Discretionary mutual funds (DMF) must submit another year of financial returns to the Australian Prudential Regulation Authority (APRA) while consideration of how to regulate them remains “in progress”.

APRA has collected financial returns from DMFs since 2008, after the Potts report in 2004 advised against prudential regulation for the funds and foreign insurers that adhere to similar standards in their home jurisdictions.

It is the second extension to the data collection program following the three-year period initially set by APRA.

DMFs sell insurance-like products, but because insurance claims are not guaranteed they are free to operate outside of Australia’s prudential regulation system.

The funds will be required to submit their 2013 financial reports to APRA within four months of their balance date.