Note: the numbering of these questions is fixed and will not change as new questions are added.
Updated: 24 March 2016
FAQ 5: What are the due dates for each of the reporting forms that are required to be submitted to APRA over the next two years?
FAQ 7: How do I find more about my obligations to report to APRA?
FAQ 50: Do the new audit requirements need to be satisfied before the data provided in quarterly reporting forms can be submitted?
FAQ 79: Appendix B to APRA’s recent discussion paper, ‘Publication of superannuation statistics and confidentiality of superannuation data’, does not include SRF 114.0, SRF 114.1, SRF 160.0, SRF 160.1, SRF 700.0, SRF 702.0, SRF 703.0 in the list of forms to be covered by the determination. Does APRA intend to make data collected on these forms non-confidential?
FAQ 9: When does a MySuper product that was authorised after the initial submission of SRF 001.0 have to be reported to APRA?
FAQ 10: When reporting SRF 001.0 in relation to a PST, what information needs to be provided?
FAQ 12: What does ‘effective date’ mean in the context of reporting on select investment options on SRF 001.0 and SRF 601.0? What does ‘ceased’ mean in the same context?
FAQ 14: What is a unique identifier as required on SRF 001.0? Can an RSE licensee choose its own identifiers for the purposes of reporting to APRA?
FAQ 15: What is the purpose of item 1 (RSE licensee ownership) on SRF 001.0? What information is APRA seeking where ‘other ownership type’ is reported?
FAQ 73: If a MySuper product has been authorised but is not yet offered to members, when should the MySuper product be reported to APRA?
FAQ 95: When I report a new piece of information on SRF 001.0, do I need to fill in the whole form? (added 16 June 2014)
FAQ 16: Does the requirement to report SRF 410.0 cease when all accrued default amounts have been moved to a MySuper product?
FAQ 17: What does a ‘MySuper interest’ mean? How does a ‘MySuper interest’ differ from a ‘MySuper member’?
FAQ 122: What is the difference between fees, costs and expenses within the APRA reporting forms? (amended 23 October 2014)
FAQ 18: What does the term ‘across an RSE licensee’s business operations’ mean in the context of SRF 114.0?
FAQ 19: On what basis should SRF 114.1 be completed? Does it apply at the fund level or at the trustee level?
FAQ 20: What is the definition of ‘defined benefit RSE’? Should interests held in a defined benefit RSE or defined benefit sub-fund be considered when identifying select investment options?
FAQ 21: APRA has identified a number of reporting forms that must be completed for defined benefit RSEs and defined benefit sub-funds. Are these the only reporting forms applying to defined benefit RSEs and defined benefit sub-funds?
FAQ 22: Should defined benefit information and defined contribution information be reported on SRF 160.0?
FAQ 23: Are Reporting Form SRF 160.0 Defined Benefit Matters (SRF 160.0) and Reporting Form SRF 160.1 Defined Benefit Member Flows (SRF 160.1) to be reported for each sub-fund as well as each defined benefit RSE? (amended 7 November 2014) AMENDED
FAQ 65: Should the total benefit payments be reported in SRF 160.1 (item 3 column 2) gross or net of any tax amount on the benefit?
FAQ 67: How are defined benefit contributions to be reported in item 1.1.3 on SRF 330.0? Is there consistency in the reporting requirements for other APRA reporting forms and for the Member Contribution Statements (MCS) reporting to the ATO?
FAQ 68: How is members’ ‘vested benefits’ defined for the purposes of reporting on SRF 160.0 and SRF 160.1? Should the value of other options (where a defined benefit member has the right to choose between an immediate lump sum and other options) be included in the value of vested benefits?
FAQ 104: Does all of the information reported under item 1 of Reporting Form SRF 160.0 Defined Benefit Matters (SRF 160.0) need to be as at the same date? (added 11 August 2014)
FAQ 106: In APRA’s reporting collection, what is the difference between accrued benefits (ref: item 1.1 of Reporting Form SRF 160.0 Defined Benefit Matters (SRF 160.0)) and defined benefit members’ benefits (widely used in the reporting collection)? (added 8 September 2014)
FAQ 108: When reporting detailed member segmentation on Reporting Form SRF 160.0 Defined Benefit Matters (SRF 160.0), Reporting Form SRF 610.0 Membership Profile (SRF 610.0) and Reporting Form SRF 610.2 Membership Profile (SRF 610.2), how should liabilities be reported when they do not relate to specific members or are impractical to allocate to specific members? (added 8 September 2014)
FAQ 109: Who is required to complete Reporting Form SRF 161.0 Self-Insurance (SRF 161.0)? (added 8 September 2014)
FAQ 110: How should item 1.3 of Reporting Form SRF 161.0 Self-Insurance (SRF 161.0) be completed, where a self-insurance arrangement is funded solely through self-insurance reserves? (added 8 September 2014)
FAQ 111: Should income protection insurance claims that are in the course of payment at the reporting date, but subject to regular reassessment, be reported in item 2 or item 3 of Reporting Form SRF 161.0 Self-Insurance (SRF 161.0)? (added 8 September 2014)
FAQ 112: How should item 4.2 of Reporting Form SRF 161.0 Self-Insurance (SRF 161.0) be completed, where reinsurance premium payments are made solely from the RSE’s self-insurance reserves? (added 8 September 2014)
FAQ 86: What amount must be reported in Reporting Form SRF 161.0 Self-Insurance (SRF 161.0) or Reporting Form SRF 250.0 Acquired Insurance (SRF 250.0), for income protection insurance cover and claims? (amended 11 August 2014)
FAQ 99: Must an RSE licensee report insurance related flows on Reporting Form SRF 330.1 Statement of Financial Performance (SRF 330.1) and Reporting Form SRF 330.2 Statement of Financial Performance (SRF 330.2) in accordance with the fair and reasonable allocation processes required under section 99E of the SIS Act (s.99E)? (added 11 August 2014)
FAQ 64: How should an RSE licensee complete the items in SRF 260.0 - Trustee Statement, that refer to provisions in the SIS Act that no longer exist (e.g. s29E(1)(c) and 29P)?
FAQ 24: SRF 320.0 requires reporting about ‘defined benefit members’ benefits’. Does this include the accumulation balance of these defined benefit members in addition to the defined benefit balance?
FAQ 26: Does SRF 331.0 collect information about actual expenses incurred by an RSE, or should expected expenses also be included?
FAQ 27: When should an RSE licensee report on item 18 on SRF 320.0 relating to insurance liabilities?
FAQ 53: Does APRA expect SMSF rollovers to be reported on SRF 330.0 despite the SuperStream electronic rollover payment not yet being in effect?
FAQ 54: How should KiwiSaver contributions and benefit payments be reported when these have not been captured previously?
FAQ 87: Where a member has both defined benefit members’ benefits and defined contribution members’ benefits, how should this be reported in item 5 on SRF 320.1? (added 14 May 2014)
FAQ 69: How should fee rebates, e.g. management fee rebates, be reported on SRF 330.0, SRF 330.1, SRF 330.2 and SRF 800.0?
FAQ 100: Must an RSE licensee report about all services undertaken on Reporting Form SRF 331.0 Services (SRF 331.0)? Should an RSE licensee apply a materiality threshold to items reported on this form? (added 11 August 2014)
FAQ 101: How must an RSE licensee report multiple services provided under one arrangement in items 1 and 2 of Reporting Form SRF 331.0 Services (SRF 331.0)? (added 11 August 2014)
FAQ 33: Why does APRA suggest that RSE licensees submit SRF 520.0on an annual basis in addition to the requirement to notify APRA of any changes of information on the form?
FAQ 30: What are the look-through reporting requirements on SRF 530.1? (amended 25 February 2014)
FAQ 31: How should hedge fund investments be reported on the investments reporting forms? Do hedge fund investments need to be reported by looking through to their holdings?
