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  • Superannuation Industry Stewardship Group special briefing 16 April 2020

    Welcome

    David Knox, Senior Partner, Mercer acknowledged country and welcomed everybody to the meeting.

    David introduced John Ford, the acting Deputy Commissioner Superannuation and Employer Obligations while James O’Halloran has moved across to lead the JobKeeper program.

    AUSTRAC was welcomed to the meeting to listen and clarify any aspects of the proof of identity issues regarding the COVID-19 early release of superannuation measure.

    Early release of superannuation

    Sonia Corsini, Assistant Commissioner, Superannuation and Employer Obligations ATO, outlined the ATO"s current position on the early release of superannuation.

    • ATO is ready to implement this measure from Monday 20 April 2020.
    • Over 600,000 individuals have registered their interest and this number continues to rise. Updates on volumes are also provided to industry via a CRT alert each Friday.
    • Frequently asked questions (FAQs) from funds are being published on ato.gov.au.

    Larissa Evans, Assistant Commissioner, Superannuation and Employer Obligations ATO, noted that discussions have continued with the Superannuation Administration Group around implementation and there have been a number of CRT alerts issued with updates made to information on the ATO website. On Friday 17 April 2020 the ATO will advise funds the process for communicating with the ATO about any issues they face once we go live.

    Regulator update

    Members were provided with updates on the priorities, status of existing work programs and announcements by Treasury, the Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC).

    Treasury

    Robert Jeremenko, Division Head, Retirement Income Policy Division, Treasury, advised their focus is on co-ordination of COVID-19 measures across government, with a particular focus on the new early release of superannuation measure.

    APRA

    Eve Brown, Senior Manager, Superannuation Policy APRA, outlined the following:

    • two new FAQs on the temporary early release of superannuationExternal Link measure were published on 16 April 2020, on what 'as soon as practicable' means and on trustee liability.
    • deferral of the next data collection under the Super Data Transformation Project until September 2021.
    • APRA’s position on the three day portability rule where RSE licensees can demonstrate that despite taking every reasonable action non-compliance was unavoidable.
    • temporary suspension by APRA of issuing of new RSE licencesExternal Link
    • Prudential Standard CPS 234 Information Security (third-party arrangements transition provision) – APRA will consider granting a six month extension for compliance with the standard to 1 January 2021 on a case by case basis.
    • Prudential Standard CPS 226 Margining and risk mitigation for non-centrally cleared derivatives (phase-in of initial margin requirements) - APRA will allow a delay of 12 months from the initial commencement date of 1 September 2021 to 1 September 2022 for all level five entities (including superannuation funds), in line with agreed global practice.
    • all questions on the new early release measure should be directed to the new APRA mailbox earlyrelease@APRA.gov.au.

    ASIC

    Jane Eccleston, Senior Executive Leader, Superannuation, ASIC outlined the following. in relation to the early release of superannuation scheme:

    Other updates included details of changes to ASIC regulatory work and prioritiesExternal Link in light of COVID-19 which includes a tableExternal Link outlining superannuation activities that will be affected.

      Last modified: 06 May 2020QC 62526