The Lander & Rogers Superannuation Alert is a brief overview of new developments in the superannuation industry.

Type Subject matter Source Description

Federal Parliament

AFCA regulations registered

Treasury Laws Amendment Putting Consumers First -Establishment of the Australian Financial Complaints Authority) Regulations 2018

On 24 April 2018, the Treasury Laws Amendment (Putting Consumers First - Establishment of the Australian Financial Complaints Authority) Regulations 2018 was registered on the Federal Register of Legislation.

According to the Explanatory Statement the purpose of the regulations, is to "make consequential amendments to seven other regulations as an effect of the Treasury Laws Amendment (Putting Consumers First—Establishment of the Australian Financial Complaints Authority) Act 2018". The Regulations "ensure that requirements that apply to ASIC approved EDR schemes or the SCT are replaced with requirements that apply in relation to the AFCA scheme and repeal provisions that have become redundant as a result of the transition to the new dispute resolution framework".


APRA policy initiatives and key developments

APRA Insight Issue One 2018

APRA has released issue one of the APRA Insight series for 2018. In a particular focus on superannuation, APRA reports that "it has been reviewing industry practices in operational due diligence (ODD) for investment managers in superannuation, as the quality of ODD provides insights into the risk culture and overall approach to risk management of the investment manager".

In undertaking this review, APRA highlighted that effective ODD in investment management is critical given that RSE licensees "are exposed to a broad range of operational events, and their impact can vary widely". To demonstrate, APRA has outlined the "many things [that] can and will go wrong if the operational environment of the investment manager is deficient".

APRA further highlights the importance of RSE licensees adequately understanding "the ability of their external investment managers to deliver the required services such that investment strategy and objectives can be met" in order to comply with their SIS Act obligations.

APRA Super fund audits: APRA prudential standard SPS 310 revised

APRA letter to RSE licencees

Superannuation (prudential standard) determination No 1 of 2018

On 30 April 2018, in a letter to all RSE licensees, APRA announced it had made "minor amendments to Prudential Standard SPS 310 Audit and Related Matters (SPS 310) and consequential amendments to Prudential Practice Guide SPG 310 Audit and Related Matters (SPG 310)" as a result of the changes.

APRA explained that it had removed "the requirement for the auditor’s report to provide limited assurance addressing the RSE licensee’s compliance with its operational risk financial requirement (ORFR) strategy arising under Prudential Standard SPS 114 Operational Risk Financial Requirement. The requirement is considered unnecessary, given the existing responsibilities of the auditor to provide reasonable and limited assurance in their audit as set out in paragraph 19 of SPS 310".