FAQ 34: Is ‘total assets’ reported on SRF 533.0 meant to reflect the net assets payable to members of the MySuper product?
FAQ 36: How should SRF 533.0 be reported where an RSE licensee does not use a strategic asset allocation approach for the MySuper investment option or select investment option?
FAQ 37: Do references to ‘look through reporting’ in relation to indirectly held investments mean that cascading trusts will have to be ‘looked through’ to provide details of all indirect assets? (amended 16 June 2014)
FAQ 38: What are APRA’s expectations with respect to look-through reporting for funds that invest wholly in life policies offered by life companies which are also subject to APRA regulation and reporting obligations?
FAQ 47: When does reporting on SRF 533.0 and SRF 702.0 for select investment options commence?
FAQ 48: How should investment options that hold RSE reserves be reported on SRF 601.0?
FAQ 60: Where an indirectly held investment contains derivative contracts, how should those derivative contracts be reported on Reporting Form SRF 530.1 Investments and Investment Flows (SRF 530.1) and Reporting Form SRF 530.0 Investments (SRF 530.0)? (amended 11 August 2014)
FAQ 61: How does APRA expect the investment flows of an investment vehicle to be reported on SRF 530.1 and SRF 531.0 where an RSE licensee does not have the detailed information required to report flows by asset class, asset domicile and asset listing?
FAQ 70: The instructions for SRF 530.1, and other investments forms, note that assets and liabilities in currencies other than AUD are to be converted to AUD using the mid-point rate as at the reporting end date. Does this conversion approach extend to income and expenses?
FAQ 71: How should the asset class of investments be reported on a look-through basis? For example, should cash in an equity portfolio be reported as cash or as equity?
FAQ 84: A number of data items that have been updated in Reporting Standard SRS 530.1 Investments and Investment Flows and Reporting Standard SRS 533.0 Asset Allocation are also reflected in reporting requirements under Reporting Standard SRS 530.0 Investments, Reporting Standard SRS 531.0 Investment Flows and Reporting Standard SRS 532.0 Investment Exposure Concentrations. Does APRA intend to also update SRS 530.0, SRS 531.0 and SRS 532.0 to reflect these changes? (amended 27 June 2014)
FAQ 115: Must RSE-level investment income, unrealised gains / losses and realised gains / losses reported on Reporting Form SRF 330.0 Statement of Financial Performance (SRF 330.0) reconcile to investment flows information reported on Reporting Form SRF 530.1 Investments and Investment Flows, Reporting Form 531.0 Investment Flows and Reporting Form 534.0 Derivative Financial Instruments? (added 8 September 2014)
FAQ 116: Must MySuper product-level investment income, unrealised gains / losses and realised gains / losses reported on Reporting Form SRF 330.2 Statement of Financial Performance (SRF 330.2) reconcile to investment flows information reported on Reporting Form SRF 533.0 Asset Allocation? (added 8 September 2014)
FAQ 117: Does APRA intend to change the asset class information required under the 500 series of reporting forms? (added 1 October 2014)
FAQ 123: How should RSE licensees determine which investments to report to APRA on Reporting Form SRF 532.0 Investment Exposure Concentrations (SRF 532.0)? (added 23 October 2014)
FAQ 94: Under which SIS Regulations is an RSE licensee required to notify APRA about a wind-up of an RSE? (added 14 May 2014)
FAQ 113: Should an RSE licensee that is winding up an RSE refer to Reporting Standard SRS 602 Wind Up or APRA Superannuation Circular No III.A.6 Winding-up a superannuation fund paragraph 14? (added 8 September 2014)
FAQ 40: Does item 3.3 on SRF 610.0 (relating to ‘both taxed and tax-free phase’) refer to a member having both a super member account (accumulation phase) and a pension member account (retirement phase)? (amended 25 February 2014)
FAQ 41: Does the definition of a pension benefit include regular income stream payments and any cash benefit payments that are chosen to be taken as a lump sum?
FAQ 42: On SRF 610.0, information must be reported about segmentation of member accounts by age, gender and type of income stream. Should all pension members’ benefits be reported in column 6 of item 6? Further, should pension members’ benefits be reported in Item 5 column 5?
FAQ 55: What is meant by ‘direct any portion’ in the definition of ‘MySuper interest as a result of member investment choice’?
FAQ 92: Where can I find more detailed guidance on Reporting Standard SRS 700.0 Product Dashboard (SRS 700.0), Reporting Standard SRS 702.0 Investment Performance (SRS 702.0) and Reporting Standard SRS 703.0 Fees Disclosed (SRS 703.0)? (added 14 May 2014)
FAQ 78: How should the statement of fees and costs, which is required to be included on the MySuper product dashboard and reported in item 4 on Reporting Form SRF 700.0 Product Dashboard be calculated both for the 31 December 2013 submission and on an ongoing basis? (added 23 December 2013)
FAQ 120: Where an RSE licensee changes the information disclosed in a MySuper product dashboard, is the RSE licensee required to submit a new, ad-hoc Superannuation Reporting Form SRF 700.0 Product Dashboard (SRF 700.0) return to APRA, or is the RSE licensee required to resubmit an existing version of SRF 700.0? (added 1 October 2013)
FAQ 66: On SRF 702.0, a number of items are to be reported on a look-through basis. Is this the same basis as for the other reporting forms (e.g. SRF 533.0, SRF 530.1)? (amended 16 June 2014)
FAQ 76: ASIC has announced that the commencement of the new fee disclosure requirements will be deferred until 1 July 2014. How does this affect the commencement of Reporting Standard SRS 703.0 Fees Disclosed, which collects information about fees disclosed in the PDS relating to a MySuper product? (added 13 December 2013)
FAQ 121: Where an RSE licensee changes the fees and costs disclosed in a Product Disclosure Statement (PDS) relating to a MySuper product, is the RSE licensee required to submit a new, ad-hoc Superannuation Reporting Form SRF 703.0 Fees Disclosed (SRF 703.0) return to APRA, or is the RSE licensee required to resubmit an existing version of SRF 703.0?? (added 1 October 2014)
FAQ 43: What evidence must an RSE licensee have for the purposes of establishing a pension account if their existing processes for establishing pension accounts do not typically specify a condition of release?
FAQ 56: How are rolled over pension accounts required to be reported on SRF 710.0?
FAQ 77: How should a 'lost member' be defined for the purposes of reporting conditions of release on Reporting Form SRF 710.0 Conditions of Release? (amended 25 February 2014)
FAQ 39: How should item 1.4 on SRF 600.0 be reported where an RSE licensee has different approaches for the terms of executive and non-executive directors on the Board e.g. the term for non-executive directors is 3 years with no maximum number of terms, but there is no term specified for executive directors?
FAQ 81: To what extent should reporting on SRF 600.0 affect remuneration information required to be disclosed for the purposes of ASIC’s requirements? (added 25 February 2014)
FAQ 98: Which reporting levels apply to SRF 601.0? (added 27 June 2014)
FAQ 102: Noting APRA’s ongoing consultation on the reporting requirements for select investment options, should I still complete item 6.2 of Reporting Form SRF 601.0 Profile and Structure (RSE) (SRF 601.0)? (added 11 August 2014)
FAQ 82: Does APRA expect the total number of transactions reported in items 1, 2 and 5 on SRS 711.0 to correspond to the value of transactions reported in SRS 330.0? (amended 27 June 2014)
FAQ 83: A number of data items that have been updated in Reporting Standard SRS 320.0 Statement of Financial Position, Reporting Standard SRS 330.0 Statement of Financial Performance and Reporting Standard SRS 530.1 Investments and Investment Flows also appear on the reporting standards that apply to small APRA funds (i.e. Reporting Standard SRS 800.0 Financial Statements and Reporting Standard SRS 801.0 Investments and Investment Flows). Does APRA intend to also update SRS 800.0 and SRS 801.0 to reflect these changes?
