This week’s Super Alert covers updates from ASIC and APRA in relation to their enforcement approaches, APRA’s superannuation statistics and changes to SFT reporting to the ATO.
APRA superannuation statistics for June 2019 quarter
On 27 August 2019, APRA released its Quarterly Superannuation Performance Statistics for June 2019. According to APRA, assets in the superannuation industry “totalled $2.9 trillion at the end of the June 2019 quarter” and that resulted from a 6.2% increase from the previous 12 months.
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ASIC Commissioner speech in relation to new enforcement approach
On 30 August 2019, ASIC Commissioner Sean Hughes presented at the Banking and Financial Services Law Association annual conference. The Commissioner outlined the “features of [ASIC’s] renewed and reinvigorated enforcement approach”.
According to the Commissioner:
- The “Why Not Litigate?” approach means that “once ASIC is satisfied breaches of the law are more likely to have occurred than not, and the facts of the case show pursuing the matter would be in the public interest, then [ASIC] will actively ask [itself]: why not litigate this matter?”;
- Subsidiary questions which ASIC will ask itself are “[w]hether to pursue criminal or civil action (or alternatively licensing or banning action), and…[w]hether any action is against the corporation or individuals or both”; and
- In relation to ASIC’s new Office of Enforcement, it will “centralise decision-making processes and ensure the consistent adoption of the Why Not Litigate? approach…increase the focus on priority matters and ensure adequate and flexible resourcing of matters, and…adopt uniform procedures and achieve greater consistency in our enforcement approach”.
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APRA enforcement approach update
On 3 September 2019, APRA updated its enforcement approach to “include principles that APRA will take into account when considering when and how to publicise its enforcement actions, and guidance on APRA’s approach to enforcement for data submissions”.
According to APRA, it will generally make public:
- “Administrative enforcement actions taken by APRA, such as formal directions and licence conditions or infringement notices;
- Acceptance of an enforceable undertaking received from a regulated entity or an individual;
- Disqualifications of accountable persons under the Bank Executive Accountability Regime, or other responsible persons under the prudential framework; and
- Court-based enforcement actions commenced by APRA”.
A table has also been included in the document to demonstrate APRA’s enforcement approach for data submissions.
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ATO updated SFT reporting protocol
On 4 September 2019, the ATO advised that it had updated its reporting protocol for successor fund transfers in order “to clarify some of the common enquiries [the ATO had] received from the industry”. The ATO is seeking industry feedback in relation to the updated protocol. Submissions close on 2 October 2019.
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This alert was written by Natalie Cambrell, Partner, Damian Tarulli, Special Counsel and Sanela Osmanovic, Associate.