Yes. The trustee asking the right questions is one thing. If the flow of information to the trustee is controlled by other parts of the business, how can the trustee know what question to ask?I I think it’s a practical reality that a lot of the information that – comes to the trustee necessarily comes from their service providers, and in a retail group they would be related party service providers. I don’t think that means that the trustee can’t, therefore, ask for different information or more information, or obtain information from other parties, or require independent review of the information that is provided to them in order to to form and make better decisions. Indeed, our – expectation excuse me, Commissioner. – No, finish?Would be that trustees would take some of those steps to satisfy themselves that they were getting the right information and asking the right questions. How can APRA form any judgment whether the trustee is doing its job properly?Through our supervision activities and our engagement with the the – trustee and other parties within the operations of the trustee itself and their material service providers, and also through our review of the information that the trustee itself is looking at and our assessment as to whether that is adequate and and – sufficient to enable them to fulfil their duties. Yes. Is anything arising, Mr Hodge? MR HODGE: No, Commissioner, although I would just like to follow on with one other question THE COMMISSIONER: Yes. MR Or one other set of questions. Can we bring up paragraph 253 of Ms Rowell’s statement. That’s on page 38?Yes. So in this paragraph you’re expressing the position of APRA which is it strongly supports certain amendments which are going to expand APRAs powers to be able to give directions to trustees?That’s correct. And it will be possible, if the Bill passes, for APRA to direct trustees to make changes to the systems, business practices, or operation?That’s correct. And, indeed, in subparagraph (g): To do, or refrain from doing, anything else in relation to the affairs of the licensee, the funds for which that licensee is the trustee or any subsidiary. ?Yes.
Yes. The trustee asking the right questions is one thing. If the flow of information to the trustee is controlled by other parts of the business, how can the trustee know what question to ask?I – I think it’s a practical reality that a lot of the information that comes to the trustee necessarily comes from their service providers, and in a retail group they would be related party service providers. I don’t think that means that the trustee can’t, therefore, ask for different information or more information, or obtain information from other parties, or require independent review of the information that is provided to them in order to – to form and make better decisions. Indeed, our expectation – excuse me, Commissioner. No, finish?Would be that trustees would take some of those steps to satisfy themselves that they were getting the right information and asking the right questions. How can APRA form any judgment whether the trustee is doing its job properly?Through our supervision activities and our engagement with the – the trustee and other parties within the operations of the trustee itself and their material service providers, and also through our review of the information that the trustee itself is looking at and our assessment as to whether that is adequate and – and sufficient to enable them to fulfil their duties. Yes. Is anything arising, Mr Hodge? MR HODGE: No, Commissioner, although I would just like to follow on with one other question THE COMMISSIONER: Yes. MR Or one other set of questions. Can we bring up paragraph 253 of Ms Rowell’s statement. That’s on page 38?Yes. So in this paragraph you’re expressing the position of APRA which is it strongly supports certain amendments which are going to expand APRAs powers to be able to give directions to trustees?That’s correct. And it will be possible, if the Bill passes, for APRA to direct trustees to make changes to the systems, business practices, or operation?That’s correct. And, indeed, in subparagraph (g): To do, or refrain from doing, anything else in relation to the affairs of the licensee, the funds for which that licensee is the trustee or any subsidiary. ?Yes.
transcript-17-August-2018.docx