FAQ 29: When will the authorisation package be finalised?
FAQ 2: When will the authorisation package and Prudential Standard SPS 410 MySuper Transition be finalised?
FAQ 3: When can entities submit draft applications to APRA?
FAQ 6: Can insurance premiums be deducted from a member's MySuper account?
FAQ 45: Must a MySuper lifecycle option have only four life stages?
FAQ 9: What forms part of the accrued default amount to be transferred to a MySuper product?
FAQ 28: Where an RSE licensee is granted MySuper authorisation effective 1 July 2013, when must it begin paying contributions into a MySuper product of the RSE?
FAQ 40: If an RSE licensee is granted MySuper authorisation effective 1 July 2013, when must it begin accepting contributions into MySuper?
FAQ 61: Section 29WA(2) of the Superannuation Industry (Supervision) Act 1993 requires that a RSE licensee must treat contributions in relation to which the member has not given any direction as a contribution to be paid into a MySuper product from 1 January 2014. What are APRA’s expectations regarding RSE licensees engaging with employers where the RSE licensee is the licensee of an RSE that is not seeking MySuper authorisation or is seeking MySuper authorisation but may not have a MySuper authorisation at 1 January 2014?
A: The reporting standard for each reporting form specifies the due date for submission of the reporting form to APRA. APRA has also produced a summary table that lists the due dates for each of the quarterly forms and annual forms for the 2013-14 year of income and the 2014-15 year of income. Note that these dates apply only to RSEs that have a balance date of 30 June. Entities with balance dates other than 30 June should contact APRA via firstname.lastname@example.org, if necessary, to discuss their due dates.
A: APRA’s reporting standards are available on APRA’s website at: http://www.apra.gov.au/Super/ReportingFramework/Pages/Final-reporting-standards-for-Superannuation-June-2013.aspx. The reporting standards provide information about which forms need to be completed by which entities, how often and the due dates for providing the data.The reporting instructions contain information that will assist RSE licensees to ensure that the information reported in the forms is accurate. RSE licensees should check the instructions first for an answer to any queries that might arise when reporting to APRA. APRA will continue to issue guidance and FAQs to address issues as they arise, so RSE licensees are encouraged to visit this page regularly to find out up to date information about the reporting framework.
A: The audit requirements are intended to apply to the full year of income of an RSE. The audit requirements are not in respect of the quarterly reporting periods.
A: Yes, APRA does intend to make some data collected on these forms non-confidential.
As outlined on page 20 of the Discussion Paper, Reporting Form SRF 114.0 Operational Risk Financial Requirement collects information annually relating to the ORFR of an RSE licensee. Reporting Form SRF 114.1 Operational Risk Financial Requirement collects information annually relating to the ORFR of an RSE. APRA does not propose that data collected on SRF 114.0 and SRF 114.1 relating to the ORFR be determined non-confidential during the three-year transition period from 1 July 2013. After this transition period, APRA proposes to consult industry in relation to whether to determine some ORFR data non-confidential.
As outlined on page 20 of the Discussion Paper, APRA proposes to make certain data collected on Reporting Form SRF 160.0 Defined Benefit Matters and Reporting Form SRF 160.1 Defined Benefit Member Flows non-confidential. APRA proposes, however, that quarterly data relating to the vested benefits index of a defined benefit fund or sub-fund will not be determined non-confidential.
As outlined on page 19 of the Discussion Paper, section 348A of the SIS Act specifically provides for APRA to collect information on the fees, costs and returns of each MySuper product and requires APRA to publish MySuper product data. As APRA is required under legislation to publish certain data, MySuper data collected on Reporting Form SRF 700.0 Product Dashboard, Reporting Form SRF 702.0 Investment Performance and Reporting Form SRF 703.0 Fees Disclosed are not considered to be protected under the APRA Act and are therefore already treated as non-confidential by APRA. APRA welcomes submissions on these forms in relation to Select Investment Options, but also intends to consult industry in 2014 on the confidentiality of Select Investment Options data.
The Discussion Paper can be found at: http://www.apra.gov.au/Super/Publications/Pages/Publication-super-statistics-confidentiality-super-data.aspx. Submissions on the APRA’s proposals are due by Friday 31 January 2014.
A: An RSE licensee must report information in Part C of SRF 001.0 about a MySuper product within 28 days of becoming authorised to offer the MySuper product. If an RSE licensee initially submitted SRF 001.0 to APRA by 28 May 2013 but, at that date, was not authorised to offer a MySuper product, the RSE licensee will need to resubmit Part C of SRF 001.0 when it has received the MySuper authorisation.
A: SRF 001.0 must be completed by each RSE licensee with respect to the entirety of its business operations. This means that for each item on the form:
- Items 1-3: relevant for an RSE licensee of a PST.
- Item 4: not relevant for a PST as it does not have members.
- Item 5: not relevant for a PST.
- Item 6: relevant for a PST that has various investment options within the PST.
- Item 7: not relevant for a PST.
A: The effective date refers to the date from which the select investment option took effect, which might also be described as the start date. Where the effective or start date of an investment option is not known, APRA expects an RSE licensee to report the earlier of the date the first PDS was issued or the date the APIR code was obtained. ‘Ceased’ refers to the situation where a select investment option is no longer offered in the investment menu for an RSE and the value of the assets in that investment option is zero.
A: An RSE licensee can choose its own identifiers for the purposes of reporting to APRA. The identifier needs to be unique within an RSE. The identifier must not change over time. The identifier will be used by APRA to allocate forms for each select investment option to submit to APRA via D2A.
A: This data item is looking to capture information about the ownership of the RSE licensee. If an RSE licensee determines that its ownership structure does not fit into the categories provided, it would be appropriate to report ‘other ownership type’.
A: The reporting of a MySuper product, including MySuper investment options, should occur from the date the RSE licensee is authorised to offer the MySuper product. That is, if a MySuper product is authorised by APRA on 1 February, the RSE licensee must complete the relevant reporting forms for each reporting period that ends after that date (e.g. 31 March quarterly forms).
If a MySuper product has been authorised by APRA but is not yet made available to members, the RSE licensee must still complete the relevant reporting forms. APRA expects that the RSE licensee will report data in items for which the RSE licensee has information, such as Strategic Asset Allocation information in Reporting Form SRF 533.0 Asset Allocation, but acknowledges that there will be items reported as blank, such as investment earnings information in Reporting Form SRF 702.0 Investment Performance.
Within 28 days of a MySuper product authorisation being granted, an RSE licensee must submit Reporting Form SRF 001.0 Profile and Structure (SRF 001.0) with an updated Section C that includes the details of the MySuper product, so that reporting forms will be allocated to the RSE. In Section C of SRF 001.0, the effective date is to be reported as the MySuper product authorisation date. The effective date for each MySuper investment option is also to be reported as the MySuper product authorisation date.
An RSE licensee must submit SRF 001.0 with an updated Section C when new MySuper investment options are offered after the original MySuper product authorisation date.
A: Yes; the whole form must be completed.
A: The requirement to report SRF 410.0 will cease from 1 July 2017. SRF 410.0 will continue to be allocated to all RSEs until that date. If all accrued default amounts have been moved to a MySuper product, it is appropriate to report a blank SRF 410.0.
A: A MySuper interest is a beneficial interest in a MySuper product. A MySuper member is a member of a regulated superannuation fund who holds a MySuper interest. APRA’s reporting collection does not refer to the concept of a MySuper member but the term ‘MySuper member’ is defined in subsection 10(1) of the SIS Act.
A: The terms ‘fees’, ‘costs’ and ‘expenses’ are used in a range of ways by different industry participants. For clarification, APRA has defined these terms as they apply in the reporting collection.
