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Issue 826, 28 September 2021 
In this issue: 

 

Retirement income covenant: consultation on draft legislation 

Treasury has released exposure draft legislation to introduce a retirement income covenant for superannuation trustees, as proposed by the Government in its 2018-19 Budget. 

The Government intends that the retirement income covenant will support retirees to have the confidence to spend their hard-earned savings, while enabling choice and competition in the retirement phase of superannuation. 

The draft legislation proposes to codify the obligation for superannuation trustees to have a retirement income strategy that outlines how they plan to assist their members in retirement. The strategy must consider how the trustee will assist their members to balance maximising their retirement income, managing risks, and have some flexible access to savings. 

This exposure draft reflects the feedback received in response to the position paper released in July (see ASFA Action issues 814, 671 and 669 for background in relation to the covenant). 

Subject to the passage of legislation, the covenant will take effect from 1 July 2022. 

If you have any feedback you would like ASFA to consider in relation to the draft legislation, please forward it to Fiona Galbraith by close of business Friday 8 October. 

 

Treasury portfolio laws: miscellaneous amendments consultation 

Treasury has released a package of draft legislation and regulations that propose amendments to a range of Treasury portfolio laws, including several amendments relevant to superannuation. 

The proposed measures affect topics, including: 

 If you have any feedback you would like ASFA to consider in relation to the consultation package, please forward it to Fiona Galbraith by close of business Friday 8 October. 

 

APRA Superannuation Data Transformation: lodgement extension and FAQs 

As reported in recent ASFA Actions, APRA has finalised ten data reporting standards under phase 1 of its multi-year Superannuation Data Transformation (SDT) project and has been publishing frequently asked questions (FAQs) about the new reporting requirements. 

ASFA understands that APRA yesterday communicated to registrable superannuation entity (RSE) licensees regarding the due date for lodgement of a number of the SDT reporting forms. In particular, APRA advised that in order to ensure licensees can submit quality data for the initial submissions, the due date for submission of data has been extended to 28 October 2021 for the following 12 SDT reporting forms that were previously due by 30 September: 

APRA has also provided an extension to the due date of any ad-hoc submissions and attestations of data on the SDT forms that are due prior to 28 October, so these will now be due by 28 October. 

RSE licensees that are in a position to submit data earlier are encouraged to do so. In particular, APRA encourages RSE licensees to submit data on these forms via APRA Connect with sufficient time to ensure that any submission issues can be resolved ahead of the revised due date. 

ASFA also understands that APRA has made changes to the APRA Connect artefacts to reflect the final reporting standards, therefore it is important for members to check the APRA Connect artefacts. These artefacts, along with the up-to-date data dictionary, validations, reporting taxonomy and XSD files (used to validate submissions uploaded to APRA Connect) are available on APRA’s website. 

APRA has also published additional FAQs to clarify reporting issues in relation to the SDT reporting standards, on 23 and 27 September. The former release included updates to the SRS 251.0 Insurance worked example, while the latter reflects the communication to RSE licensees regarding the lodgement extension. 

If ASFA members have any queries regarding the SDT reporting forms or the lodgement extension, these can be directed to DataAnalytics@apra.gov.au. 

 

APRA policy priorities updated 

APRA has issued an update to its policy priorities for the remainder of 2021. 

Of particular relevance to superannuation, the update indicates that: 

The update also indicates revised dates for cross-industry standards and guidance relevant (or potentially relevant) to superannuation, including: 

 

Competition in the funds management industry: research report 

ASIC has released a report on the state of competition in Australia’s funds management industry, based on research it commissioned from Deloitte Access Economics (Deloitte). The research examined competition between fund managers, with a focus on outcomes delivered to investors in retail managed investment products. 

Report 702 Competition in funds management contains the findings from the research, including: 

ASIC has indicated it will take these findings into account in its ongoing work to support effective competition in the funds management industry and to improve investor outcomes. 

 

 

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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