IN THIS ISSUE

• Members Webinar – October 2021
• Digital Asset taskforce
• Super Data Transformation goes live
• A global perspective
• ACSA website refresh – reminder
• In Focus - Nicole Carnovale
  

MEMBERS WEBINAR - OCTOBER 2021

Our guest speaker was Graeme Arnott, Principal, Actuarial Consulting Services, Deloitte shared his insights on the current focus of large superannuation funds and the critical importance that data plays in managing and governing funds. Graeme is uniquely placed to speak to the ACSA members given his experience in the industry and as a leader and now consultant for larger superfunds.

Additionally, Danielle Gerace, ACSA Digital Taskforce Chair updated members on the Digital Assets as a key issue shaping the focus of ACSA and its members.

You provided some great feedback through the polls including:

• Future of work – you feel 1-3 days in the office is the preferred work model (67%)
• Key trend shaping our industry – Digital assets (62%)
• Biggest digital asset impact – Custody and safekeeping (36%)
• Primary use of ACSA website – Industry Statistics (41%)
  

The scale and speed with which cryptocurrencies and other digital assets have progressed in recent years has surprised governments, regulators, and policy makers. With a global market now totalling in the trillions of dollars, the tremendous potential of blockchain technology and decentralised finance is becoming recognised by mainstream institutions and investors. ACSA recognises the need to understand the impact and implication of new regulation and guidelines on ACSA members and our clients. Digital Assets will become an increasing part of future priorities.

The Australian Senate recently released a Senate Select Committee report which made a range of recommendations regarding industry structure, regulations and licensing to ensure Australia’s ongoing competitiveness as a financial centre. It concluded that Australia has significant potential to keep advancing as a technology and financial centre, if we grasp the opportunity to update our regulatory frameworks, drive innovation and enhance our competitiveness.

In prior editions of the Industry Wrap we have provided insight into the developments in Digital Assets in Australia and globally. The ACSA executive has approved the formation of a taskforce to enable ACSA to consider, advocate and respond to future industry, government and client demands. The ACSA executive believes that Digital Assets will be a key focus for ACSA in 2022.

The ACSA Digital Asset Taskforce is being sponsored by Sean Gardiner, Executive Director, Head of ANZ Custody Middle Office and Managed Fund Operations, JP Morgan and Chaired by Danielle Gerace, Senior Vice President, Head of Market Advocacy & Innovation Research, Northern Trust. They are supported by a number of ACSA members. 

If you are interested in joining the taskforce, please email admin@asca.com.au.

You can also view a recorded update by ACSA Chair Sally Surgeon and Alternate Director Sinclair Scholfield here.

SUPERANNUATION DATA TRANSFORMATION(SDT) GOES LIVE

First Reports Lodged

ACSA members have lodged their first SDT reports to APRA – a fantastic achievement for those involved across the industry.

APRA released their final SDT Regulations in March 2021, and the initial data reporting was submitted at the end of October 2021 - this was the result of significant data management projects across ACSA members.

The ACSA Regulatory working group and Data Taskforce have worked diligently over the last year to contribute to the development and implementation approaches for SDT to ensure that the APRA data requirements and expectations could be delivered by ACSA members. Well done to all involved.

ACSA recommendations for a staged implementation of the APRA SDT program resulted in the program being staged from 30 June 2021 to 30 June 2023. In addition, ACSA recommendation for deferrals to Phase 1 reporting resulted in APRA moving some reporting asset classes and/or asset class characteristics from compulsory to best endeavours, that being, compulsory reporting as at 30 June 2021 now deferred to 30 June 2022.

ACSA working group also raised issues with the market availability to some of the newly created definitions, APRA will now run industry working groups to address these issues faced across the industry.

No rest though, the next submissions are due in January, and additional data being added to the existing reporting requirements as the program is implemented through to June 2023.

Background

APRA’s Superannuation Data Transformation (SDT) project aims to drive better industry practices and improve member outcomes by significantly enhancing the comparability and consistency of reported data. The project will make it easier to scrutinise and reliably compare fund and product performance, especially in the choice segment of the market.

Given the scale and complexity of the project, APRA has divided the consultation into three phases:

• Phase 1 (Breadth) will address the most urgent gaps in APRA’s data collection, particularly for choice products and investment options;
• Phase 2 (Depth) will increase the granularity of the entire collection, taking advantage of APRA’s new Data Collection Solution and enhanced data analytic capabilities; and  
• Phase 3 (Quality) will assess the quality and consistency of the additional data reported during Phases 1 and 2, and review and address any implementation issues.
  

Each phase will involve the release of multiple topic papers, each covering a different aspect of the consultation.

GLOBAL PERSPECTIVE

ACSA connecting globally

ACSA is a member of the International Securities Services Association (ISSA) to ensure that ACSA members can benefit from connectivity and contribution to issues affecting securities services businesses globally. ACSA connects quarterly with ISSA executives to gain perspective and understanding of the current global issues and priorities for ISSA.

