APRA Mon 22.4.2013, released a letter to RSE licensees setting out its expectations around compliance with the new SuperStream requirements and reduced time limits for completing rollover transactions from 1 July 2013.
APRA notes that RSE licensees will generally need to complete superannuation rollover transactions within 3 business days from the date of receipt of a complete rollover request (previously 30 days): reg 6.34A of the SIS Regs. APRA-regulated funds must also be able to electronically receive information and payments for rollovers and transfers in accordance with the Superannuation Data and Payment Standards 2012. While the reduced time limit applies from 1 July 2013, APRA recognises that the transition-in process will be phased-in until December 2013.
RSE licensees will also be required by reg 6.33D to validate member details through the ATO Super TFN Integrity Check (SuperTIC) via the Standard Business Reporting Website. However, APRA recognises that the use of SuperTIC may not be fully integrated into an RSE licensee’s processes until a fund has completed the transition-in process.
APRA warns that delaying a single rollover by significantly more than the legislated time limit for a rollover could give rise to financial loss to the member and hence trigger a “significant” breach reporting requirement under s 29JA of the SIS Act. APRA says that RSE licensees should determine appropriate materiality thresholds considering volume and value for reporting of breaches. APRA encourages RSE licensees to comply with these new requirements as soon as possible. However, APRA will not expect a failure to comply to be reported before 1 January 2014 (ie until the transition-in process is complete).
[LTN 75, 22/4/13]