Super Alert – 21 November 2025: APRA System Risk Outlook, ASIC extends existing relief for RSE licensees re disclosure obligations

Welcome to the weekly KHQ Super Alert. This week, APRA released its first ‘System Risk Outlook’ report and commenced consultation for an exemption to the controlling stake rules in the SIS Act. ASIC also extended existing relief for RSE licensees relating to disclosure obligations.  

APRA – First financial system outlook report released

On 20 November 2025, APRA published its ‘System Risk Outlook’ report which sets out its ‘assessment of risks and vulnerabilities facing the Australian financial system’. APRA is proposing to publish this report twice a year going forward.

APRA has made the following comments in the first report:

• ‘The increasing interconnectedness of the financial system has elevated the potential for shocks in one sector to have a system-wide impact.’
• In relation to APRA’s inaugural system risk stress test, APRA found that ‘the structural features of super funds mean that the industry acts as an important stabiliser for the system during stress but, in some cases, their actions can also amplify the negative effect of the shock on members and the system’.

Click here for details.

Legislation – Exemption from disclosure obligations extended

On 19 November 2025, the ASIC Superannuation (Amendment) Instrument 2025/449 was registered on the Federal Register of Legislation. According to the Explanatory Statement, the Instrument extends the existing relief which is in the ASIC Superannuation (Disclosure and Reporting Consistency Obligations) Instrument 2023/941.

Relief is provided for RSE licensees from the need to comply with the obligation in section 29QC of the SIS Act to provide consistent information to both APRA and other persons. The relief is provided ‘because of uncertainty about how to achieve consistency between the disclosure requirements in the primary legislation and the data that is required to be reported under APRA’s reporting standards’.

The relief was set to expire on 1 January 2026 and has now been extended to 1 January 2029.

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Senate – Committee recommends Bill relating to various financial services matters is passed

On 19 November 2025, the Senate Economics Legislation Committee released its report in relation to the Treasury Laws Amendment (Strengthening Financial Systems and Other Measures) Bill 2025 (Cth). As referred to in our Super Alert of 5 September 2025, this Bill proposes to make ‘administrative’ changes to the Corporations Act 2001 (Cth) and also to amend the Financial Regulator Assessment Authority Act 2021 (Cth) to reduce the frequency of the Financial Regulator Assessment Authority’s reviews of ASIC and APRA. The Committee recommended that the Bill be passed in its current form.

Click here for details.

APRA – Proposed class exemption for approval to own or control an RSE licensee

On 18 November 2025, APRA released a draft instrument that would exempt a class of persons from compliance with the change of ownership and control provisions of the SIS Act. Currently the change of ownership and control provisions ‘require persons to obtain approval from APRA to own or hold a controlling stake of more than 15 per cent in an RSE licensee’. Individuals with small stakes in RSE licensees are required to apply to APRA for approval to hold a controlling stake on the basis that APRA must assess the person’s stake aggregated with those of their associates, with that term having a wide meaning.

The proposed exemption would specifically ‘remove the requirement for management employees and company secretaries with a direct controlling interest in an RSE licensee of less than 2 [per cent] to apply to APRA before acquiring a controlling stake’.

The consultation period closes on 16 December 2025.

Click here for details.

ATO – Reporting error guidance released

On 18 November 2025, the ATO issued a media release outlining common errors in Member Account Attribute Service (MAAS) and Member Account Transaction Service (MATS) reporting. This follows guidance on the same topic released earlier in 2025.

The ATO identified the following as areas for improvement:

• reversionary account sequencing;
• TFN handling;
• timestamp accuracy;
• lodging MAAS before MATS information;
• correct use of Transfer Balance Account Report commutation authorities;
• avoiding fictitious accounts; and
• preparing for annual deadlines.

Click here for details.

SA Supreme Court – Application to amend trust deed to charge a trustee fee

On 17 November 2025, the Supreme Court of South Australia handed down its decision in the matter of Ness Super Pty Ltd v De Vries [2025] SASC 188. The Court considered an application by the trustee to vary the fund’s trust deed in order to ‘authorise the payment to the Trustee of a fee…to enable the Trustee to address the risk of the Trustee becoming insolvent should it be liable to a penalty in respect of which it has no right of indemnity against the assets of the Fund’.

The Court was satisfied that the existing protections against insolvency contained in the fund’s trust deed were insufficient. Accordingly, the Court made an order permitting the trust deed to be amended as proposed and held that the proposed amendments to permit payment of a fee to the trustee were in the best interests of members. That finding was made on the basis that ‘the prospect and actuality of the insolvency of the Trustee would likely be to the significant disadvantage of members’.

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Legislation – Privacy regulations registered

On 14 November 2025, the Privacy Regulations 2025 (Cth) were registered on the Federal Register of Legislation. The regulations replace the Privacy Regulation 2013, and prescribe various technical matters for the purpose of the Australian Privacy Principles. For example, the regulations prescribe that certain ‘superannuation organisations may adopt, or use and disclose, Commonwealth employee payroll numbers for superannuation purposes’.

Click here for details.

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