Super Alert – 27 June 2025: CPS 230 notification forms, exemptions for ASIC breach reporting, APRA expenditure practices review

Welcome to the weekly KHQ Super Alert. This week, further exemptions were introduced for the ASIC breach reporting rules and APRA released three CPS 230 notification forms, issued its quarterly industry statistics which now include retirement products and a letter to RSEs about expenditure.  The ATO has also updated its website in relation to reporting defined benefits for super fund transfers.

APRA – CPS 230 forms released

On 27 June 2025, APRA released three new electronic forms for entities to complete when notifying APRA in relation to various matters under CPS 230 Operational Risk Management. CPS 230 comes into effect on 1 July.

The following forms have been released:

• Operational Risk Incident form – to notify APRA as soon as possible, and not later than 72 hours, after becoming aware of an operational risk incident that an entity determines to be likely to have a material financial impact or a material impact on the ability of the entity to maintain its critical operations;
• Breach of Critical Operation Tolerance form – to notify APRA as soon as possible, and not later than 24 hours after, if an entity has suffered a disruption to a critical operation outside tolerance; and
• New or change to a material arrangement and/or offshoring form – to notify APRA:
  • as soon as possible and not more than 20 business days after entering into or materially changing an agreement for the provision of a service on which the entity relies to undertake a critical operation; and
  • prior to entering into any material offshoring arrangement, or when there is a significant change proposed to the arrangement.

Click here for details.

Legislation – Further changes made to ASIC breach reporting rules

On 26 June 2025, the ASIC Corporations and Credit (Amendment) Instrument 2025/289 (Cth) was registered on the Federal Register of Legislation. According to the Explanatory Statement, the instrument amends the breach reporting rules to ASIC to:

• ‘expand the types of reportable situations that are exempt from being reported to ASIC’ – if a reportable breach involves misleading and deceptive conduct, is rectified within 60 days, impacts less than 10 consumers and the total loss is less than $1,000, then it will no longer be reportable to ASIC;
• ‘extend the allowable length of an investigation before it must be reported to ASIC from 30 days to 60 days’; and
• ‘clarify the requirements for entities that report to APRA’ – if an entity has lodged a breach report to APRA about the same situation, a breach report is no longer required to be lodged with ASIC even if the information requested does not exactly align with ASIC’s breach reporting form.

ASIC notes that it continues to receive large volumes of breach reports ‘that have limited intelligence value’. It hopes that these changes will address this concern.

Click here for details. 

APRA – 2025 Stakeholder Survey

On 26 June 2025, APRA issued a media release in relation to the 2025 Stakeholder Survey results. According to APRA, ‘the results of its latest stakeholder survey [show] 97 per cent of banks, insurers and superannuation trustees surveyed believe APRA’s supervision benefits their industries.’

The media release also reports the following key findings:

• ‘93 per cent of respondents said APRA’s supervision enhanced the financial and operational strength of their organisation;
• 96 per cent said APRA’s supervision had a positive impact on their risk management practices;
• 82 per cent said APRA’s prudential requirements had a positive impact on their financial management; and
• 74 per cent believed APRA provided sufficient opportunity for consultation with industry on proposed changes to prudential standards or guidance.’

Click here for details.

APRA – Quarterly industry statistics published

On 26 June 2025, APRA released the quarterly superannuation industry publication, the quarterly superannuation product statistics and the quarterly fund-level statistics for the quarter ending March 2025. In an associated media release, APRA explained that the publication includes data on superannuation retirement products for the first time.

According to APRA, the publication ‘captures key performance data for 600 multi-sector investment options where the trustee sets the investment strategy or manages the investments. The key data includes a breakdown of product fee structures, investment strategies and associated strategic asset allocations.’

Some key statistics include that as at 31 March 2025:

• there were 54 MySuper products, 445 accumulation choice products, 119 transition to retirement products and 212 retirement products;
• there were 15 million MySuper member accounts; and
• the average member account balance had increased to $71,000 for MySuper products, $132,000 for accumulation choice products, and $362,000 for retirement products (excluding transition to retirement).

Click here for details.

APRA – Letter to RSEs about superannuation expenditure

On 24 June 2025, APRA issued a media release in relation to a letter to Registrable Superannuation Entity licensees setting out initial observations, examples of better practice, and areas for improvement to support compliance with legal duties and to achieve better outcomes for members when it comes to superannuation expenditure.

APRA observed areas for improvement across decision-making, expenditure management frameworks and monitoring and reporting.

Click here for details.

ATO – website update on defined benefits for super fund transfers

On 23 June 2025, the ATO updated its website in relation to how to re-report and transfer information for notional tax contributions and Div 293 deferred debts for members.

Click here for details.

Case – Claim against trustee brought by declared bankrupt

On 11 June 2025, the Federal Circuit and Family Court of Australia handed down its judgment in Shaw v NM Superannuation Pty Ltd (AMP) (No 2) [2025] FedCFamC2G 887. The applicant was unrepresented and had sought a refund of fees charged by a superannuation trustee in relation to his insurance cover, dating back to 2010. The superannuation trustee requested that the matter be dismissed because the limitation period for the applicant’s cause of action had expired, and the applicant was declared bankrupt so his cause of action vested in the applicant’s trustee in bankruptcy.

The Court agreed with the superannuation trustee on both matters. It noted that ‘[t]he applicant’s right of action/chose in action was to be distinguished from the subject matter of the right of action which, for present purposes, was assumed to be an interest in a regulated superannuation fund. That any interest of the applicant in a regulated superannuation fund may not have been property divisible amongst the creditors of the applicant was irrelevant’. Accordingly, the applicant was prevented by the Bankruptcy Act from bring the claim in the first place.

Click here for details.

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