By Mark Bland, Partner, Stephen Putnins, Partner, Geoffrey McCarthy, Special Counsel and Vijay Adithya, Lawyer

This update is designed to help superannuation trustees track and manage regulatory change. We look ahead to forthcoming developments and look back at recent changes.

We have collaborated with Argos Reg-Tech to create Argos, an online platform where subscribers can find detailed analysis of regulatory reforms, updated on a daily basis. Contact us if you would like to learn how Argos can help your firm manage the risks of regulatory change.

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Key developments

With Parliament resuming legislation requiring SGC even for employees paid less than $450 in a month allowing additional flexibility for contributions was passed. Legislation providing for the new retirement income covenant also passed Trustees need to be underway checking that they have in place complying arrangements.

Relief has come with the Senate’s disallowance of the Government’s proxy advisor regulations which were a thinly veiled attempt to suppress critical assessment of corporate performance on ESG.

The consultation on proposed revisions to SPS 530 Investment Governance with additional requirements for stress testing, valuation and liquidity management practices is closing this week. Also this month submissions close for the ALRC’s Review of Legislative Framework for Corporations and Financial Services Regulation which has the potential significantly affect AFS licensees.

Last Month

17 January 2022 – Federal Court judgement, imposing penalties of $4 million on Statewide Superannuation Pty Ltd for providing members with misleading information.

19 January 2022 – APRA’s FAQs on Phase 1 Reporting Standards were updated.

20 January 2022 – ASIC has released ‘Consultation Paper 356 ETP naming conventions’. The purpose of this is to seek feedback on the update of Information Sheet 230 (CP 356) on naming conventions for Australian exchanges that admit ETPs.

21 January 2022 -ASIC has released findings from its review of the governance practices of 10 large responsible entities of managed investment schemes.

21 January 2022 – ASIC explores regtech to address poor market disclosure. ASIC will be working with five regulatory technology (regtech) entities for the Business Research and Innovation (BRII) Regtech Round to deal with corporate disclosure issues.

27 January 2022 – The Economics Legislation Committee held a public hearing on Compensation Scheme of Last Resort.

27 January 2022 – APRA appeared before the Economics Legislation Committee on 27 January 2022 to assist the inquiry into the FAR Bill.

28 January 2022 – APRA released its Year in Review report for 2021.

31 January 2022 – APRA has released the Annual Superannuation Bulletin for the year ended 30 June 2021.

1 February 2022 – APRA released its 2022 policy and supervision priorities.

3 February 2022 – Report on Litigation Funding Participants presented by the Economics Legislation Committee.

3 February 2022 – ASIC quarterly update released.

8 February 2022 – Treasury Laws Amendment (Streamlining and Improving Economic Outcomes for Australians) Bill relating to exemption for foreign financial service providers proposed for introduction and passage in the Autumn 2022 sittings.

8 February 2022 – The Regulator Performance Omnibus Bill 2022 (the Bill) was introduced.

10 February 2022 – The Treasury Laws Amendment (Enhancing Superannuation Outcomes For Australians and Helping Australian Businesses Invest) Bill 2021 was passed on 10 February 2022 allowing additional flexibility for contributions.

10 February 2022 – The Committee held a public hearing into the superannuation sector on 10 February 2022 attended by Treasury, APRA and ASIC.

10 February 2022 – Supervisory Levy error fix in Corporate Collective Investment Vehicle Framework and Other Measures Bill 2021 passed by Parliament.

10 February 2022 – Legislation for Retirement Income Covenant (Corporate Collective Investment Vehicle Framework and Other Measures Bill 2021, Schedule 9) passes Parliament.

10 February 2022 – The Corporate Collective Investment Vehicle Framework and Other Measures Bill 2021 was passed by Parliament containing amendments to legislation extending breach reporting for breaches by representatives.

10 February 2022 – Disallowance of proxy advisor regulations by the Senate.

10 February 2022 – The Security Legislation Amendment (Critical Infrastructure Protection) Bill was introduced to the House of Representatives on 10 February 2022. and referred to the PJCIS while debate is scheduled to continue in the House of Representatives on 15 February.

Upcoming this month

16 February – Consultation for SPS 530 Investment Governance closes.

16 February – Treasury Markets Group and APRA to appear before Senate Estimates.

17 February – ASIC to appear before Senate Estimates.

25 February – Submissions close for the ALRC’s Review of Legislative Framework for Corporations and Financial Services Regulation.

25 February – Consultations close for Business eInvoicing Right (BER) adoption.

28 February – Confidential treatment discussion paper on Superannuation Data Collection Changes to be published by APRA.