Welcome to the latest issue of the KHQ Super Alert. This week, APRA released the June quarter superannuation statistics and the NSW Parliament has introduced legislation aimed at resolving the Crimes Act issue in that jurisdiction relating to giving and receiving indemnities in the context of a successor fund transfer or trustee replacement.
APRA – Speech in relation to operational resilience
On 23 August 2023, APRA published a speech given by APRA Member Therese McCarthy Hockey focusing on the evolution and increasing importance of operational risk and resilience, particularly as it relates to information security.
In the speech, Ms McCarthy Hockey said, ‘APRA has…observed a long period of insufficient investment in both cyber security technology and personnel with the necessary skills and experience’. APRA’s view is that ‘boards need to become much more tech savvy and alert to how the threats have changed, in particular for the data they collect and manage. Boards need to provide stronger oversight of these “crown jewels” in order to address threats as they emerge with the expediency they deserve’.
Ms McCarthy Hockey then relayed APRA’s expectations in relation to entities implementing prudential standard CPS 230 Operational Risk Management (CPS 230) saying that prudent boards should be thinking about how to meet their new commitments now as APRA ‘will be assessing entities’ preparedness for the new standard throughout 2024’.
APRA also expects boards to ensure there is ‘robust governance over the change management process to successfully implement the requirements of [CPS 230]’, and entities should ensure they have ‘an end-to-end view of operational risk, with a focus on critical operations, including those performed by third and fourth parties’.
Click here for details.
NSW Parliament – Legislation introduced to resolve Crimes Act issue in SFTs
On 22 August 2023, the Crimes Amendment (Corrupt Benefits for Trustees) Bill 2023 (NSW) (Bill) was introduced to the NSW Legislative Assembly. This Bill seeks to resolve whether section 249E of the Crimes Act 1900 (NSW) is enlivened when giving and receiving indemnities as part of a successor fund transfer or trustee replacement, which has been the subject of numerous Supreme Court applications in various jurisdictions over the last 18 months (see our Super Alerts from 30 June 2023, 2 June 2023, 18 November 2022, 21 October 2022, and 20 May 2022).
According to the Explanatory Notes, the object of the Bill is to:
- amend section 249E so that it:
- specifies ‘that the offering, giving, receiving or soliciting of the benefit must be corrupt’; and
- excludes ‘the requirement to obtain the consent of each person beneficially entitled to the property or the Supreme Court in certain circumstances’; and
- excludes ‘the requirement for the Attorney General’s consent to commence proceedings for an offence under the section’; and
- ‘provide…that section 249E, as in force before its substitution, no longer applies to conduct that occurred before the commencement’.
Click here for details.
APRA – June 2023 quarterly superannuation statistics
On 22 August 2023, APRA released the June 2023 iteration of the quarterly superannuation statistics. From June 2022 to June 2023, some key superannuation statistics include:
- a 7.6% increase in total superannuation assets over the year ($3.29 trillion to $3.54 trillion);
- a 12.9% increase in total contributions during the year; and
- benefit payments increased by 19.6% over the year, reaching $1.02 trillion.
Click here and here for details.
This alert was written by Kiara Leslie (Lawyer), Sanela Osmanovic (Senior Associate), and Natalie Cambrell (Director).
Want KHQ Super Alerts delivered straight to your inbox each week? Click here to subscribe.
