Superannuation Alert 17.06.15
Financial Services eBulletin - 17 June 2015
The Lander & Rogers Superannuation Alert is a brief overview of new developments in the superannuation industry.
- On 9 June 2015, the Family Law (Superannuation) (Interest Rate for Adjustment Period) Determination 2015 was registered. According to the Explanatory Statement, the Instrument relates to the "adjustment of superannuation entitlements of separated and divorced spouses, and of separated de facto couples (except in Western Australia)… payable in respect of a defined benefit superannuation interest or an interest in a self-managed superannuation fund" under a splitting order or agreement made in a property settlement pursuant to the Family Law Act 1975. The Instrument commences on 1 July 2015.
- On 9 June 2015, APRA and the ATO wrote an open letter, "Trustee responsibilities arising from certain SuperStream related measures" updating RSE licensees of key expectations and developments, including that:
- all RSE licensees are expected to have "completed induction and certification of their SuperStream contribution solution by 30 June 2015 and… updated their status on the ATO’s Fund Validation Service as ready to receive"; and
- RSEs must be proactive in informing employers that "default funds that offer a My Super product must now offer to employers pass through of all contribution data from 1 July 2015 and… highlight the benefits that a single channel of entry brings to the superannuation system".
- On 10 June 2015, the ASIC Superannuation (Amendment) Instrument 2015/396 was registered. According to the Explanatory Statement, the Instrument amends ASIC Class Order [CO 14/541] so that the exemption for RSE licensees from the requirement in section 29QC(1) of the Superannuation Industry (Supervision) Act 1993 continues until 1 January 2016.
- On 10 June 2015, AUSTRAC released an explanatory note for consultation regarding amendments to the customer identification requirements contained in Chapter 4 of the Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 (No. 1) (AML/CTF Rules). In a release published on the same day, AUSTRAC explained that these amendments to the AML/CTF Rules provide a "further version of the electronic safe harbour procedure for customers, broaden the collection of identification information from sources other than the customer, and extend current customer identification exemptions to include beneficial owners and politically exposed persons." Comments are due by 8 July 2015.
- In June 2015, APRA released Prudential Practice Guide SPG 223 - Fraud Risk Management (SPG 223). SPG 223 "provides guidance on APRA’s expectations for the treatment of fraud risk in an RSE licensee’s risk management framework… [and] outlines sound practices in relation to the management of fraud risk throughout an RSE licensee’s business operations", including bribery and corruption. APRA notes that SPG 223 is to be read with Prudential Standard SPS 220- Risk Management and Prudential Practice Guide - SPG 220 Risk Management.
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