Issue 853, 31 May 2022
In this issue:
APRA publishes updates to FAQS on the Superannuation Data Transformation project
APRA has updated two frequently asked questions (FAQs) on the Superannuation Data Transformation (SDT) reporting standards.
The two FAQs provide further guidance to RSE licensees on the reporting standards for Phase 1 of the SDT project, specifically in relation to the staged implementation and best endeavours approach to reporting under Reporting Standards
- SRS 550.0 Asset Allocation; and
- SRS 332.0 Expenses.
SRF 550 Asset Allocation
APRA will permit reporting for
- SRF 550.0 – Table 2
- SRF 550.1 – Table 1
to be performed on a best endeavours basis for certain asset class characteristics for periods
- ending on or after 30 June 2021; but
- before 30 June 2023.
SRF 332.0 Expenses
APRA will permit reporting to be performed on a best endeavours basis for each reporting period
- ending on or after 30 June 2021; but
- before 30 June 2023
except for the following expense types:
- Marketing related expenses (including advertising/marketing, existing member campaigns, member acquisition campaigns, and all expense types under marketing and distribution)
- Sponsorship
- Payments or donations to industry bodies
- Payments or donations to political parties; or
- Payments or donations to trade bodies.
Trustees must report
- the total expenses; and
- a service arrangement cost amount for each expense type for which a service is provided.
AFCA Funding Model Consultation Results
As reported in ASFA Action 845 AFCA consulted on its proposed new funding model, which will replace the current (interim) model.
Following the funding model consultation, AFCA has made changes to the model in response to stakeholder feedback, and the AFCA Board has now approved the model’s final design. The new funding model will come into effect on 1 July 2022.
AFCA has prepared a consultation report webpage which includes a summary of the feedback received and AFCA’s response, including the changes it has made to the model, the consultation report and the final model.
As a result of the feedback and concerns raised during the consultation, AFCA has made the following adjustments to the funding model:
- the proposed ‘rules fee’ will no longer be included in the new funding model
- to provide clarity, AFCA has published a guide to the user charge, proposed changes, and how it is calculated
- the calculation of the user charge will not include the complaints discounted by the funding model’s five free complaints in the previous year
- members with a user charge over a certain threshold will be able to opt-in to progressive invoicing over a financial year.
APRA releases superannuation statistics for March 2022
APRA has released its Quarterly Superannuation Performance publication and the Quarterly MySuper Statistics report for the March 2022 quarter.
Superannuation assets totalled over $3.4 trillion at the end of the March 2022. This represents a 9.7 per cent increase in the value of total superannuation assets over the past year, reflecting strong investment performance and positive contributions growth. The March 2022 quarter, however, reflects contributions beginning to revert to long-term trends and weaker investment performance, largely due to concerns over higher interest rates, with rising inflation, exacerbated by constrained supply chains, and the uncertainty brought about by the conflict in Ukraine.
ASFA REGULATORY WATCHLIST
ASFA’s Regulatory Watchlist (ARW) tracks developments in Legislation, inquiries, consultations
and other regulatory announcements relevant to superannuation.