- Fee: means an amount that is directly charged to a member (regardless of who pays the fee) and will form part of the fee disclosure required in PDSs. Reporting Standard SRS 540.0 Fees (SRF 540.0) collects information on fees as do Reporting Forms SRF 700.0 Product Dashboard (SRF 700.0), SRF 702.0 Investment Performance (SRF 702.0) and SRF 703.0 Fees Disclosed (SRF 703.0).
- Cost: means an indirect or embedded amount that the RSE licensee draws from members; these may or may not be disclosed and can take the form of a deduction from a member’s return, contributions or balance. SRF 700.0, SRF 702.0 and SRF 703.0 collect information on both fees and costs including costs which form part of the indirect cost ratio.
- Expense: means the amount that the RSE licensee incurs in operating the fund. SRF 331.0 Services, collects information on expenses as does SRF 330.0 Statement of Financial Performance, SRF 330.1 Statement of Financial Performance and SRF 330.2 Statement of Financial Performance.
A: The term ‘RSE licensee’s business operations’ is defined in Prudential Standard SPS 114 Operational Risk Financial Requirement for the purposes of that standard as: an ‘RSE licensee’s business operations’ includes all activities as an RSE licensee (including the activities of each RSE of which it is the licensee), and all other activities of the RSE licensee to the extent that they are relevant to, or may impact on, its activities as an RSE licensee. Item 2.1 on SRF 114.0 must therefore reflect the overall ORFR target amount for an RSE licensee’s business operations i.e. trustee plus each fund under its trusteeship. The financial resources held to meet this ORFR target amount would be the sum of item 3 (all ORFR reserves within the RSE licensee’s business operations) plus item 4.
A: SRF 114.1 must be completed for each RSE. While ORFR trustee capital is not usually attributed beyond the RSE licensee, it is possible under APRA’s prudential requirements for these resources to be held with respect to an RSE for the purposes of meeting the ORFR. This scenario is reflected in the design of SRF 114.1.
A: Each reporting standard and set of instructions includes an interpretation section, which includes definitions applicable to that reporting standard. In those reporting standards that apply to DB RSEs, the following definition is included: defined benefit RSE means an RSE that is a defined benefit fund within the meaning given in Prudential Standard SPS 160 Defined Benefit Matters. Each investment option that underlies a defined benefit interest must be reported as a select investment option, regardless of whether that interest is held within a defined benefit RSE or a defined benefit sub-fund.
A: There are a number of reporting forms that apply to defined benefit RSEs in addition to the forms that collect specific defined-benefit information. The reporting standards and Attachment A to the Response to Submissions paper provide further information on reporting requirements by reporting level.
A: SRF 160.0 requires information to be reported about defined benefit members. Where a defined benefit member has both defined benefit and defined contribution benefits, information on both types of benefits must be reported on the form.
A: Yes, subject to the qualification below, SRF 160.0 and SRF 160.1 must be completed for each defined benefit RSE and each sub-fund that contains at least one defined benefit member. An RSE licensee will be allocated forms in D2A for each defined benefit RSE and each defined benefit sub-fund that has been reported to APRA on Reporting Form SRF 001.0 Profile and Structure (Baseline).
However, where each defined benefit member is accounted for in a sub-fund, the following arrangements apply:
- the RSE licensee must notify its APRA Responsible Supervisor that each defined benefit member is accounted for in a sub-fund, identifying the name of the affected defined benefit RSE and the relevant defined benefit sub-fund(s);
- the RSE licensee will not be required to complete SRF 160.0 and SRF 160.1 for the defined benefit RSE; but
- the RSE licensee will still be required to complete SRF 160.0 and SRF 160.1 for each defined benefit sub-fund within that RSE.
For the avoidance of doubt, where defined benefit members within the RSE are not accounted for in a sub fund, the RSE licensee must complete SRF 160.0 and SRF 160.1 for that defined benefit RSE, as well as any defined benefit sub-fund, in line with the reporting instructions to SRF 160.0 and SRF 160.1.
A: The gross amount should be reported. This is consistent with SRF 330 (Item 2, Members’ benefits outflows), which includes an ‘of which’ item for PAYG withholding tax.
A: The reporting of defined benefit contributions in item 1.1.3 on SRF 330.0 must be consistent with reporting of the same information required on SRF 330.1, SRF 330.2 and SRF 160.1. Note that the definition of defined benefit contributions is aligned with requirements for MCS reporting to the ATO.
A: For APRA reporting purposes, the value of a member’s ‘vested benefit’ should include an allowance for any option the member could exercise where this is consistent with the funding calculation.
The definition of ‘vested benefits’ in APRA’s reporting standards is drawn from the SIS Act s. 83A definition of fund’s liabilities in respect of vested benefits. It is not APRA’s intention to change the meaning of ‘vested benefits’ in SIS Reg 9.04.
A: Yes, the information reported in items 1.1 to 1.4 on SRF 160.0 must be reported as at the same date. The date is to be reported in item 1.5.
These items are to be reported as the most up to date information available to the RSE licensee as at the end of the reporting period, where all four items 1.1 to 1.4 were calculated as at a consistent point in time. This may be based upon a recent estimate or it may be at the date of the last actuarial investigation.
For example, if an RSE licensee is required to complete SRF 160.0 as at 30 June 2015 and it has available the information required in items 1.1 to 1.4 at the following dates:
- Item 1.1 – accrued benefits – as at 30 June 2013 (actuarial investigation) and 30 June 2014 (estimate);
- Item 1.2 – vested benefits – as at 30 June 2013 (actuarial investigation), 30 June 2014 (estimate), 31 December 2014 (estimate) and 30 June 2015 (estimate);
- Item 1.3 – minimum benefits – as at 30 June 2013 (actuarial investigation) and 30 June 2014 (estimate); and
- Item 1.4 - Net assets available for members’ benefits (net of ORFR reserves) - as at 30 June 2013 (actuarial investigation), 30 June 2014 (estimate), 31 December 2014 (estimate) and 30 June 2015 (estimate);
the RSE licensee must report items 1.1 to 1.4 as at 30 June 2014, as this is the most recent consistent date of the information required. It must enter the date 30 June 2014 in item 1.5.
For completeness, please note that the information required in item 1 of Reporting Form SRF 160.1 Defined Benefit Member Flows (SRF 160.1) is required as at the end of the reporting period. This information may therefore differ from the information reported under items 1.2 and 1.4 of SRF 160.0.
In this example, at 30 June 2015, the RSE licensee would report the information required in item 1 on SRF 160.1 as at 30 June 2015 (estimate).
A: For the purposes of APRA’s reporting collection:
The accrued benefits concept aligns with the present value of accrued benefits ‘funding’ measure calculated by or on behalf of an RSE licensee for the purpose of meeting its obligations under paragraph 23(c) of Prudential Standard SPS 160 Defined Benefit Matters and r. 9.27 of the Superannuation Industry (Supervision) Regulations 1994.
The defined benefit members’ benefits concept aligns with the ‘accounting’ measure of defined benefit member liabilities under the Australian Accounting Standards (specifically Australian Accounting Standard AAS 25 Financial Reporting by Superannuation Plans (AAS 25) and Australian Accounting Standards Board Standard AASB 1056 Superannuation Entities (AASB 1056)), which is determined in terms of the present value of accrued benefits.
APRA notes the following:
- Where the effective date of and assumptions underlying the accrued benefits and defined benefit members’ benefits measures are identical, the value reported for each measure may be the same.
- Conversely, where an RSE licensee adopts different methodologies or assumptions for the purposes of ‘funding’ and ‘accounting’ valuations, the value reported for each measure may be different, even where the effective date of the calculations are identical.
With the exception of item 23 of Reporting Form SRF 320.0 Statement of Financial Position (SRF 320.0), when reporting defined benefit members’ benefits in respect of a defined benefit RSE or SAF within the APRA reporting collection, the value reported should align with the defined benefit member liabilities reported in the defined benefit RSE’s or SAF’s financial statements at the reporting date prepared, where applicable, under AAS 25 (or AASB 1056, once adopted by the RSE licensee).
