Welcome to the latest issue of the KHQ Super Alert. This week, APRA commenced several public consultations in relation to proposed enhancements to the SFT process and changes to nine reporting standards. Meanwhile AUSTRAC commenced consultation on enhanced customer due diligence guidance.
APRA – Proposed enhancements to SFT framework
On 10 November 2022, APRA released a discussion paper for consultation. The paper, titled Superannuation transfer planning: Proposed enhancements, outlines ‘proposals aimed at ensuring trustees prepare for, manage and execute successor fund transfers (SFT) more smoothly and efficiently’.
APRA proposes to introduce new requirements under the following themes:
- ‘for all trustees to be prepared for a future transfer of members, elevating what was previously guidance; and
- relating to the transfer of MySuper assets within 90 days in the event that APRA cancels a trustee’s authority to offer a MySuper product’.
Consultation will close on 10 March 2023.
Click here or here for details.
OAIC – New data breach report released
On 10 November 2022, the OAIC released the January to June 2022 Notifiable data breaches report. The report shows that there were 396 data breaches in the period reported, with the Finance sector (including superannuation) being the second highest reporter of data breaches (52 reports). Of all breaches reported, 41% resulted from cyber security incidents.
Australian Information Commissioner and Privacy Commissioner Angelene Falk urged ‘all organisations to review their personal information handling practices and areas of ongoing risk identified in [the] report’ continuing that, ‘[o]rganisations should also ensure they have a robust data breach response plan’ which would allow them to ‘rapidly notify affected individuals to minimise the risk of harm’.
Click here for more information.
Parliament – Proposed increase of Commonwealth penalty unit
On 9 November 2022, the Crimes Amendment (Penalty Unit) Bill 2022 was introduced to the House of Representatives and received its second reading. According to the Explanatory Memorandum, this Bill proposes to increase ‘the amount of the Commonwealth penalty unit from $222 to $275, with effect from 1 January 2023’.
This measure was announced as part of the Federal Budget on 25 October 2022, as referred to in our Super Alert of 28 October 2022.
Click here for details.
Parliament – Privacy Legislation Amendment Bill progressed
On 8 November 2022, the Privacy Legislation Amendment (Enforcement and Other Measures) Bill 2022, was referred to the Legal and Constitutional Affairs Legislation Committee. The report is expected by 22 November 2022. See our 28 October 2022 and 4 November 2022 Super Alerts for more details on this Bill.
Click here for details.
APRA – Consultation on draft reporting standards
On 7 November 2022, APRA released a discussion paper and marked-up versions of nine reporting standards with proposed minor amendments after industry feedback was received earlier this year. These amendments relate to Phase 1 “Reporting” of the Superannuation Data Transformation (SDT) project. See our Super Alerts from 25 February 2022 and 2 September 2022 for details on the SDT project.
The nine reporting standards proposed to be amended are:
- SRS 1.01 Definitions for Superannuation Data collections;
- SRS 251.0 Insurance;
- SRS 332.0 Expenses;
- SRS 605.0 RSE Structure;
- SRS 606.0 RSE Profile;
- SRS 705.0 Components of Net Return;
- SRS 705.1 Investment Performance and Objectives;
- 706.0 Fees and Costs Disclosed;
- SRS 550.0 Asset Allocation.
Consultation will close on 2 December 2022. Click here for details.
AUSTRAC – Draft guidance released for consultation
On 3 November 2022, AUSTRAC released for consultation draft updated guidance on enhanced customer due diligence and employee due diligence and training. AUSTRAC reporting entities are required to have procedures detailing when and how they will conduct enhanced customer due diligence built into their AML/CTF programs, the draft guidance will update these existing requirements.
Consultation will close Thursday 15 December 2022.
Click here for details.
This alert was written by Kiara Leslie (Lawyer), Sanela Osmanovic (Senior Associate), and Natalie Cambrell (Director).
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