Issue 978
In this issue:
ASFA Service Standards Reporting Working Group
ASFA is forming a Service Standards Reporting (SSR) Working Group with the aim of designing and developing an initiative for funds to self-report on service standards across the superannuation sector.
The initial meeting is scheduled for Wednesday 22 January 2025 at 3.00 pm AEDT and will be conducted online via Microsoft Teams.
If you would like to nominate a representative from your organisation to participate in the SSR Working Group please provide Fiona Galbraith with their email address. Member organisations may have more than one representative attend the initial meeting however we may, depending on the level of interest, limit the number of participants from each organisation going forward, to ensure the Working Group operates effectively.
Regulatory Initiatives Grid
As foreshadowed last March (see ASFA Action issue 937), the Government has now launched the first edition of the ‘Regulatory Initiatives Grid’ (RIG).
The RIG is a tool to better streamline and coordinate regulation in the financial sector, intended to provide clear visibility of regulatory changes that will materially affect financial service providers over the next two years. According to the Government, it will help regulators avoid duplication and help improve the sequencing and implementation of reforms.
The RIG houses a forward program of key initiatives from agencies including ASIC, APRA and the ATO. It will be updated twice a year and include information from a range of financial sector regulators. To incorporate feedback on this first edition, the second edition of the RIG will be published in the second half of 2025.
Some notable points from the first edition of the RIG:
- Payday superannuation – consultation on exposure draft legislation is scheduled for Q1 2025
- Delivering Better Financial Outcomes – consultation on exposure draft legislation for tranche 2 is scheduled for Q1 2025
- Enabling victims and survivors of child sexual abuse to access offenders’ superannuation – no timing is indicated for legislation to give effect to this announcement from the 2023-24 Mid-Year Economic and Fiscal Outlook statement
- APRA’s planned system-wide stress test “to understand resilience and risk across the financial system” is now scheduled to commence Q2 2025
- APRA’s cross-industry review of prudential standards on governance – for superannuation, covering SPS 510 Governance – has now been explicitly extended to also cover SPS 520 Fit and Proper and SPS 521 Conflicts of Interest. A discussion paper is scheduled for consultation in Q1 2025, with consultation on draft standards to occur in Q4 2025 and updated standards to be issued H1 2026
- APRA will consult on amendments to CPS 220 Risk Management to embed climate-related financial risk considerations more clearly – consultation is likely in Q2 2025, with the updated standard to be issued Q4 2025 for commencement in H2 2026
- APRA will review the asset thresholds for significant financial institutions (SFIs) to ensure they remain appropriate – consultation is scheduled for Q1 2005, with the prudential standards to be updated in Q4 2025 for commencement in H1 2026
- ASIC will review a sample of superannuation trustees’ retirement focused communications with their members, including decision-making processes and guidance tools, with data collection to occur in Q1 2025, consultation with stakeholders to occur in Q2 and a report to be published in Q3
- ASIC has confirmed it will publish the report from its review of death benefit claims handling practices in Q1 2025 and indicated it will undertake data collection (presumably to assess progress on implementing identified improvements) in Q3 2025
- More detail has been provided on the likely timing for previously announced updates to ASIC Regulatory Guides:
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- Regulatory Guide 53 The use of past performance in promotional material – consultation will commence Q4 2025, with the updated guidance to be published H1 2026
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- Regulatory Guide 168 Disclosure: Product Disclosure Statements (and other disclosure obligations) – consultation will commence Q2 2025, with the updated guidance to be published Q4 2025
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- Regulatory Guide 181 Licensing: Managing conflicts of interest – consultation will commence Q3 2025, with the updated guidance to be published H1 2026
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- Regulatory Guide 183 Approval of financial services codes of conduct – consultation will commence Q3 2025, with the updated guidance to be published H1 2026
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- Regulatory Guide 234 Advertising financial products and services (including credit): Good practice guidance– consultation will commence Q4 2025, with the updated guidance to be published H1 2026.
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- Regulatory Guide 34 Auditor’s obligations: Reporting to ASIC and Regulatory Guide 43 Financial reports and audit relief – guidance material will be finalised in Q1 2025.
- Sustainable investment product labels – the Government will establish consistent labels and disclosure requirements for investment products marketed as ‘sustainable’ or similar, including for managed funds and within the superannuation system. Consultation will occur in Q1 2025 with a target commencement date of 2027 “subject to final policy decisions”.
ASFA REGULATORY WATCHLIST
ASFA’s Regulatory Watchlist (ARW) tracks developments in Legislation, inquiries, consultations
and other regulatory announcements relevant to superannuation.
