This week’s Super Alert notes the OAIC’s publication of the CDR Privacy Safeguard Guidelines and the Notifiable Data Breaches Report, the first APRA Insight publication for 2020, and yet more draft legislation released by Treasury to implement new changes to superannuation law.
Office of the Australian Information Commissioner – Consumer Data Right Guidelines
On 24 February 2020, the OAIC published its Privacy Safeguard Guidelines for the Consumer Data Right (CDR) which explain ‘how the Information Commissioner will interpret and apply the privacy safeguards under Part IVD of the Competition and Consumer Act 2010′ (which are the CDR provisions).
Although the CDR currently only applies to the banking industry, the Government has previously advised that it will be rolled out to the superannuation industry in future – see our Super Alert of 28 October 2019.
Please click here to read more.
APRA Insight 2020 Issue One
On 28 February 2020, APRA published the first issue of its ‘APRA Insight’ for 2020. The topics covered include:
- ‘APRA’s progress on the Royal Commission recommendations’, such as its aim to finalise changes to SPS 250 Insurance in Superannuation ‘by the middle of the year’;
- ‘APRA’s evolving approach to supervising risk culture’; and
- the new era of cooperation between APRA and ASIC, and their intention to ‘issue additional guidance to [the superannuation] industry on fees for no service’.
Please click here to read more.
Office of the Australian Information Commissioner – Notifiable Data Breaches Report
On 28 February 2020, the OAIC published its ‘Notifiable Data Breaches Report: July–December 2019’. One of the purposes of the report is to highlight emerging issues for attention by entities covered by the notifiable data breach provisions in the Privacy Act 1988 (Cth).
Key findings for the July to December 2019 period include:
- ‘537 breaches were notified under the [Notifiable Data Breaches] scheme, up from 460 in the previous six months’;
- ‘Malicious or criminal attacks (including cyber incidents) remain the leading cause of data breaches, accounting for 64 per cent of all notifications’;
- ‘Finance [including superannuation] is the second highest reporting sector, notifying 14 per cent of all breaches’; and
- ‘Contact information remains the most common type of personal information involved in a data breach’.
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Parliamentary Committee review of the APRA Annual Report 2019
On 2 March 2020, the House of Representatives Standing Committee on Economics tabled its ‘Review of the Australian Prudential Regulation Authority Annual Report 2019’.
The superannuation issues discussed in the report include APRA’s responses to the Committee’s questions on:
- ‘fees in superannuation’,
- ‘APRA’s methodology … [and] fee data for the heatmap’,
- APRA’s view on the Operational Risk Financial Requirement reserve following the IOOF case; and
- APRA’s view on ‘super funds engaging in the purchase of unlisted assets’.
Please click here to read more.
Exposure draft legislation – Improving flexibility of superannuation for older Australians
On 5 March 2020, Treasury released an exposure draft Bill and Regulations which ‘are intended to give effect to the measure: Superannuation – improving flexibility for older Australians announced in the 2019-20 Budget, effective from 1 July 2020.’
‘The draft Regulations would amend the SIS Regulations to both allow people aged 65 and 66 to make voluntary contributions without meeting the work test, and people aged 70 to 74 to receive spouse contributions. … The draft Bill would [also] amend the [tax legislation] to extend access to the bring‑forward arrangements to people aged 65 and 66 for the first time.’
The draft legislation is open for consultation until 3 April 2020.
Please click here to read more.
This article was written by Natalie Cambrell, Partner, Sanela Osmanovic, Associate and Joseph Cheung, Solicitor.