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Issue 852, 17 May 2022 
In this issue: 

 

Assisting members who lack conventional forms of ID: AUSTRAC consultation Working Group 

AUSTRAC is seeking feedback on updated draft guidance to assist reporting entities to use a flexible approach to identify customers who don’t have conventional forms of identification. 

In 2016-17 AUSTRAC first published guidance on Identifying customers who don’t have conventional forms of ID.  AUSTRAC’s updated draft guidance: 

Customers that may be affected include: 

The consultation closes on 22 June. 

AUSTRAC has provided ASFA with a copy of the updated draft guidance and we are looking to form a Working Group to provide feedback on the draft guidance. It is anticipated that, due to the limited nature of the consultation, the Working Group will meet only once. 

If you would be interested in participating in the Working Group, please email Fiona Galbraith by close of business Friday 20 May. 

 

Derivative transaction reporting rules: ASIC consultation 

ASIC has published its second consultation paper on proposals to update the ASIC Derivative Transaction Rules (Reporting) 2013. 

ASIC’s webpage ASIC Consultation Paper 361 contains the consultation materials, including: 

An overview of the project, including the indicative timeline, is available on ASIC’s webpage: Upcoming Rules and Exemptions changes. 

The consultation closes on 8 July. If you are interested in engaging with ASIC on this matter, please contact them via otcd@asic.gov.au. 

 

2022 Election: superannuation policies 

As part of its 2022 Election campaign, the Government has announced it will, if re-elected, allow first home buyers to access their superannuation and reduce the eligibility age at which homeowners can ‘downsize’ and contribute proceeds to superannuation. 

Under the Super Home Buyer Scheme, first home buyers will be able to invest up to 40 per cent of their superannuation, up to a maximum of $50,000 to help with the purchase of their first home. The Scheme will apply to both new and existing homes with the invested amount to be returned to the individual’s superannuation fund when the house is sold, including a share of any capital gain. 

No income or property caps will apply under the Scheme however eligibility will be restricted to first homebuyers who must have separately saved five per cent of the deposit. It appears that the Scheme would apply in addition to the existing First Home Super Saver Scheme, and it would commence by 1 July 2023. 

The Government has also announced  that it will, if re-elected, reduce the age for the superannuation downsizer scheme to 55 years from 1 July 2022. The downsizer scheme allows eligible individuals to sell their home and contribute up to $300,000 into superannuation without impacting their contributions caps. The eligibility age is currently 65 years however it was due to reduce to 60 from 1 July 2022 under an announcement from last year’s Budget, which had already been legislated via the Treasury Laws Amendment (Enhancing Superannuation Outcomes For Australians and Helping Australian Businesses Invest) Act 2022  (see ASFA Action issue 841). 

The Government will also extend the time pensioners have to structure their assets following a sale of their family home, without impacting their pension, from one year currently to two years from 1 January 2023. 

The Opposition has indicated it will, if elected, match  the Government’s announcement in relation to the downsizer contribution but does not support the measure to allowing access to superannuation for a home purchase. 

Separately, the Prime Minister has indicated that the legislated increases to the Superannuation Guarantee contribution rate will continue if the Government is re-elected, saying: “we haven’t made any changes to that legislation and we stand by the legislation as set out”. 

 

Cybersecurity risks: ASIC’s expectations of AFS licensees 

ASIC has published an article on its website outlining its expectations of Australian Financial Services (AFS) licensees in relation to cybersecurity risks, following a recent court judgment. 

The article notes that the Federal Court found an AFS licensee to have breached its licence obligations by failing to do all things necessary to ensure the financial services covered by the licence were provided efficiently and fairly, and by failing to adequately manage its cybersecurity risks (ASIC v RI Advice Group Pty Ltd  [2022] FCA 496). 

ASIC has commented that: 

The article notes that while ASIC does not prescribe technical standards nor provide expert guidance on operational aspects of cybersecurity, or prescribe specific requirements for individual licence holders, it expects licensees to address cyber risk as part of their AFS licence obligations, including risk management. Dual regulated AFS licensees (such as registrable superannuation entity licensees) will also have obligations to comply with the standards of other regulators, such as APRA. 

 

Superannuation Data Transformation: APRA FAQs 

On 5 May, APRA published five new frequently asked questions (FAQs) in relation to the reporting standards issued under Phase 1 of its Superannuation Data Transformation project. 

The new FAQs are as follows: 

 

Annual member meeting notices: ASIC response to questions 

ASIC has provided ASFA with responses to two questions that have been raised with respect to annual member meeting (AMM) notices as follows: 

 

ASIC website: superannuation resources 

ASIC has identified several superannuation related resources on its website that may be of particular interest to ASFA members: 

In addition, other available resources include: 

 

 

ASFA REGULATORY WATCHLIST

ASFA’s Regulatory Watchlist (ARW) tracks developments in Legislation, inquiries, consultations

and other regulatory announcements relevant to superannuation.

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