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Issue 812, 6 July 2021 
In this issue: 

 

Your Future, Your Super: Your Super comparison tool 

The ATO has launched the YourSuper comparison tool, to help consumers compare MySuper products and choose a superannuation fund. 

The comparison tool is a key element of the Government’s Your Future, Your Super reforms, which were recently passed by Parliament (see ASFA Action issue 810). The tool: 

The information displayed in the comparison tool is collated and supplied by APRA. From September 2021, the tool will show how APRA assessed the annual performance of each super fund. Until then, the reported ‘investment performance’ for all funds will show as ‘not assessed’. 

 

Oversight of advice fees charged to members’ accounts 

APRA and ASIC have written to superannuation trustees, outlining the regulators’ expectations for oversight of financial advice fees charged to superannuation members’ accounts. 

In 2019, the regulators wrote to trustees regarding their obligations in relation to the charging of advice fees to accounts, asking trustees to review their existing governance and assurance arrangements and address any issues (see ASFA Action issue 706). Subsequently, APRA and ASIC have engaged with trustees to understand the outcomes of their reviews and any actions taken as a result. 

The regulators have now outlined non-exhaustive guidance as “a further reference point for trustees in reviewing and improving their oversight framework and practices”. The letter notes that: 

The detailed guidance covers the meaning of ‘advice fees’ and specific issues for trustee decision-making, the assurance process and system functionality, including: 

The guidance concludes by noting that: 

APRA and ASIC have identified instances of financial adviser misconduct where failures in trustee oversight have enabled third parties to access superannuation monies to which they were not entitled. Action by ASIC against the financial adviser after the event is no substitute for appropriate risk management practices by trustees. 

 

APRA Super Data Transformation: FAQs 

As reported in recent ASFA Actions, APRA recently finalised ten reporting standards under phase 1 of its Superannuation Data Transformation project. APRA has been publishing frequently asked questions (FAQs) for registrable superannuation entity (RSE) licensees ahead of the first submission of data under the standards on 30 September. 

APRA has now published additional FAQs on the phase 1 standards, and updated the APRA Connect taxonomy artefacts to include simple, plain English business descriptions for validation rules. 

 

APRA supervisory levy for 2021-22 

The Government has determined the supervisory levies to be collected from APRA-regulated entities, including superannuation entities, for 2021-22. 

The levies recover the operational costs of APRA as well as other specific costs incurred by certain Commonwealth agencies and departments. These include: 

As relevant to APRA-regulated superannuation entities, the Australian Prudential Regulation Authority Supervisory Levies Determination 2021 imposes the following levy amounts and rates: 

Amount of levy 
Entity  Maximum restricted levy amount ($)  Minimum restricted levy amount ($)  Restricted levy percentage  Unrestricted levy percentage 
Pooled superannuation trust  400,000  7,500  0.00195  0.000970 
Small APRA fund or single member approved deposit fund  590  590  0.0  0.0 
Other superannuation entity  800,000  7,500  0.00390  0.002925 

 

Affordable advice: ASIC infographic summary of the industry’s response to CP 332 

ASIC has released an infographic summary of the response to Consultation Paper 332: Promoting access to affordable advice for consumers (CP 332) (see ASFA Action issue 784 for background). 

The infographic sets out the key issues raised by respondents in their submissions to CP 332, some of which include: 

 

Personal transfer balance caps: availability on ATO online 

As reported in ASFA Action issue 811, following the indexation of the general transfer balance cap on 1 July 2021, individuals will be able to view their personal transfer balance cap in ATO Online. 

The ATO had originally advised that individual personal transfer balances would be available from 5 July. Due to “system issues”, this has now been updated to 15 July. 

 

Regulator Performance Guide 

The Government has released a guide setting out the best practice principles that underpin its expectations of regulators. 

The new Regulator Performance Guide is part of the Government’s ‘deregulation agenda’, and its broader work to increase accountability, promote best practice, support cultural change and build the professionalism of regulators. The Government has noted the Guide will also streamline performance reporting against its expectations. 

The best practice principles set out in the Guide are: 

The Guide took effect from 1 July with a one-year transition period. 

 

 

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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