ASFA Action Issue 963, 10 September 2024
In this issue:
- New and updated AFCA approaches impacting superannuation: consultation
- Minor amendments to the prudential framework: consultation
- Bills update
New and updated AFCA approaches impacting superannuation: consultation
The Australian Financial Complaints Authority (AFCA) has released for consultation drafts of one new and one updated Approach to specific types of complaints relating to its superannuation jurisdiction.
AFCA Approach documents support consumers and financial firms’ understanding of AFCA’s approach to certain issues and how it reaches decisions. The Approach documents provide practical information on how AFCA will assess and determine complaints and enhance AFCA’s transparency, consistency, and efficiency.
As foreshadowed earlier this year (see ASFA Action issue 957), AFCA has released:
- a draft of a new Approach dealing with complaints that invoke subsections 29(6) and (7) of the Insurance Contracts Act 1984. Those subsections address the remedies available to an insurer where there has been a misstatement or non-disclosure by the insured that would have affected the insurer’s decision to cover the risk, or the terms of the insurance.
- A draft update to the existing Approach to delayed insurance claims in superannuation. AFCA notes that it has made minor clarifying updates that are not intended to reflect any change to the substance of AFCA’s existing Approach.
If you have any feedback you would like ASFA to consider in relation to the draft Approach documents, please forward it to Julia Stannard by close of business Friday 20 September.
During 2024-25, AFCA also intends to consult on an update to its existing Approach to superannuation death benefits.
Minor amendments to the prudential framework: consultation
APRA is consulting on proposed minor updates to several prudential standards applicable to ADIs, general and life insurers and registrable superannuation entities (RSEs).
The only standard proposed to be amended that is relevant to RSEs is CPS 511 Remuneration, to:
- include statements relating to remuneration requirements under the Financial Accountability Regime
- update references to other standards
- address minor typographical errors.
If you have any feedback you would like ASFA to consider in relation to the draft Approach documents, please forward it to Fiona Galbraith by close of business Friday 27 September.
The House of Representatives has agreed to amendments made by the Senate to the Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Bill 2024, and the Bill now awaits Royal Assent.
The Bill sets out mandatory requirements for large businesses and financial institutions – including superannuation funds – to make disclosures relating to climate in accordance with sustainability standards made by the Australian Accounting Standards Board. The requirements will be phased in, with registrable superannuation entities with assets of $5 billion or more required to prepare sustainability reports for financial years commencing from 1 July 2026. (See ASFA Action issue 940 for background.)
The amendments made the Senate primarily related to other aspects of the Bill. The sole amendment to the climate-related disclosure provisions relates to the use of global average temperature increase scenarios.
ASFA REGULATORY WATCHLIST
ASFA’s Regulatory Watchlist (ARW) tracks developments in Legislation, inquiries, consultations
and other regulatory announcements relevant to superannuation.
