Superannuation is different and needs to be treated as such
The business models of superannuation funds are distinctly different to those of the banks and insurers and need to be recognised as such.
That is the view of the Association of Superannuation Funds of Australia (ASFA) which is urging the Government to be cognisant of these differences when seeking to impose new regulatory structures aimed at protecting critical infrastructure and systems of national significance.
ASFA is claiming that superannuation funds are already heavily regulated and that any new measures will need to be carefully calibrated to avoid duplication.
“ASFA would also like to highlight that the business model of superannuation funds is substantially different from that of banks and insurers with there being varying degrees of insourcing and outsourcing of its basic activities such as administration, investment management, insurance and claims management services, and custodial services,” it said.
“Any regime designed to bolster security and resilience would need to take account of these different models, the role of the various providers in the business models and the range of risks that are relevant,” the ASFA submission said.
It said that in these circumstances it would be beneficial to bring together representatives of the superannuation industry and the relevant regulators to discuss the particular features of the superannuation industry and existing regulation.
ASFA said it would be happy to organise such a meeting.
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