Super Alert – 11 July 2019

This week’s Super Alert looks at ATO’s updated Protecting Your Super (PYS) Q&A document, ASIC’s proposed action in relation to two Class Orders due to sunset in October and APRA’s Member Outcomes FAQs.

ATO updates PYS Q&A document

On 8 July 2019, the ATO advised that it had updated its PYS Q&A document to reflect APRA’s updated PYS FAQ document. APRA’s updated FAQ was mentioned in our Super Alert – 5 July 2019.

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ASIC consults on departed former temporary residents and intra-fund advice Class Orders

On 10 July 2019, ASIC issued a media release announcing the release of ASIC consultation paper 318, titled “Remaking ASIC class order on departed former temporary residents’ superannuation” (CP 318).

In the consultation paper ASIC seeks feedback in relation to whether Class Order CO 09/437 is “operating effectively and efficiently” or whether it should be revised, as it is due to sunset on 1 October 2019. The Class Order provides relief to a trustee “to notify and give exit statements to a departed former temporary resident when the member ceases to hold a superannuation product in the circumstances of Pt 3A of the [Superannuation (Unclaimed Moneys and Lost Members) Act 1999 (Cth)]”.

In the same media release, ASIC also announces its intention to repeal Class Order CO 09/210 titled “Intra-fund superannuation advice” on the basis that it was made in 2009, and its relief has been redundant since the repeal of section 945A of the Corporations Act.

Submissions on CP 318 and the repeal of CO 09/210 are due by 21 August 2019.

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APRA Member Outcomes Assessment FAQs released

On 11 July 2019, APRA released a set of frequently asked questions (FAQs) in relation to its amendment of Prudential Standard SPS 515 – Strategic Planning and Member Outcomes (SPS 515). As noted in our Super Alert of 3 May 2019, APRA will amend SPS 515 as a result of the changes made to the SIS Act by the Treasury Laws Amendment (Improving Accountability and Member Outcomes in Superannuation Measures No. 1) Act 2019.

According to the FAQs:

• Once SPS 515 is finalised “APRA plans to release supporting prudential guidance which will include APRA’s expectations for timing of the annual outcomes assessment and alignment with the business performance review under SPS 515”;
• “APRA expects to maintain [SPS 515’s] current effective date of 1 January 2020”; and
• “APRA expects that by the fourth quarter of 2019, all RSE licensees will have updated, or be in the process of updating, their strategic objectives, business plans and expenditure management processes, so as to comply with the new standard from 1 January 2020”.

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This alert was written by Natalie Cambrell, Partner, Damian Tarulli, Special Counsel and Sanela Osmanovic, Associate.​