Welcome to the latest issue of the KHQ Super Alert, issued on Thursday this week because of Victoria’s public holiday tomorrow. APRA released a number of new data reporting standards and announced that the finalised standard and guidance in relation to insurance in superannuation is likely to be released in the coming months. Meanwhile, ASIC released an information sheet on DDO for advice licensees and financial advisers.
ATO – Process for member reporting obligation deferrals
On 21 September 2021, the ATO published additional information in relation to its ‘discretion to grant a deferral of [each fund’s member] reporting obligations where it is fair and reasonable to do so’. The ATO has explained that deferrals are only available for certain types of ‘member accounts, attributes, member transactions and contributions’. The ATO will ‘generally consider it fair and reasonable to grant a deferral to entities where the inability to lodge by the due date is reasonably attributed to exceptional or unforeseen circumstances’.
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APRA – Update in relation to proposed revisions to SPS 250 Insurance in Superannuation
On 21 September 2021, APRA released a letter sent to trustees which provides ‘an update to its proposed revisions to Prudential Standard SPS 250 Insurance in Superannuation (SPS 250) and Prudential Practice Guide SPG 250 Insurance in Superannuation (SPG 250)’. According to APRA, these revisions ‘are an important step in ensuring RSE licensees meet their obligations to prudently select, monitor and manage insurers’. APRA also indicated that ‘[the] amendments are consistent with the sharper focus of the new best financial interests duty, and the reverse evidential burden of proof, recently implemented as part of the Government’s Your Future, Your Super reforms’.
The final form standard and guidance are scheduled to be released in the coming months. APRA’s current intention is for SPS 250 to come into effect from 1 July 2022.
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APRA – New data reporting standards
On 17 September 2021, APRA registered 10 Financial Sector (Collection of Data) reporting standards, ‘developed under the first phase of its multi-year Superannuation Data Transformation’ project. According to APRA, the reporting standards ‘will significantly enhance the data reported to APRA by superannuation trustees’ by ‘expanding the collection to include all products and investment options, improved data on performance, fees and costs, asset allocation classifications, insurance arrangements, expenses and member demographics’.
Click here for details.
ASIC – Info Sheet on DDO
On 16 September 2021, ASIC released Information Sheet INFO 264 which ‘summarises some of the most relevant guidance in RG 274 for advice licensees and financial advisers’. ASIC states that it ‘explains how the design and distribution obligations for issuers and distributors of financial products in Part 7.8A of the Corporations Act 2001 … apply to advice licensees and financial advisers when providing personal advice’.
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