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Issue 857, 28 June 2022 
In this issue: 

 

Superannuation Data Transformation Project: APRA FAQs 

APRA has published twelve new frequently asked questions (FAQs) and one updated FAQ on the reporting standards issued under phase 1 of its Superannuation Data Transformation (SDT) project. 

The new FAQs relate to:  

APRA has also updated Historical Data FAQ 1.0 to reflect a three-month extension to the due date for some types of investment options.  

 

Quality of Advice review: commitment by new Government 

The Minister for Financial Services, Stephen Jones MP, has confirmed the Government’s commitment to the Quality of Advice review and expressed his support for the Review continuing under its current terms of reference. 

The Review, established by the former Government, is due to provide its final report and recommendations by 16 December. (See ASFA Action issues 847, 845, 838 for background.) 

 

YFYS performance test: ASIC’s review of trustee communications 

ASIC  has released the findings from its recent review of superannuation trustees’ communications with their members following the first annual performance test for MySuper products. The test, introduced under the Your Future, Your Super (YFYS) reforms, measures the performance of MySuper products against prescribed benchmarks according to a trustee’s own strategic asset allocation. 

Report 729  Review of trustee communications about the MySuper performance test (REP 729) focuses on ASIC’s review of performance test communications by the 12 trustees of the 13 products that failed the test in 2021. 

According to ASIC, its review found that trustees whose products failed generally complied with the legal obligations to notify their members of the failed test and to disclose the failed test on their website. However, the communication strategies of some trustees may have risked confusing or misleading members about their product’s performance. ASIC identified some communication strategies of concern, for example: 

ASIC Commissioner Danielle Press said “For the 2022 performance test, we expect trustee communications to reflect our expectations for prominence, balance and clarity set out in REP 729, including where products fail for a second time. Where we see a need to, ASIC will take appropriate action to protect consumers.” 

Tax withholding schedules finalised 

The ATO has published the Taxation Administration Withholding Schedules 2022, which will apply from 1 July 2022. 

The explanatory material notes that only two schedules have been updated – Schedules 8 (Statement of formulas for calculating study and training support loans components) and 15 (Statement of formulas for calculating study and training support loans components). No changes have been made to the remaining schedules, including those that relate specifically to superannuation lump sums and income stream payments (Schedules 12 and 13). 

 

Tax withholding schedules finalised 

The ATO has published the Taxation Administration Withholding Schedules 2022, which will apply from 1 July 2022. 

The explanatory material notes that only two schedules have been updated – Schedules 8 (Statement of formulas for calculating study and training support loans components) and 15 (Statement of formulas for calculating study and training support loans components). No changes have been made to the remaining schedules, including those that relate specifically to superannuation lump sums and income stream payments (Schedules 12 and 13). 

 

Derivative transaction reporting: proposed ASIC rules 

As reported in ASFA Action 852, ASIC has published its second consultation paper on proposals to update the ASIC Derivative Transaction Rules (Reporting) 2013. ASIC has now added to the download section on the consultation webpage  marked-up comparison documents detailing the proposed changes to: 

ASIC has advised that the comparison documents do not prevail over the draft Rules published in Attachment 1 and Attachment 2 to Consultation Paper 361 Proposed changes to simplify the ASIC Derivative Transaction Rules (Reporting): Second consultation. In addition, an inadvertent removal of Rule 1.1.4 (Penalties) has been identified and noted at page 3 of each of the documents. 

 

 

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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