For completeness, when reporting defined benefit members’ benefits in item 23 of SRF 320.0, which is a quarterly and annual form, an RSE licensee must refer to the figures reported in the most recent set of financial statements for that entity at each reporting date.
A: Liabilities which cannot practically be allocated to specific members (e.g. provisions relating to claims that are incurred but not reported) may be reported as ‘age not available’ in item 6 of SRF 160.0, items 5 and 6 of SRF 610.0 and item 5 of SRF 610.2. In such a case, enter zero in the column requesting the number of member accounts and enter the liability value in the column requesting the amount of members’ benefits.
A: An RSE licensee must complete SRF 161.0 in respect of each RSE and defined benefit RSE that contains self-insurance arrangements. This includes RSEs and defined benefit RSEs that no longer self-insure ongoing risks, but retain liability for residual claims emerging.
An RSE licensee must report only the self-insured risk on SRF 161.0. Any externally-acquired insurance must be reported on Reporting Form SRF 250.0 Acquired Insurance (SRF 250.0).
Previous self-insurance arrangements, which are now fully insured externally, should not be reported on SRF 161.0 but should instead be reported on SRF 250.0.
A: Where a self-insurance arrangement is funded solely through self-insurance reserves, with no premium payments collected and no premiums paid to the RSE licensee, the RSE licensee should leave columns 2 to 6 of item 1.3 of SRF 161.0 blank in respect of that self-insurance arrangement.
A: Income protection insurance claims that are in the course of payment at the reporting date, but subject to regular reassessment, must be reported in item 3 on SRF 161.0.
An RSE licensee must report under ‘item 2 – Claims reported’ of SRF 161.0 only those claims that have been reported, but are not yet being paid.
A: Where a reinsurance arrangement is in place and reinsurance premiums are paid from the RSE’s self-insurance reserve, the amount of the premium should be completed in column 3 (Value paid by the RSE) of item 4.2 of SRF 161.0, and the other columns may be left blank where they are not relevant. In other circumstances, e.g. payment direct from an employer sponsor, the relevant columns must be completed.
A: APRA expects RSE licensees to report on SRF 161.0 and SRF 250.0 as follows:
- for ‘aggregate cover’ in respect of income protection insurance, report the monthly amount of the cover (in item 1 in SRF 161.0 or item 1, item 2 and item 3 in SRF 250.0);
- for ‘claims admitted (not yet paid)’ in respect of income protection insurance, where an estimate of the value of an admitted claim is available, report the monthly amount of the claim (in column 4 of item 2.1 in SRF 161.0 or in column 4 of item 5.1 in SRF 250.0). Do not report the aggregate amount of the admitted income protection claim;
- where an estimate of the value of an admitted claim is not available, report the monthly insurance benefit amount under the income protection insurance contract; and
- for ‘claims paid’ in respect of income protection insurance, report the total amount paid during the reporting period (in item 3.1 in SRF 161.0 or item 6.1 in SRF 250.0). Do not report the monthly amount of the income protection claim being paid.
A: No. For the purposes of reporting insurance related flows (item 8 of SRF 330.1 and SRF 330.2), an RSE licensee should report in the manner that the insurance related flows operate in practice. The fair and reasonable allocation requirements under s.99E apply only to reporting of superannuation activities (items 3 to 7).
The instructions to SRF 330.1 and SRF 330.2 state that reporting about superannuation activities in item 3 to item 7 must be in accordance with fair and reasonable allocation processes required under SIS Act s.99E. The instructions do not explicitly state the reporting basis for insurance activities in item 8.
APRA recognises the practical demarcation of superannuation activities and insurance activities within a typical RSE. Therefore insurance related flows are not subject to the fair and reasonable allocation requirements under s.99E.
However, where insurance occurs at the member level, apportionment may be required. In this circumstance, APRA expects insurance related flows to be reported in accordance with the manner in which premiums are deducted from the member’s account in practice.
For example: a member holds interests in both a MySuper account and choice account within an RSE, but the RSE licensee or member has determined that 100% of the member’s insurance premium will be deducted from the member’s MySuper account. Report about all of the insurance related flows in respect of this member on SRF 330.2 (MySuper), to reflect actual practice.
A: All items in SRF 260.0 should be reported. The reporting form relates to the entire reporting period (i.e. 1 July 2012 to 30 June 2013) and therefore, an RSE licensee is attesting that they complied with the relevant provisions of the SIS Act, while they were in force during the reporting period.
A: On SRF 320.0, report defined benefit members’ benefits consistently with the Australian Accounting Standards.
A: Report income and expenses on SRF 331.0 in a manner consistent with income and expenses reporting on SRF 330.0. This may include accruals where consistent with Australian Accounting Standards.
A: Item 18 on SRF 320.0 only relates to those RSE licensees that self-insure insured benefits for members of the RSE i.e. where the RSE licensee takes on the risk underlying the offering of insurance to beneficiaries.
A: APRA expects an RSE licensee to be able to identify rollovers to and from SMSFs.
Where an RSE licensee is unable to report SMSF rollovers according to the instructions to SRF 330.0, the RSE licensee may report reasonable estimates until such time as they have implemented systems and processes to ensure ongoing compliance with the SuperStream requirements. An RSE licensee must be satisfied that the estimates are reasonable and inform APRA Statistics when an estimate is being reported and identify when the information will be able to be reported in accordance with the instructions. An RSE licensee must notify APRA if they intend to change the basis for the estimate to be reported for subsequent reporting periods.
Please note that resubmissions may be required when the more accurate data is available to be reported; an RSE
A: APRA recognises that information related to the Government’s KiwiSaver scheme has not previously been captured. Where an RSE licensee is unable to report KiwiSaver contributions and benefit payments according to the instructions to SRF 330.0, the RSE licensee may report reasonable estimates until such time as they have implemented systems and processes to track their compliance with the KiwiSaver requirements. An RSE licensee must be satisfied that the estimates are reasonable and inform APRA Statistics when an estimate is being reported and identify when the information will be able to be reported in accordance with the instructions. An RSE licensee must notify APRA if they intend to change the basis for the estimate to be reported for subsequent reporting periods. Please note that resubmissions may be required when the more accurate data is available to be reported; an RSE licensee must contact APRA before making any resubmission.
A: For a defined benefit member that has both defined benefit members’ benefits and defined contribution members’ benefits, report the portion that is attributed to that member’s defined benefit members’ benefits in item 5.2 and the portion that is attributed to that member’s defined contribution members’ benefits in item 5.1. Report current values of members’ benefits where available, otherwise where the last triennial review has been adopted in accordance with Australian Accounting Standards, report the value of a member’s defined benefit members’ benefits and defined contribution members’ benefits in accordance with the last triennial review.
A: APRA’s reporting collection has adopted the new legislative definitions relating to fees. Reporting in relation to expenses on SRF 330.0 has been designed to also reflect these new legislative fee definitions. This reflects a change to the approach taken under the previous reporting collection, where APRA required all fee rebate income earned by the RSE to be reported as ‘other investment income’ on forms SRF 100.0, SRF 200.0 and SRF 300.0.
The instructions to SRF 330.0 state: “report expenses gross of any related rebates i.e. do not net related rebates against investment expenses” (refer to page 5).
APRA expects that RSE licensees will identify the type of fee rebate that needs to be reported as being associated with one of the permissible fee types charged i.e. administration, advice, exit, insurance, investment, switching or other fee type. The fee rebate income should be reported as follows:
under Item 6 Other investment income where the fee rebate relates to investment fee type; or
under Item 8 Operating income where the fee rebate relates to administration, advice, exit, switching or other fee type; or
under Item 13 Insurance related inflows where the fee rebate relates to insurance fee type.
