and Investment Flows (transition only)


RSE

Y

Y


Yes

SRF 531.0 Investment Flows

RSE

Y

Y

Yes

SRF 532.0 Investment Exposure Concentrations

RSE

Y

Yes

SRF 533.0 Asset Allocation

MySuper investment option, Select investment option

Y

Y


Yes - MySuper only

Yes - MySuper and select investment

SRF 534.0 Derivative Financial Instruments

RSE

Y

Yes

SRF 535.0 Securities Lending

RSE

Y

Yes

SRF 540.0 Fees

RSE, MySuper product

Y

Yes

Yes

SRF 600.0 Profile and Structure (RSE Licensee)

RSE Licensee

Y

Yes

Yes

SRF 601.0 Profile and Structure (RSE)

RSE

Y

Yes

Yes

SRF 602.0 Wind-up

RSE

Y

Yes

Yes

SRF 610.0 Membership Profile

RSE, SAF

Y

Yes

SRF 610.1 Changes in Membership Profile

RSE

Y

Yes

SRF 610.2 Membership Profile

MySuper product

Y

Yes

Yes


SRF 700.0 Product Dashboard

MySuper investment option, Select investment option


Y


Y


31-Dec-13


Yes


SRF 702.0 Investment Performance

MySuper investment option, Select investment option


Y


Y


Yes - MySuper online

Yes - MySuper and select investment

SRF 703.0 Fees Disclosed

MySuper product

Y

Y

Yes

Yes

SRF 710.0 Conditions of Release

RSE

Y

Yes

Yes

SRF 800.0 Financial Statements

SAF

Y

Yes

Yes

SRF 801.0 Investments and Investments Flows

SAF

Y

Yes

Yes

SRF 802.0 Fund Profile

RSE Licensee

Y

Yes

Yes

 Existing forms continuing for 2013-2014

SRF_110_1_A Selected Disclosure of Investments Version A - 100 Series

 

RSE


Y


Yes

SRF_110_1_B Selected Disclosure of Investments Version B - 100 Series

RSE

Y

Yes

SRF_110_2 Derivative Financial Instruments - 100 Series

RSE

Y

Yes

SRF_120_0 Exposure Concentrations - 100 Series

RSE

Y

Yes

SRF_210_1 Selected Disclosure of Investments - 200 Series

RSE

Y

Yes

SRF_210_2 Derivative Financial Instruments - 200 Series

RSE

Y

Yes

SRF_220_0 Exposure Concentrations - 200 Series

RSE

Y

Yes

SRF_240_0 Member Profile - 200 Series

RSE

Y

Yes

  

Appendix B – List of reporting standards subject to the proposed determination

  • Reporting Standard SRS 001.0 Profile and Structure (Baseline)

  • Reporting Standard SRS 161.0 Self-Insurance

  • Reporting Standard SRS 250.0 Acquired Insurance

  • Reporting Standard SRS 320.0 Statement of Financial Position

  • Reporting Standard SRS 320.1 Statement of Financial Position

  • Reporting Standard SRS 330.0 Statement of Financial Performance

  • Reporting Standard SRS 330.1 Statement of Financial Performance

  • Reporting Standard SRS 330.2 Statement of Financial Performance

  • Reporting Standard SRS 331.0 Services

  • Reporting Standard SRS 410.0 Accrued Default Amounts

  • Reporting Standard SRS 520.0 Responsible Persons Information

  • Reporting Standard SRS 530.0 Investments

  • Reporting Standard SRS 530.1 Investments and Investment Flows

  • Reporting Standard SRS 531.0 Investments Flows

  • Reporting Standard SRS 532.0 Investment Exposure Concentrations

  • Reporting Standard SRS 533.0 Asset Allocation

  • Reporting Standard SRS 534.0 Derivative Financial Instruments

  • Reporting Standard SRS 535.0 Securities Lending

  • Reporting Standard SRS 540.0 Fees

  • Reporting Standard SRS 600.0 Profile and Structure (RSE Licensee)

  • Reporting Standard SRS 601.0 Profile and Structure (RSE)

  • Reporting Standard SRS 602.0 Wind-up

  • Reporting Standard SRS 610.0 Membership Profile

  • Reporting Standard SRS 610.1 Changes in Membership Profile

  • Reporting Standard SRS 610.2 Membership Profile

  • Reporting Standard SRS 710.0 Conditions of Release

  • Reporting Standard SRS 800.0 Financial Statements

  • Reporting Standard SRS 801.0 Investments and Investment Flows

  • Reporting Standard SRS 802.0 Fund Profile

Superseded reporting standards

  • Reporting Standard SRS 100.0 Statement of Financial Performance

  • Reporting Standard SRS 110.0 Statement of Financial Position

  • Reporting Standard SRS 110.1 Selected Disclosure of Investments

  • Reporting Standard SRS 110.2 Derivative Financial Instruments

  • Reporting Standard SRS 120.0 Exposure Concentrations

  • Reporting Standard SRS 210.1 Selected Disclosure of Investments (parts B and D)

  • Reporting Standard SRS 210.2 Derivative Financial Investments

  • Reporting Standard SRS 220.0 Exposure Concentrations

  • Reporting Standard SRS 260.0 Trustee Statement


Footnotes

1 Where data are provided under the Financial Sector (Collection of Data) Act 2001

2 http://www.apra.gov.au/Super/Publications/Documents/ ProposedQuarterlySuperannuationPerformance.pdf

3 Refer to s. 3 of the FSCOD Act.

4 Refer to section 3.36 of the Explanatory Memorandum to Tranche 3 Act.

5 Refer to s. 13(4A) of the FSCOD Act.

6 http://www.apra.gov.au/Super/ReportingFramework/Pages/Super-reporting.aspx

7 http://www.apra.gov.au/Super/Publications/Pages/Super-statistics.aspx

8 Where data are provided under the FSCOD Act.

9 In addition to data submitted under the FSCOD Act, each RSE licensee also provides additional information for supervisory purposes, such as information relating to policy documents or strategic plans. This information, which changes depending on APRA’s supervision requirements, is collected outside the FSCOD Act and APRA is not proposing to determine such information to be non-confidential.

10 APRA determined some data non-confidential for funds that do not balance on 30 June to enable calculation of comparable rates of returns across all funds.

11 Refer to Reporting Standard SRS 200.0 Statement of Financial Performance; Reporting Standard SRS 210.0 Statement of Financial Position; Reporting Standard SRS 210.1 Selected Disclosure of Investments (parts A, C and E); Reporting Standard SRS 230.0 Transactions with Associated Entities; Reporting Standard SRS 240.0 Membership Profile; and Reporting Standard SRS 250.0 Superannuation Entity Profile.

12 http://www.apra.gov.au/Super/Publications/Documents/ProposedQuarterlyMySupertatisticreport.xlsx

13 http://www.apra.gov.au/Super/Publications/Documents/ProposedQuarterlySuperannuationPerformance.pdf