Welcome to the latest issue of the KHQ Super Alert. This week, ASIC issued a new information sheet on warnings and reprimands given to financial advisers, while APRA registered its amended SPS 250 Insurance in Superannuation and published a response letter on its proposed amendments to SPS 310 Audit and Related Matters.
ATO – Transitional compliance approach extended for NALI guidelines
On 10 June 2022, the ATO updated its ‘Advice and Guidance Issue List’ to advise that it will update Practical Compliance Guideline 2020/5 Applying the non-arm’s length income provisions to ‘non arm’s length expenditure’, to extend the ‘transitional compliance approach by another 12 months’. The ATO has explained that it ‘will not allocate compliance resources in the 2022-23 financial year to determine whether the non-arm’s length income provisions apply to all the income of the fund where it incurs non-arm’s length expenditure of a general nature on or before 30 June 2023. The extension will provide the community with greater certainty on our administrative approach while we work on resolving the concerns of industry’.
Click here for details.
ASIC – Guidance for warnings and reprimands given to financial advisers
On 9 June 2022, ASIC issued a media release advising that it had released Information Sheet 270 Warnings and Reprimands (INFO 270). ASIC noted that ‘[t]he requirement to give warnings and reprimands to financial advisers in specified circumstances was introduced by the Financial Sector Reform (Hayne Royal Commission Response—Better Advice) Act 2021’. INFO 270 explains:
- ‘what warnings and reprimands are
- when ASIC will give a warning or reprimand
- how ASIC will communicate the giving of a warning or reprimand
- when and to whom ASIC will provide procedural fairness before giving a warning or reprimand, and
- the adviser’s right of review of ASIC’s decision to give a warning or reprimand’.
Click here for details.
APRA – Response letter on proposed amendments to SPS 310
On 9 June 2022, APRA published an update to announce that it had ‘released a response letter on its proposed amendments to SPS 310 [Audit and Related Matters] published for consultation on 10 December 2021’.
In the letter, APRA has ‘considered the feedback received from industry regarding timing’ and has ‘decided to delay the commencement of the proposed amendments to [SPS 310 until] the financial year ending 30 June 2023’. APRA noted that it will ‘provide a further update on any refinements when it finalises SPS 310 later in 2022’.
Click here for details.
ASIC – 2021/21 Cost recovery implementation statement released
On 6 June 2022, ASIC issued a media release advising that it had released its draft ‘Cost Recovery Implementation Statement’ for the 2021-22 financial year. The draft Statement ‘outlines ASIC’s estimated regulatory costs for 2021-22 and how it is proposed these will be recovered as levies under the industry funding model’. ASIC has indicated that the ‘[f]inal levies will be published in December 2022 and invoiced between January and March 2023’.
Click here for details.
Legislation – New family law superannuation interest rate determination registered
On 6 June 2022, the Family Law (Superannuation) (Interest Rate for Adjustment Period) Determination 2022 was registered on the Federal Register of Legislation. The Determination ‘provides the interest rate for adjusting entitlements under certain orders or agreements made under the Family Law Act 1975 and for splitting future superannuation benefits’ for the 2022/23 financial year.
The instrument commences on 1 July 2022.
Click here for details.
APRA – SPS 250 Insurance in Superannuation
On 3 June 2022, amended Prudential Standard SPS 250 Insurance in Superannuation was registered on the Federal Register of Legislation. As referred to in our Super Alert of 19 November 2021, this amended version of SPS 250 comes into effect on 1 July 2022.
Click here for details.
ASIC – Financial reporting changes for AFS licensees
On 3 June 2022, ASIC issued a media release to announce that it had published ‘new financial reporting requirements for Australian financial services (AFS) licensees, following changes to the accounting standards’. ASIC added that ‘[u]nder the new reporting requirements, AFS licensees’ financial reports must contain disclosures consistent with the financial reports of other for-profit entities, prepared under standards set by the Australian Accounting Standards Board’.
Click here for details.
Want KHQ Super Alerts delivered straight to your inbox each week? Click here to subscribe.
