The Australian Prudential Regulation Authority (APRA) is investigating promotional activity by 12 registrable superannuation entities (RSE) and will publish any broad observations in 2022.
In an answer to questions on notice from the Senate Committee on Economics about Cbus Super’s AFL grand final advertisements costs, APRA said it had written to a number of RSE licensee to obtain information on aspects of their marketing expenditure and how they considered the impact of the best financial interests duty on their expenditure.
“At this time, we are unable to be precise as to the timing, other than to say that we intend to send the information request prior to the end of calendar 2021; and publish any broad observations in 2022,” APRA said.
“We would be happy to provide further information to the committee once we have finalised our work.
“We also are considering what changes to our ongoing supervisory practices we may introduce to obtain a more contemporary view of RSE licensees’ practices and oversight in relation to expenditure on an ongoing basis. This work is at an early stage and we have not yet determined a finalisation date for this.”
APRA noted it also intended to write to a larger group of RSE licensees to obtain information as to how they had changed their approach in response to the best financial interests’ duty as part of the Your Future, Your Super reforms.
“Finally, APRA’s review of expenditure (which reviewed certain marketing and promotional expenditure by 12 RSE licensees) will be published shortly,” it said.
“Notwithstanding that this review covered expenditures undertaken in the period prior to the introduction of the best financial interests’ duty, we believe it will provide useful context and background as to industry practice.”
