This week’s Super Alert looks at an article from ASIC warning against the risks of account consolidation, as well as ASIC’s time extension for lodging financial reports and updates from the ATO in relation to the early release of super.
ATO – Q&A early release updates
On 15 May 2020, the ATO issued CRT 027/2020 in relation to an update to its questions and answers log for the early release of super. The new questions relate to cancelling payments, lodging suspicious matter reports with AUSTRAC and call centre scripting.
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ASIC – risks of account consolidation
On 19 May 2020, ASIC published an article in relation to the risks associated with consolidating super. ASIC has listed a number of key concerns in relation to encouraging members to consolidate super, including:
- ‘providers using high pressure sales tactics or forged signatures, leading to members being unable to give informed and legitimate consent to the consolidation’;
- ‘providing members with a lack of balanced—or even misleading—information about the benefits and risks of consolidation, including the potential loss of any insurance cover’; and
- ‘trustees having little to no oversight of how third parties are using their SuperMatch2 access’.
ASIC recommends that trustees ‘curb advisers and other parties from engaging in the concerning behaviours’ and ensure that members ‘are provided with clear and balanced information about consolidation’.
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ASIC – financial reporting obligations time extension
On 20 May 2020, the ASIC Corporations (Amendment) Instrument 2020/452 was registered on the Federal Register of Legislation. This adds to the relief already provided in ASIC Corporations (Extended Reporting and Lodgment Deadlines – Unlisted Entities) Instrument 2020/395 for various entities to lodge their financial reports and audits. For example, financial services licensees now have up to 4 months after the usual deadline to lodge information such as profit and loss statements and balance sheets.
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This article was written by Natalie Cambrell, Partner and Sanela Osmanovic, Senior Associate.