Super Alert – 20 June 2025: ASIC infringement notices, ATO updates, amended Victorian Crimes Act

Welcome to the weekly KHQ Super Alert. There was a broad array of developments this week. ASIC gave infringement notices to a fund for misleading investment statements and updated some Regulatory Guides, the ATO issued a number of updates, APRA published two speeches and the Victorian Crimes Act has been amended. 

ASIC – infringement notices issued for misleading investment statements

On 19 June 2025, ASIC issued a media release announcing that a fund ‘has paid $56,340 to comply with three infringement notices issued by ASIC in which ASIC alleged that a fund made misleading statements about the fund’s investments’.

Click here for details.

ATO – Engage with your stakeholders during successor funds transfers (SFTs)

On 19 June 2025, the ATO issued a news release in relation to trustees engaging with their members, employers and gateways early for a smooth transition during SFTs.

The ATO has advised that ‘[d]uring an SFT:

• Consider the SuperStream Data and Payment Standards requirements.
• Plan for availability of a fund Unique superannuation identifier (USI) through the SFT process.
• Any limited-service period should prioritise minimal impact to employers and members. Black-out periods around quarterly super guarantee dates have adverse impacts for employers.
• Notify members, employers, administrators, gateway operators, clearing houses and other service providers.
• Discuss any applicable limitations and have ongoing discussions including solutions such as catch and hold.
• Ensure all intermediaries have their access updated.’

Click here for details.

Crimes Act – legislative fix in Victoria

On 18 June 2025, the Justice Legislation Amendment (Miscellaneous) Act 2025 (Vic) received Royal Assent. It amends section 180 of the Crimes Act 1958 (Vic).

Of relevance to trustees undertaking a successor fund transfer or replacement of trustee, according to the Explanatory Memorandum Part 2 of the Act ‘substitutes section 180 of the Crimes Act 1958 to narrow the provision relating to secret commissions for trustees in return for appointing a replacement trustee so that it only captures conduct done with a dishonest or otherwise corrupt purpose’.

Click here for details.

APRA – Chair John Lonsdale’s speech

On 18 June 2025, APRA’s Chair John Lonsdale gave some opening remarks to the Business Council of Australia boardroom lunch.

Among other matters, he noted that superannuation fund trustees should expect continued scrutiny and higher expectations around non-financial risks, especially given recent security incidents: ‘…we [should] reflect on the public alarm just weeks ago as news emerged that criminal elements had breached multiple superannuation funds. APRA has since responded by lifting our requirements around information security and the implementation of robust authentication controls, noting that “the safety and security of members’ retirement savings and member data is non-negotiable”’.

Click here for details.

ATO – website update on relaxed commutation rules for legacy retirement products

On 18 June 2025, the ATO issued an explanation of the changes which commenced on 7 December 2024 to relax commutation restrictions for certain legacy retirement income stream products.

The ATO webpage explains as follows:

• ‘Treasury Laws Amendment (Legacy Retirement Product Commutations and Reserves) Regulations 2024 (the Regulation) temporarily relaxes commutation restrictions for certain retirement income stream products (known as legacy retirement products).
• Before 7 December 2024, providers of certain legacy retirement products had to ensure that those products could not be commuted under the relevant fund rules, contract, or terms and conditions of the product (the fund or product rules), except in limited circumstances.
• The Regulation relaxes this restriction so that the relevant fund or product rules can also allow the products to be fully commuted within the 5-year period beginning on 7 December 2024 and ending on 6 December 2029.’

Click here for details

ATO – website update on changes to reserve allocations

On 18 June 2025, the ATO issued an explanation of the way in which allocations from reserves count towards an individual’s contribution caps changed from 7 December 2024 as a result of the Treasury Laws Amendment (Legacy Retirement Product Commutations and Reserves) Regulations 2024.

Click here for details.

APRA – Executive Director of Cross-industry speech on operational resilience

On 18 June 2025, APRA’s Executive Director of Cross-industry Chris Gower gave a speech to the Australian Finance Industry Association’s Risk Summit 2025 entitled ’Preparing for the long haul: operational resilience in a shifting geopolitical environment’.

Operational resilience was a key focus of the speech, during which Mr Gower highlighted ’three converging risks in the operating environment’ for financial services entities:

• ‘Firstly – technology continues to become deeply integrated into every aspect of our financial system. With this integration comes a growing operational dependence on that technology and, with that, vulnerability to cyber-attacks and other operational disruption.
• Secondly – reliance on third parties to provide critical operations and technology continues to increase and, with this reliance, comes exposure to disruption from entities outside the financial system, including overseas-based service providers.
• Thirdly – shifts in the geopolitical environment are likely to amplify risks to the financial system, including risks posed by cyber-attacks and third-party service providers, as well as risks from other sources, such as personnel risks associated with bad actors.’

Click here for details.

ASIC – Updated and reissued Regulatory Guides

On 16 June 2025, ASIC issued the following list of updated or reissued Regulatory Guides (RGs). ASIC’s regulatory tracker update webpage states that the updated guidance has been issued ‘to help AFS licence applicants submit applications and make notifications to ASIC using ASIC’s new digital portal.’

It also notes that two regulatory guides have been withdrawn ‘because the content has been integrated into RG 1 and the ASIC Regulatory Portal’ (these withdrawn RGs being RG 2 AFS Licensing Kit: Part 2 – Preparing your AFS licence or variation application and RG 3 AFS Licensing Kit: Part 3 – Preparing your additional proofs).

Some of the key reissued or updated RGs are as follows:

• RG 1 Applying for and varying an AFS licence (reissued)
• RG 105 AFS licensing: Organisational competence (updated)
• RG 121 Doing financial services business in Australia (updated)
• RG 131 Funds management: Establishing and registering a fund (updated)
• RG 148 Platforms that are managed investment schemes and nominee and custody services (updated)
• RG 166 AFS licensing: Financial requirements (updated)
• INFO 86 How do RSE and AFS licensing application processes work together? (reissued)
• INFO 251 AFS licensing requirement for trustees of unregistered managed investment schemes (reissued)
• INFO 253 Claims handling and settling: How to comply with your AFS licence obligations (reissued)

Click here and here for details.

ATO – Check member contributions for accuracy

On 16 June 2025, the ATO issued a news release in relation to Member Account Transaction Service (MATS) reporting, particularly as the end of the financial year approaches.

The ATO has advised that ‘[m]any of our processes use the type and amount of contributions you report through MATS, and we also display this information in ATO Online. As automated processing increases, we have fewer opportunities to help you fix reporting errors before we use the data to assess members against contribution caps and other measures.’

Click here for details.

ATO – Improvements to SuperStream standard and Fund Validation Service (FVS)

On 13 June 2025, the ATO issued a news release in relation to funds, and their service providers, needing to review improvements to the SuperStream standard and FVS technical and business guidance documents with advice to be ready by 1 July 2026.

The ATO has advised that the ’[k]ey changes include:

• updates to FVS to give greater visibility and traceability on fund mergers, track closed Unique Superannuation Identifiers (USIs), and help employers and funds better resolve errors with SuperStream data and payments
• improved SuperStream contributions processes to clarify error messages for employers, explaining why a fund rejected a contribution
• faster payments on the New Payments Platform will no longer require bi-lateral agreement and will become an approved payment method
• a new SuperStream message for employers to confirm an employee’s super fund will accept contributions.’

Click here for details.

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