For example, as there is no longer a legislative definition of ‘management fee’, where an RSE licensee wishes to report a ‘management fee rebate’, the RSE licensee will have to apportion the ‘management fee’ charged to the RSE into one or more of the permissible fee types, associate the fee rebate with those fee types and report it according to the explanation above.
A: All services undertaken with respect to an RSE both by the RSE licensee and by external service providers must be reported on SRF 331.0.
APRA considers that there is scope for an RSE licensee to apply judgement in determining whether a particular service is undertaken with respect to an RSE or not. Where a service is provided, but it does not affect the operation of the RSE, APRA considers it reasonable for an RSE licensee not to report this service on SRF 331.0. Illustrative examples are set out below.
There is no materiality threshold for reporting on SRF 331.0. However, for the avoidance of doubt, all material outsourcing activities (as defined under Prudential Standard SPS 231 Outsourcing (SPS 231)) must be reported to APRA on SRF 331.0. APRA recognises that in some cases it is difficult to judge whether or not a particular service should be reported. In such a case, APRA supports an RSE licensee determining that all services should be reported on SRF 331.0, even where this gives rise to a lengthy submission.
- RSE licensee A operates RSE A and engages a technician to repair photocopying equipment used by RSE licensee staff. The RSE licensee determines that the operations of RSE A are not impacted by this arrangement. It therefore applies its judgement to exclude this arrangement from item 2 of SRF 331.0.
- RSE licensee B operates RSE B and engages an actuary to undertake a one-off asset-liability modelling exercise in respect of RSE B. The service provided by the actuary is one-off in nature and the engagement is not on a continuing basis. As a result, the RSE licensee determines that this arrangement is not a material outsourcing arrangement under SPS 231. Despite this, the RSE licensee recognises that the actuary has been engaged to provide services with respect to RSE B and it reports this arrangement under item 2 of SRF 331.0.
A: Where the RSE licensee provides, or an external service provider is engaged to provide, multiple services with respect to an RSE, the RSE licensee must report each type of service, split by role type, on separate rows in items 1 and 2 of SRF 331.0.
In practice, this means where:
- the RSE licensee is the service provider to the RSE (item 1):
- complete items 1.1 and 1.2, columns 1 to 4 in respect of each role that the RSE licensee performs with respect to the RSE; and
- where possible, report the expense associated with each role in items 1.1 and 1.2, column 3. Where an explicit breakdown of expense is not available, it is APRA’s expectation that the RSE licensee should apportion the expense by role type on a basis that it considers reasonable; and
- the service relates to an external service provider (item 2):
- complete items 2.1 and 2.2, columns 1 to 10 in respect of each role that the external service provider performs with respect to the RSE; and
- where possible, report the expense associated with each role in items 2.1 and 2.2, column 8. Where an explicit breakdown of expense is not available, APRA expects that the RSE licensee will apportion the expense by role type on a basis that it considers reasonable, in consultation with the service provider where necessary.
- In the unlikely event that an RSE licensee is not able to apportion the expense by role type on a basis that it considers reasonable, report the entire expense associated with that external service provider in the row that corresponds to the primary service provided. Report zero expense in each of the other rows for this service provider, to avoid a mandatory D2A validation.
- For example, where the external administrator is also a service provider of activities other than administration, and the RSE licensee has consulted with the administrator, but has not been able to obtain or form a view on a reasonable breakdown of the expense associated with each of the services it provides, the RSE licensee should report the entire expense in column 8 of the row corresponding to the primary service provided – in this case, administration – and enter zeros in column 8 of each of the other rows associated with this service provider.
A: SRF 520.0 is required only to be reported to APRA as specified in SRS 520.0. APRA’s view is that it would be prudent for an RSE licensee to annually check that the information previously provided to APRA remains complete and correct. Submission of SRF 520.0 on an annual basis, however, is not mandatory. APRA expects to facilitate the submission of SRF 520.0 through the pre-population of key information previously provided to it. SRF 520.0 is not subject to reasonable or limited assurance audit.
A: Report only item 3 and item 6 on SRF 530.1 on a look through basis. This means that item 1, item 2, item 4 and item 5 in SRF 530.1 are to be reported on a non-look through basis. There is an error in the instructions in respect of item 6. The instructions incorrectly refer to reporting only column 4 to column 9 of item 6 on a look through basis. Item 6 in its entirety must be reported on a look through basis. APRA will formally amend the instructions to SRF 530.1 to reflect this position in due course.
A: The data collection does not attempt to collect details of the ‘net assets available to pay members’ benefits in respect of a MySuper product’. The closest information most closely matching this would be the members’ benefits for members accounts reported in column 2 of item 4 on SRF 610.2 at the end of the annual reporting period.
A: Column 1 to column 4 inclusive on SRF 533.0 must be completed using information available about the asset allocation of the investment option (as required in the investment strategy).Column 5 to column 8 inclusive, however, must only be completed where the asset allocation approach for the investment option involves the use of ranges. APRA expects that where a strategic asset allocation approach is not used, that an RSE licensee would still be able to report a benchmark allocation.
A: Look-through in APRA’s collection is where information about the underlying investment in an investment vehicle must be reported. This involves looking through cascading trusts to the first non-connected entity and reporting the ultimate asset class in which the investment is held. An illustrative example is provided in the instructions to SRF 532.0.
A: The look through reporting requirements must be complied with regardless of whether the entity in which the RSE is invested is APRA-regulated or not.
A: APRA originally announced that SRF 533.0 and SRF 702.0 would commence for select investment options for periods ending on or after 1 July 2014.
In light of feedback received on final SRF 533.0 and draft SRF 702.0, APRA has decided to reconsider the requirements of SRF 533.0 and SRF 702.0 as they apply to select investment options as part of future consultation on reporting related to choice product dashboard requirements. This will allow for alignment between the final requirements regarding the product dashboard for choice products and APRA’s reporting requirements for select investment options. The commencement dates for these forms will be confirmed at this time.
Should the requirements of SRF 533.0 change in respect of select investment options as a result of this further consultation, APRA will amend existing SRF 533.0 accordingly.
A: Where an investment option has RSE reserves invested into it, the investment option satisfies the criteria for a select investment option and must be reported on SRF 001.0 and SRF 601.0.
The purpose of item 7 on SRF 601.0 is to capture all RSE reserves and the investment options into which they are invested.
If an RSE licensee finds that a reserve is invested into an investment option that is not reported as a select investment option on SRF 001.0 or SRF 601.0, these forms must be resubmitted with details of those investment options.
A: When reporting indirectly held investments on SRF 530.1 and SRF 530.0, apportion the market value of any derivative contracts within the indirectly held investment to the asset class type(s) to which the derivatives relate. The apportionment will enable the net asset value of the indirectly held investment to be reported.
If derivative contracts are used within an indirectly held investment to hedge currency exposure, report the percentage of the indirectly held investment’s net asset exposure that is currency hedged (refer to column 9 of item 3 on SRF 530.0 and to column 5 of item 3 on SRF 530.1).
Do not report derivative contracts for directly held investments on SRF 530.1 and SRF 530.0. Directly held derivatives must be reported on Reporting Form SRF 534.0 Derivative Financial Instruments from 1 July 2014.
The above applies to RSE level reporting only. Refer to FAQ 97 for reporting about derivative contracts in respect of MySuper investment options on Reporting Form SRF 533.0 Asset Allocation.
A: APRA recognises that an RSE licensee may not always have detailed information available about the investment flows of an investment vehicle to report flows by a combination of asset class, asset domicile and asset listing.
APRA encourages RSE licensees to complete these items on a look-through basis to the extent possible. Where an RSE licensee’s investment managers are presently reporting under pre-negotiated service arrangements which do not provide this level of detail, the RSE licensee may report the items on an apportionment basis, as outlined in the instructions to SRF 530.1 and SRF 531.0.
