Welcome to the latest issue of the KHQ Super Alert which provides an overview of this week’s superannuation developments. This week, ASIC published its regular enforcement update, as well as guidance in relation to compliance with the new breach reporting obligations. APRA announced that its new data collection solution, APRA Connect will go live next week. The ATO provided an update on the stapled super fund front.
APRA – APRA CONNECT
On 9 September 2021, APRA confirmed ‘that the new data collection solution, APRA Connect, will go live on 13 September 2021’. To ensure they are ready for the launch, trustees ‘need to prepare for APRA Connect and nominate their Regulatory Reporting Administrator via the D2A form’.
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ASIC – ENFORCEMENT UPDATE
On 9 September 2021, ASIC issued its enforcement update which sets out ASIC’s enforcement related activities in relation to the first six months of 2021. According to ASIC, it ‘commenced 12 civil penalty proceedings during the period and commenced court action targeting misconduct in insurance, superannuation, markets, auditing and credit’.
The report notes two court actions that were commenced during the period in the ‘priority area’ of superannuation misconduct (see ASIC 21-034MR and 21-037MR). In terms of financial services enforcement outcomes in the period, it notes two respondents in the superannuation misconduct category, with one resulting in a civil remedy and one resulting in a criminal remedy (see table 1). In terms of financial services enforcement litigation in progress during the period, it notes eight respondents in the superannuation misconduct category where criminal remedies are being sought and five where civil remedies are being sought (see table 2).
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ASIC – GUIDANCE ON BREACH REPORTING
On 7 September 2021, ASIC issued a media release in relation to its ‘regulatory guidance to help credit and Australian Financial Services (AFS) licensees to meet new breach reporting obligations’. According to ASIC, the breach reporting reforms, which commence on 1 October 2021, ‘address long-standing concerns about breach reporting by making the reporting consistent, clearer and [more] timely across the industry’.
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ATO – FURTHER DETAILS FOR STAPLED FUND RULES
On 7 September 2021, the ATO issued a news release in relation to the stapled fund reforms. The ATO has advised that ‘from 1 November 2021, if an employer has new employees start and the employees do not choose a super fund’, then it may be incumbent on the employer ‘to request their new employees [sic] stapled super fund details’ from the ATO. The ATO has explained how stapled funds will be selected and the application of the rules to defined benefit funds.
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ATO – ADMINISTRATIVE ARRANGEMENTS FOR COVID-19 RE-CONTRIBUTION AMOUNTS
On 7 September 2021, the ATO issued CRT Alert 011/2021 in relation to administrative arrangements for COVID-19 re-contribution amounts. The ATO has advised that ‘individuals can now re-contribute amounts they withdrew under the COVID-19 early release of super (ERS) program without them counting towards their non-concessional cap’. Trustees can expect further details on how they can assist members with this process, once the ATO has settled on the precise system information required ‘to ensure the correct outcomes for members’.
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This alert was written by Natalie Cambrell (Principal Solicitor), Sanela Osmanovic (Senior Associate) and Jordan Diamantopoulos (Lawyer) of KHQ Lawyers.
