APRA urged to ensure super data quality
The Australian Prudential Regulation Authority (APRA) has been urged to push out the timeframes around its collection of superannaution data in the interests of improving its underlying quality.
APRA's new data reporting standards will come into play for the first quarter of this financial year, with data due by 28 October.
However, superannuation consultants IQ Group are calling on APRA to push out the timeframe for quarterly super data reporting - at least for the first year - from the 20 business days it currently has to submit data to APRA to 30 business days, which could then be scaled back to 20 business days in time.
IQ Group principle consultant Tony Gold said the current timeframe would invariably produce complications by way of data quality.
"APRA's push for data quality is very important ... (but) if APRA is not able to relax the timeframes they may not get the outcome they want," Gold said.
The timeframe would put pressure on custodians, who were already implementing new processes, to deliver data to trustees in time for the scheme's accounting, he said.
"Month-end processes will not be able to complete on time as hard closes are staggered to enable a custodian to deal with volume and delivery, and we will find that they will typically have investment information ready for trustees anywhere from business day 12-16," Gold said.
"And further, the option of relying instead on ‘soft close' data at business day 5 would inevitably increase the risk of duplication and/or omission, working against APRA's drive for quality, accuracy and completeness of data."
APRA may find itself dealing with quality issues involving a back-and-forth with super fund trustees, while data quality may make schemes incomparable.
APRA has already acknowledged the complexity and onerous task that new data requirements may pose to super fund trustees, and earlier this year extended some reporting requirements and reduced the frequency of others.
Originally published on SMSF Essentials.
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