At our recent quarterly meeting it was encouraging to see that many of the current challenges and future priorities for ACSA and ISSA are growing in alignment. Particularly the continued emergence of crypto and digital assets and technologies and their impacts on markets, clients, and industry participants alongside the growing need to engage on Environmental Sustainability Governance (ESG) issues as markets and industries define standards and regulatory principles. Both ACSA and ISSA also have key agendas dealing with tax and proxy voting, albeit one local and one global in focus.

Background on ISSA.

ISSA is a Swiss-domiciled association that supports the securities services industry. ISSA’s members include CSDs, custodians, technology companies and other firms who are actively involved in all aspects of the securities services value chain.

ISSA has three core goals, which are:

• To connect securities services industry leaders and stakeholders
• To collaborate on key themes that impact all participants in the securities services value chain
• To change the industry through the development and delivery of forward-looking solutions
  

By connecting its members and facilitating collaboration, ISSA provides the leadership necessary to drive change in the securities services industry. The focus is on finding progressive solutions to reduce risk and improve efficiency and effectiveness – from issuer through to investor – as well as on providing broader thought-leadership to help shape the future of the industry.

If you wish to know more about ISSA register for their newsletter here.

ACSA will keep you updated each month on global securities services issues.

ACSA'S REFRESHED WEBSITE - REMINDER

In late 2020 the ACSA Board set the Members & Services (M&S) Working Group the task of refreshing the ACSA website. Uplift in content, improved appearance and enhance navigation were key objectives. The website is an important communications channel for the ACSA community, and plays a key role in projecting who we are and what we stand for to external stakeholders. Most importantly, the website provides a channel for information sharing relevant to our members.

After great work by M&S contributors, lea by Nicole Carnovale from Northern Trust and ably supported by ACSA’s executive assistant Kate Dent, the new website is up and running.

Check it out at www.acsa.com.au

Engagement is currently underway with the ACSA community, starting with Working Group sponsors, chairs and deputies to ensure the website remains “all about you” with relevant content, consistent with our brand, and reflective of our Association’s key advocacy positions. 

IN FOCUS

Nicole Carnovale

Nicole Carnovale is the APAC Senior Product Manager for Data with Northern Trust. Nicole has over 20 years experience in marketing, product development, customer experience and analytics in the financial services industry.

Prior to joining Northern Trust, Nicole was head of marketing at a superannuation fund also worked at a superannuation administrator where she provided consulting services for marketing, product and customer experience to superannuation funds and was also responsible for product development of online services and digital channel tools. Nicole holds a Master of Marketing from Monash University and a Bachelor of Business from RMIT University.

What made you want to join the Member and Services ACSA working group ?

While I have been in the financial services industry for many years, when I joined Northern Trust I was new to the custody sector. Joining the Member and Services Working Group has given me an opportunity to not only learn about our sector, but also get to know and network with others in the sector who have a vast variety of experience.

How would you describe your experience of building the new ACSA website?

Leading the development of the ACSA website on behalf of the Working group was a rewarding experience because it gave me the opportunity to build on my passions of communication and digital developments.

While the end result is a website that is a vast improvement on the previous version, it was as much the journey to get to it that I really enjoyed. We employed many initiatives such as surveys and developing personas to get to intimately know ACSA members, how they use the website and their expectations. Taking the Working Group through this journey gave everyone a chance to be part of the development of the new website.

You’ve had a long career in financial services, tell us about your experience?

As a kid I always liked taking things apart and building things. Lego was my favourite toy. So it’s no surprise that throughout my career that I these have been the tenets of my job roles.

I started my career building websites when they were just brochure-ware (I know, I’m showing my age here) and also introduced Internet Banking sites when financial institutions were only just starting to understand the power of the internet. Navigating through emerging technology and latent legislation around the internet was an everyday occurrence, and the challenge of introducing new and exciting digital developments was an exciting prospect. Yet, it was not enough for me to just build new tools, I also enjoyed and led the marketing of the services, that is getting people to use them. Once again, this was new ground for many marketing teams because some of these technologies were so new that customers had difficulty grasping the benefits to themselves. So, as you can see, I love anything new, evolving or emerging. I have been fortunate that I have been able to apply and build on my passions in many and varied roles in marketing, product development, customer experience and analytics within the financial services industry. For any new career starters reading this, I encourage you to bring your passions to work, whatever they may be, because you’ll find that the outcome of your work will be that little sweeter…like adding a cherry of top of what you do!

Why should people get involved in ACSA?

There are so many reasons to get involved with ACSA Working Group such as enhancing your current skills within the broader industry or developing new skills that you may not have the opportunity to do so in your current role. You’ll also get to know and work with other people across the industry where you can share idea and insights.

I will say though, you need to make sure you can dedicate adequate time to ACSA. While all the Working Groups will have suggested times that you should be available, generally it will be a couple to few hours per month. The Working Groups do require you to be an active contributor, therefore if you can’t devote the time, then it’s best to consider if you should be involved. Speaking from experience, the time I have dedicated to the Working Group has resulted in many more benefits that I ever expected and worth every minute.