A: Australian Accounting Standards are expected to be adopted for the purposes of converting assets, liabilities, income and expenses that are in currencies other than AUD to AUD.
For APRA reporting purposes, an RSE licensee may continue to apply the Australian Accounting Standards when converting income and expenses to AUD but is to convert assets and liabilities using the mid-point rate as at the end of the reporting date.
A: When reporting the relevant asset class of investments on a look-through basis, APRA expects an RSE licensee to seek information about the actual holdings of the first non-associated entity and identify the asset class(es) of those holdings. In this context, cash in an equity portfolio would be reported as cash.
A: In order to ensure consistency of reporting within D2A, the following items on SRF 530.0 and SRF 532.0 have been updated to include an additional drop down item - ‘life company other’:
- SRF 530.0 item 3, column 1; item 4.1, column 4; item 4.2, column 4; and item 4.3, column 4 (investment vehicle type); and
- SRF 532.0 item 2, column 3 (investment vehicle type); and item 3, column 6 (type of underlying investment vehicle).
Other minor revisions to SRS 530.1 and SRS 533.0, relevant for reporting under the other investments-related reporting standards, will be formally incorporated in SRS 530.0, SRS 531.0 and SRS 532.0 in due course.
A: The reporting instructions to SRF 330.0 anticipate alignment between these items at the RSE level. In the majority of cases, this alignment will hold. However, APRA recognises that the alignment anticipated in the reporting instructions may not be possible where a complex investment structure is in place within an RSE, due to the look-through requirements of the investment reporting forms.
A:In the majority of cases, investment income and gains/losses reported in item 3 on SRF 330.2 will equal the sum of total investment income in item 3.1 column 7 and total gains /losses in item 3.1 column 10 on SRF 533.0. However, APRA recognises that this alignment may not be possible where a complex investment structure is in place within a MySuper product, due to the look-through requirements of the investment reporting forms.
A: No, APRA does not have any current intention to change the asset class types and sub-classes, nor the investment vehicle types, within its existing reporting framework. Should this position change, APRA’s regular approach to consulting with the superannuation industry would apply.APRA sought feedback from the superannuation industry in relation to asset class information as part of its consultation on revisions to the select investment option reporting requirements, which closed on 15 September 2014. The outcomes of this consultation are expected to be communicated to the superannuation industry in March 2015.
A: The specific instructions to SRF 532.0 state that an RSE licensee must report large exposures only on SRF 532.0. A large exposure means an investment that represents at least one per cent of the assets of the RSE.
APRA acknowledges feedback received from industry participants, outlining practical difficulties with this requirement for quarterly submissions.
Industry participants have submitted that, in many cases, the value of assets of the RSE is not calculated and reconciled until the mid-point between the reporting period end and the reporting due date, given that the assets of the RSE comprise total investments plus accounting assets. Accounting assets are calculated amounts, which are not generally immediately available at reporting period end. This means that in certain cases, RSE licensees are not able to determine large exposure thresholds until late in the reporting due period, creating challenges for the timely submission of information under SRF 532.0.
APRA has considered the concerns noted by industry participants, and the purpose of the information collected on SRF 532.0, and will accept an RSE licensee’s determination of the RSE level large exposure threshold based on ‘total investments’ rather than ‘total assets’ of the RSE.
APRA will consider revising Reporting Standard SRS 532.0 Investment Exposure Concentrations in this respect, and will communicate its decision in due course. In the meantime, APRA will adjust the D2A validation rules to reflect this flexible approach.
A: APRA has identified an error in the instructions to Reporting Standard SRS 602.0 Wind-up (SRS 602.0), under the section on ‘Notifying APRA of Wind up’.
The references under that section, to SIS Regulations rr. 11.07 (3) and 11.07(4) are incorrect. The correct references are SIS Regulations rr. 11.07 (6) and 11.07(7).
APRA will amend the instructions to SRS 602.0 in due course, to accurately reflect the correct SIS Regulations.
A: An RSE licensee must refer to SRS 602.0 for APRA’s reporting requirements in relation to an RSE in wind up.
A: Item 3.3 is intended to cover the situation where a single member account includes interests in both the taxed phase and the tax-free phase. An example would be a member in ‘transition-to-retirement’ that has both taxed and tax-free interests in a single account. Where a single account member has interests in the taxed phase (an accumulation interest) and in the tax-free phase (a pension interest), the value of members’ benefits of each interest must be reported as two separate accounts i.e. the value of members’ benefits for the taxed phase interest must be reported in column 2 of item 3.3.1 and the value of members’ benefits for the tax-free phase must be reported in column 2 of item 3.3.2.
A: If regular income stream payments are being paid to the member as a result of that member satisfying a condition of release to enable payment of that pension income stream/benefit, APRA expects those amounts to be reported as a pension benefit. Cash benefit payments that are chosen to be taken as a lump sum must be reported as a lump sum benefit since it does not form part of the regular income stream of that member.
A: SRF 610.0 requires information about all member accounts in the RSE to be reported in item 5. Only information about those member accounts from which a pension benefit payment is being drawn must be reported in item 6. When reporting members’ benefits in item 6 column 6, identify those member accounts from which a pension benefit payment is being drawn and report the value of members’ benefits as at the end of the reporting period for those member accounts. The members’ benefits that are reported in item 6 column 6 (for member accounts drawing a pension benefit payment) must also be reflected when reporting members’ benefits item 5 column 5 (for all member accounts).
Example: an RSE has ten member accounts - four member accounts (with members’ benefits of $40) which are drawing a pension benefit payment and six member accounts (with members’ benefits of $60) which are not. Report all 10 member accounts (with members’ benefits of $100) in item 5 and report 4 member accounts (with members’ benefits of $40) in item 6.
A: A MySuper interest that is a result of member investment choice reflects a member who has lodged with the RSE licensee a direction about the investment of that member’s benefits. The direction may include express investment instructions, a completed application form or a completed member investment choice form. The member may previously have been treated as a member in the RSE’s default investment option (with or without providing a direction to the RSE licensee). For such a member, once a direction has been lodged with the RSE licensee, in practical terms, there may be no change to that member’s investment. Regardless of the amount that the member has directed, which could be up to and including 100% of the member’s benefits, APRA expects such members to be reported in this data item.
A: Reporting Practice Guide SRPG 700 – Superannuation Disclosure Reporting provides guidance to RSE licensees in relation to APRA’s requirements for the reporting of information that is also required to be disclosed under the Corporations Act 2001 and Corporations Regulations 2001. SRPG 700 covers SRS 700.0, SRS 702.0 and SRS 703.0 and can be accessed here.
A: The statement of fees and costs should be reported as a prospective figure i.e. the estimated fees and costs that the RSE licensee expects for the MySuper product. This aligns with the intent behind Corporations Act 2001, s. 1017BA(1)(c) and Corporations Regulations 2001, reg 7.9.07W(4), which require RSE licensees to update fee and cost information, on the product dashboard, within 14 days after a change in fees and costs.
As such, the statement of fees and costs to be reported as at 31 December 2013 submission should be based on the estimated fee and cost information for the period ending 30 June 2014, annualised from 1 July 2013. For subsequent periods, item 4 should be based on the estimated fee and cost information annualised for the following year (e.g. for the year to 30 June 2015 for SRF 700.0 submitted as at 30 June 2014). The instructions to SRF 700.0 will be updated in due course to confirm this requirement.
A: Where information required under Reporting Standard SRS 700.0 Product Dashboard is changed such that a product dashboard is required by law to be updated (refer to section 1017BA(1) of the Corporations Act 2001), an RSE licensee is required to submit a new, ad-hoc SRF 700.0 return to APRA within 28 calendar days after the update to the product dashboard takes effect. Please notify APRA as soon as practicable of any changes to a MySuper product dashboard via email@example.com to allow for the timely allocation of the ad-hoc return.
