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Issue 772, 24 August 2020 
In this issue: 

 

COVID-19 Coronavirus: early release of super – APRA data 

APRA has made its seventeenth weekly publication of industry-level data from its early release initiative data collection. 

The data covers applications made from inception of the early release initiative on 20 April through to 16 August. 

The data shows that from 20 April to 16 August: 

An ‘initial’ application is the first application made in respect of a member account whether this occurred in the 2019-20 financial year application period or the 2020-21 financial year application period. A ‘repeat application’ is an application for a member account that previously submitted an initial application – all ‘repeat’ applications therefore relate to the 2020-21 financial year application period. 

APRA has also published the sixteenth tranche of fund-level statistics from its early release data collection, revealing the number and value of the payments processed by each fund, as well as the time taken to make payments. 

 

 

MySuper heatmap: APRA FAQs 

In late June, APRA published its first update to the MySuper product heatmap, to reflect changes in superannuation fees and costs since the heatmap was launched in December 2019. APRA also indicated it would be publishing a “complete refresh” of the heatmap later this year (see ASFA Action issue 762). 

APRA has now confirmed the release of a refreshed heatmap in December 2020 and published a set of frequently asked questions (FAQs) about the upcoming release. The FAQs indicate that: 

 

 

Super insurance premium increases in super: AFCA factsheet 

AFCA has published a factsheet for consumers about insurance premium increases within superannuation. 

The factsheet notes that AFCA’s power to consider complaints about premium increases is broadly limited to complaints about whether a premium increase was: 

The factsheet outlines how AFCA will consider each of the above factors. 

The factsheet also notes the impact of recent legislative changes on insurance premiums. It notes the following: 

The recent Protecting Your Super (PYS) and Putting Members’ Interests First (PMIF) changes have led to a decrease in the number of people who have insurance through their superannuation. This in turn has led to insurers reviewing their group insurance arrangements, including the premiums. 

For example, PYS changes introduced the requirement for insurance to be ‘opt in’ for inactive superannuation members. 

AFCA is receiving more complaints than usual about large insurance premium increases because of PYS changes, and PMIF changes might have the same impact. We think this increase in premiums is because the number of insured members is smaller (among whom risk can be spread) and not because of trustees failing to properly insure their members. This issue is affecting both industry and retail superannuation funds. 

 

 

Keeping super safe from cybersecurity threats: GNGB guide 

The Gateway Network Governance Body (GNGB) has released a guide to ‘keeping super safe’ during the COVID-19 pandemic. 

The GNGB is the body that manages the integrity, security and effectiveness of the Superannuation Transaction Network that helps superannuation funds and employers to meet their obligations under the SuperStream requirements. 

Following a recent roundtable on cybersecurity, the GNGB has released a brief guide highlighting: 

 

 

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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