Welcome to the latest issue of the KHQ Super Alert. This week APRA released additional FAQs for its data transformation project and ASIC issued a reminder to licensees about the importance of implementing AFCA determinations.
APRA – Superannuation Data Transformation Updated FAQs
On 12 October 2022, APRA released additional frequently asked questions (FAQs) on the reporting standards for Phase 1 of the Superannuation Data Transformation project (SDT project).
The new questions are:
- ‘How should RSE licensees report ‘Insurance Cover Cost’ amount in SRF 251.3 table 2 column 10 where the default level of cover has been expressed as a percentage of salary?’;
- ‘How should RSE licensees report Separately Managed Accounts or other ‘Managed Discretionary Account Services’ (MDA) in SRS 550.0?’; and
- ‘How should RSE licensees report ‘Investment Option Name Text’ in SRF 605.0, table 3 column 3?’.
See our Super Alerts dated 25 February 2022 and 2 September 2022 for further information on the SDT project.
Click here for details.
APRA – Release of Chairman’s opening statement to the Standing Committee on Economics
On 11 October 2022, APRA released Chairman Wayne Byres’ Opening Statement to the House of Representatives Standing Committee on Economics. Among other things, the statement outlined the ‘key critical work streams’ APRA is working on to ‘ensure the ongoing stability and resilience of the Australian financial system.’ It highlighted that APRA and ASIC have been working together to ensure they are ready to ‘jointly administer’ the Financial Accountability Regime legislation.
Specifically related to superannuation, Mr Byres stated that APRA’s focus ‘continues to be on identifying and addressing fund underperformance, and ensuring trustees have an unwavering focus on the interests of their members.’ He also commented on the publication of the 2022 MySuper performance test results and the Your Future Your Super review currently underway.
Click here for details.
ASIC – Media release in relation to banning order for refusal to give effect to AFCA determinations
On 11 October 2022, ASIC issued a media release in relation to a banning order imposed on a financial services director. The order was imposed ‘after two companies of which he was a director refused or failed to give effect to determinations by the Australian Financial Complaints Authority’.
In particular, ASIC found that the director ‘approached AFCA determinations as if they were open to negotiation, including in some circumstances seeking to persuade complainants to accept less than the determination amounts’. ASIC has explained that ‘AFCA determinations are not opportunities for negotiation’ and financial firms ‘must make sure that their firms comply with AFCA determinations within the time specified’.
Click here for details.
Treasury – Release of Treasury Round Up 2022
On 7 October 2022, Treasury released the Treasury Round Up 2022 which looks at ‘a range of issues that affect productivity in the Australian economy’. This edition includes five articles:
- ‘Understanding productivity in Australia and the global slowdown’;
- ‘Competition in Australia and its impact on productivity growth’;
- ‘How dispersed are new technologies in the Australian job market’;
- ‘Why the real wages of graduates with bachelor’s degrees have fallen’; and
- ‘Children and the gender earnings gap’.
Click here for details.
This alert was written by Kiara Leslie (Lawyer), Sanela Osmanovic (Senior Associate), and Natalie Cambrell (Director).
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