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Industry fears 'adverse impact' from APRA's data transparency plan

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The Financial Services Council (FSC) has urged the prudential regulator to review its plans for improving the transparency of published data.

It says the Australian Prudential Regulation Authority’s (APRA) proposal relating to the “unmasking of certain data” will either provide or make it possible to infer detailed information regarding individual life insurers.

“Where publication of such information constitutes either all, or a material part, of a listed entity, we believe this would result in confusion for investors on a listed market,” the FSC says in a submission to APRA.

FSC also believes the plan could “unfairly prejudice such an entity if this information were published before disclosure to the market.”

The council recommends that APRA only publish data where the individual institutions cannot be separately identified or they have agreed in writing to the disclosure. Another option would be to release the information after the listed entities have reported to the market.

APRA last month called for submissions on the plans, which could take effect in the second-half of this year.

The Insurance Council of Australia, representing general insurers, has also made a submission strongly opposing the plan.