The Financial Services Council (FSC) has encouraged to use caution when it comes to the Australian Prudential Regulation Authority (APRA’s) proposed heatmapping exercises to make comparisons between superannuation funds.
FSC’s chief executive, Sally Loane, warned that the information should not be reviewed in isolation nor interpreted in to simplistic table by commentators.
“The industry has not consulted on methodology, so we don’t have full understanding of APRA’s approach, this is why we caution against using the information to make a like-for-like comparison for products,” she said.
“We urge APRA to open to engaging on genuine concerns about data and methodology over the coming weeks.”
According to the FSC, there was a case for being able to directly compare MySuper products in this format with the appropriate methodology and there were concerns about APRA’s intention to expand this project to choice superannuation funds.
“We recommend APRA be cautious in extending this exercise to choice products before they have access to appropriate, comparable data,” Loane said.
“The FSC and our members will review the documents released today in detail, and we look forward to ongoing engagement with APRA as they improve their data collection, analysis and publication capabilities.”