Contact: Tony Brain
Deloitte
Partner - Superannuation Assurance & Advisory
+61 (0) 3 9208 7149

Contact: Petros Kosmopoulos
Deloitte
Media & Communications Manager
+61 (0) 3 9208 7621

Contact: Louise Denver
Deloitte
Financial Services Media
+61 (0) 2 9322 7615

The call yesterday for a single online breach reporting system for dual-regulated institutions was welcomed by Deloitte as another positive step to reduce red tape for superannuation funds.

The discussion paper Streamlining Breach Reporting released jointly by the Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC), proposes eliminating the requirement for jointly regulated institutions to provide separate breach reports for the same incident to both regulators.

Tony Brain, Deloitte Superannuation Assurance and Advisory partner, said the joint proposal was another step towards making reporting of breaches more efficient and effective.

“Both APRA and ASIC should be congratulated for this proposal.  Deloitte strongly supports it,” said Mr Brain.

“It’s a win-win situation for both superannuation funds and regulatory authorities.

“The proposal of a ‘one stop shop’ would improve, streamline, and reduce the cost of the reporting of breaches and would be eagerly received by superannuation funds.

“From the regulators’ perspective, the streamlining of these services will stop duplication and allow authorities to monitor breaches more effectively,” Mr Brain said.

Sarah Woodhouse, Deloitte Regulatory Partner who chaired the Australasian Compliance Institute’s Materiality and Breach Reporting Working Group endorses Brain’s view.

“This is definitely a step in the right direction for all financial services entities with regulatory reporting obligations,” she said.

This facility will also be made available to other APRA regulated entities – ADIs, general insurers and life insurers.

Previously, online breach reporting was something only available to superannuation funds.

This adds further to the consistent approach regulators are taking in this area.

The proposal comes hot on the heels of the recent passage through Parliament of the Financial Sector Legislation Amendment (Simplifying Regulation and Reform) Act 2007.

The Act introduces a consistent definition of reportable breaches across all institutions in APRA-regulated industries and all ASIC-regulated Australian Financial Services licensees.

APRA and ASIC invite interested parties to comment on the proposals by 31 October 2007.

The discussion paper is available on the APRA website and the ASIC website.