This alert was written by Kiara Leslie (Lawyer) and Natalie Cambrell (Director).
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Super Alert – 7 October 2022: APRA FAQs RE 2022 super heatmap, Downsizer contributions, ALRC Interim Report B tabled
Posted by Natalie Cambrell on 7 October 2022
Welcome to the latest issue of the KHQ Super Alert. This week, the regulations regarding eligibility to make downsizer contributions were registered, the ALRC financial services legislation Interim Report B was tabled in Parliament and APRA released some FAQs on the 2022 superannuation heatmap.
APRA – Update for APRA-regulated entities on planned changes to Telecommunications Regulations 2021
On 6 October 2022, APRA issued a media release announcing the Federal Government’s planned changes to the Telecommunications Regulations 2021 following the recent Optus data breach. The amendments are aimed at facilitating ‘closer coordination and a controlled process of data sharing’ between Optus and APRA-regulated entities.’
APRA outlined some key points of the planned amendments:
- ‘Any data shared can only be used for the purposes of implementing enhanced monitoring and safeguards for customers affected by the data breach.
- All APRA-regulated financial institutions, excluding branches of foreign banks, would be eligible to receive the data should they choose to.
- To opt in, entities will be required to provide written attestation to APRA Prudential Standard CPS 234 Information Security, in the context of accessing data from Optus associated with the recent breach.
- Entities will also need to provide written commitments to ACCC that they will comply with Privacy Act obligations.
- APRA, ACCC and relevant bodies are working closely to coordinate required steps.
- Once an entity has complied with these requests, it would work with Optus to facilitate access to the data.’
Click here for details.
APRA – Insights for the improvement of managing outsourcing arrangements
On 5 October 2022, APRA issued a publication offering insights formed throughout its review of 10 retail superannuation trustees and their management of outsourcing arrangements. The review, conducted between February 2019 and October 2021, covered four key service areas across ‘administration, financial advice, investment management and insurance‘.
‘APRA’s key observations focus on three areas:
- Trustees’ assessment of service providers’ value-for-money;
- Trustees’ measurement and monitoring of service providers’ performance; and
- Trustees’ oversight of service providers.’
‘The findings from this thematic review will also inform the evolution of the prudential standards and guidance’, including CPS 230 Operational Risk Management, which APRA recently released for consultation (see our Super Alert from 29 July 2022).
Click here and here for details.
APRA – Updated superannuation heatmap FAQs
On 5 October 2022, APRA released its updated frequently asked questions for the 2022 superannuation heatmaps.
Click here for details.
Legislation – Regulations amending eligibility for funds to receive downsizer contributions finalised
On 30 September 2022, the Superannuation Legislation Amendment (Broadening Contribution Rules) Regulations 2022 were registered on the Federal Register of Legislation. This instrument amends the Retirement Savings Accounts Regulations 1997 and the Superannuation Industry (Supervision) Regulations 1994 by lowering the age from which members are eligible to make downsizer contributions; enabling superannuation funds and Retirement Savings Account institutions to accept downsizer contributions for people who are aged 55 years and over.
Click here for details.
Australian Law Reform Commission – Financial Services Legislation Review
On 30 September, the Australian Law Reform Commission (ALRC) report Financial Services Legislation: Interim Report B was tabled in Parliament. See our Super Alert 3 December 2021 for details on Interim Report A. Interim Report B contains recommendations relating to ‘technical improvements that would simplify corporations and financial services legislation’ and may be implemented prior to the inquiry concluding (if accepted by the Australian Government).
The report also contains proposals and questions in relation to the reform of corporations and financial services legislation. The ALRC is seeking written submissions on these proposals and questions from stakeholders, which ‘will form part of the evidentiary basis of a further Interim Report and the Final Report.’
Consultation will close on 30 November 2022.
Click here for details.