An illustrative example of the application of look-through is provided in the instructions to Reporting Standard SRS 532.0 Investment Exposure Concentrations.
A: On 5 December 2013, ASIC issued a class order [CO 13/1534] to defer the commencement of s. 1017D of the Corporations Act 2001 to the extent that the provision requires the trustee to comply with paragraph 7.9.20(1)(o) of the Corporations Regulations 2001, which means that the new fee disclosure requirements will not commence until 1 July 2014.As Reporting Standard SRS 703.0 Fees Disclosed (SRS 703.0) collects information about the fees for a MySuper product as they are disclosed in the PDS, SRS 703.0 will commence when the disclosure requirements start on 1 July 2014. This means that RSE licensees will be required to report the disclosed fees for each MySuper product no later than 28 July 2014. The content of SRS 703.0 has not otherwise changed.Updated SRS 703.0 (reflecting the deferred commencement date) is available on the APRA website.
A: The Superannuation Industry (Supervision) Act 1993 and Superannuation Industry (Supervision) Regulations 1994 specify that a member must satisfy at least one condition of release in order to be eligible to withdraw members’ benefits. As such, APRA would expect the RSE licensee to be able to satisfy itself that it has sufficient evidence of the condition of release being met before commencing a pension in respect of a member, regardless of whether there are other reporting or disclosure obligations which require the provision of information about the condition of release that has been met.
A: Where a pension account commenced post 1 July 2013, and that pension account is subsequently rolled over from one RSE to another RSE, the new RSE licensee should ensure that the condition of release information is obtained from the previous RSE licensee for the purposes of reporting the new pension account under its trusteeship on SRF 710.0. Where a pension account commenced prior to 1 July 2013, and that pension account is subsequently rolled over from one RSE to another RSE, the new RSE licensee should ensure that the condition of release information is obtained from the previous RSE licensee for the purposes of reporting the new pension account under its trusteeship on SRF 710.0. However, if this information is not available from the previous RSE licensee, the new RSE licensee may report ‘other condition of release’ for the purposes of reporting the new pension account under its trusteeship on SRF 710.0.
A: APRA has identified an error in the definition of ‘lost member’ on SRF 710.0. The definition to report about a $2000 threshold for a lost member is incorrect. For the purposes of reporting on SRF 710.0, a lost member represents a member whose benefit payments were made to a beneficiary based on satisfaction of the lost member under $200 condition of release, within the meaning given in SIS Regulations, Schedule 1.APRA will formally amend the instructions to reflect this position in due course.
A: In this scenario, item 1.4 should be reported as ‘yes’, item 1.4.1 should be reported as ‘3’ (reflecting the 3 year period for non-executive directors) and item 1.4.2 should either be left blank or reported as zero. When the form is lodged, the RSE licensee will be asked to provide an explanation for the absence of a number in item 1.4.2.
A: SRF 600.0 applies from 1 July 2013. Information reported on SRF 600.0 is also required for the purposes of ASIC. Whilst the remuneration information collected in SRF 600.0 is not tied to the disclosure requirements relating to remuneration, SRF 600.0 is not inconsistent with the disclosure requirements relating to remuneration. Remuneration information on SRF 600.0 is to be reported in accordance with the instructions to SRF 600.0.
A: APRA has identified an error in the instructions to Reporting Standard SRS 601.0 Profile and Structure (RSE) (SRS 601.0), under the section on ‘Reporting level’.
The reference to MySuper product in that section is incorrect. The correct reporting levels are RSE, defined benefit RSE, pooled superannuation trust (PST) and eligible rollover fund (ERF).
APRA will amend the instructions to SRS 601.0 in due course, to accurately reflect the correct reporting levels.
A: Yes. Item 6.2 of SRF 601.0 must be completed with reference to the existing definition of a select investment option, set out in the Interpretation section on pages 6 and 7 of the instructions to SRF 601.0.
To reduce the reporting burden on RSE licensees while APRA consults further on the definition of and reporting requirements for select investment options, APRA has temporarily removed the requirement to report select investment options on Reporting Form SRF 001.0 Profile and Structure (Baseline) (SRF 001.0). SRF 001.0 is used to allocate the correct reporting forms to each RSE licensee within D2A.
APRA still requires RSE licensees to report information in respect of select investment options, under the existing definition, under SRF 601.0 while this consultation is ongoing. This is because the information collected under SRF 601.0 is required for prudential purposes.
APRA’s select investment option reporting consultation is open from 7 July 2014 until 15 September 2014. Any changes made to the definition of a select investment option as a result of this consultation will be reflected in SRF 601.0. Changes to the select investment option reporting requirements are expected to take effect from 1 July 2015.
A: APRA will amend the instructions to Reporting Standard SRS 711.0 SuperStream Benchmarking Measures (SRS 711.0) which has a deferred commencement date of 1 July 2015 (see APRA letter dated 27 May 2014). The revised SRS 711.0 will include minor amendments to the instructions to remove references to the number of transactions reported in SRS 711.0 corresponding to the transaction values reported in Reporting Standard SRS 330.0 Statement of Financial Performance (SRS 330.0). This change is necessary because SRS 711.0 collects data on the number of transactions processed on a discrete quarterly basis, whereas SRS 330.0 collects data on the value of transactions processed on a year to date basis.
The amendments apply only in respect of item 1 (rollover transactions into the RSE), item 2 (rollover transactions out of the RSE) and item 5 (contribution transactions into the RSE).
A: Revisions to SRS 320.0, SRS 330.0 and SRS 530.1 that are also relevant for reporting by small APRA funds will be formally incorporated in SRS 800.0 and SRS 801.0 before 30 June 2014.
A: APRA released the approved form for application for authorisation to operate a superannuation fund as an eligible rollover fund on 12 December 2012. It can be accessed at https://extranet.apra.gov.au/ using an Auskey issued to an RSE licensee.
A: APRA released the approved form for application for authorisation to offer a MySuper product on 12 December 2012. It can be accessed at https://extranet.apra.gov.au/ using an Auskey issued to an RSE licensee. APRA also released the determined version of Prudential Standard SPS 410 MySuper Transition on 12 December 2012.
A: Entities can submit draft applications to APRA at any time.
A: Yes, an RSE licensee may deduct from member accounts an amount that reflects the insurance premium that is attributable to each member. That premium may reflect the characteristics of the member such as age and occupation, and may also reflect the member's choice of coverage.
A: A lifecycle product may have as many different investment strategies between age cohorts as the RSE licensee wishes, so long as no more than four different investment fees are applied: see s. 29VA(9) of the Superannuation Industry (Supervision) Act 1993.
A: The definition of an accrued default amount changed from the initial draft legislation to the final version. Section 20B of the Superannuation Industry (Supervision) Act 1993 defines accrued default amounts.
A: Under s. 29WA of the Superannuation Industry (Supervision) Act 1993, RSE licensees will be required to pay the contributions of all members into a MySuper product unless a member gives the RSE licensee an election in writing that the contribution is to be paid into one or more specified choice products. Section 29WA applies to contributions received on or after 1 January 2014. Prior to that date, RSE licensees will be able to continue paying contributions into non-MySuper products.
A: The RSE licensee may choose to start accepting relevant contributions into MySuper from the date of authorisation or 1 July 2013, whichever is the later, but must place all relevant contributions into My Super from 1 January 2014.
A: APRA expects that an RSE licensee who does not expect to have an authorised MySuper product as at 1 January 2014 will, as soon as possible, inform all employer sponsors that the RSE will be unable to receive default contributions from 1 January 2014 in the absence of all applicable members completing ‘choice’ documentation. Employers should be advised, within sufficient time, to make necessary arrangements to identify a fund that is authorised to offer a MySuper product into which they can make default contributions from that date.