Welcome to the latest issue of the KHQ Super Alert. This week, both APRA and ASIC held various roundtable discussions relating to investment governance and engaging with millennials. An amended version of CPS 230 was also registered on the Federal Register of Legislation.

APRA – Superannuation CEOs roundtable

On 2 September 2024, APRA issued a media release announcing that it and ASIC held two superannuation CEO roundtables on 18 June 2024 and 16 July 2024. The discussions at these meetings focused on the importance of investment governance and its role in cultivating a robust risk culture.

Click here for details.

ASIC – Moneysmart roundtable

On 2 September 2024, ASIC issued a media release announcing that there was a Moneysmart roundtable discussion which involved ‘highly recognised Australians from financial advice, research and content creators’ for the millennial demographic. The purpose of the roundtable was aimed at working out how to encourage millennials to become ‘more informed and engaged with their super and, if appropriate, to act now to boost their superannuation balances at retirement’.

The group considered that ‘the current language and approach to superannuation is outdated and disengaging’ for young people, and that ‘[d]espite being the first generation to enter the workforce with compulsory superannuation from day one of their working lives, millennials are less engaged with their super compared to previous generations’.

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Treasury – Responses to Senate Committee reports consolidated

On 29 August, 30 August and 4 September 2024, Treasury released consolidated versions of Government responses to Senate Committee reports from 2015 to 2022. For example, responses to the following reports were published:

• ‘Inquiry into The Superannuation Guarantee’ (2015-2018 category);
• ‘Inquiry into The Superannuation (Objective) Bill 2016’ (2015-2018 category);
• ‘Inquiry into the resolution of disputes with financial service providers within the justice system’ (2019-2020 category); and
• ‘Inquiry into Financial Accountability Regime Bill 2021 and related bills’ (2021-2022 category).

Click here, here and here for details.

Legislation – CPS 230 amendments

On 2 September 2024, an amended version of APRA’s Prudential Standard CPS 230 Operational Risk Management was registered on the Federal Register of Legislation. The legislative instrument carves out non-significant financial institutions from having to comply with certain requirements in CPS 230 until 1 July 2026 (instead of its effective date of 1 July 2025). As referred to in our Super Alert of 14 June 2024, this is a previously announced measure and relates to business continuity and scenario analysis requirements.

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Legislation – Derivative transaction rules amendments

On 21 August 2024, the ASIC Derivative Transaction Rules (Reporting and Clearing) Amendment Instrument 2024/416 was registered on the Federal Register of Legislation. According to the Explanatory Statement, the purpose of this instrument is to amend the following legislative instruments:

• ASIC Derivative Transaction Rules (Reporting) 2024 Amendment Instrument 2024/1 (Cth);
• ASIC Derivative Transaction Rules (Reporting) 2024 (Cth); and
• ASIC Derivative Transaction Rules (Clearing) 2015 (Cth).

The purpose of the amendments is ‘to ensure [all instruments] are harmonised to international standards, simplified by the consolidation of related instruments and exemptions within the rules, and fit for purpose as to the scope of reporting entities and reportable transactions that are subject to the rules’.

The amendments commence on 21 October 2024 or 20 October 2025, depending on which existing instrument they relate to.

Click here for details.