Frequently Asked Questions - Superannuation Data Transformation

The returns for the historical data collection will be allocated as individual returns for each reporting period (quarter or year) as relevant to that reporting standard.
 

APRA expects that data will be reported for transactions that occurred during the reporting period for each historical reporting period. 

APRA expects RSE licensees to report in SRF 251.0 table 1 information about all insurance policies which:

1. were in force at any time during the reporting period ending 30 June 2021 or in the 5 years prior to the start of the reporting period; or
2. for which one or more of the following activities occurred during the reporting period ending 30 June 2021 or in the 5 years prior to the start of the reporting period:

a.    premiums were paid to the insurer; or
b.    claims were received, processed or paid.

RSE licensees will need to validate their own data to ensure the relevant historical data is reported for each insurance cluster. 

APRA will verify the population post-submission and any inconsistencies will require a resubmission of the relevant form. 

APRA expects that historical data will be reported under SRS 550.0 Asset Allocation and SRS 705.1 Investment Performance and Objectives for products, investment menus and investment options that have a start date prior to  30 June 2021 and do not have an end date at the due date of the historical data.

APRA does not expect historical data to be submitted for a product, menu or investment option that has been wound up prior to the historical data submission deadline.

If any investment options are transferred or continued in a new product, the historical data for these options still needs to be reported.

RSE licensees will need to validate their own data to ensure the relevant historical data is accurately reported for each product, menu, or investment option. 

APRA will verify data post-submission and any inconsistencies will require a resubmission of the relevant form. 

Where there has been a change in the MySuper product structure over the historical period, for example from single strategy to lifecycle strategy, APRA expects the RSE licensee to report historical data for the product for each period in line with the structure at that time. 

In some cases, this may mean that RSE licensees are required to report additional investment options on SRF 605.0 with an end date prior to 30 June 2021.

Where a change occurred mid-quarter, APRA expects RSE licensees to report each investment option for the portion of the quarter the investment option was in use only.

APRA does not otherwise expect RSE licensees to report historical data for a product, menu or investment option that has been wound up prior to the historical data submission deadline.

APRA has allocated returns for each historical period and expects RSE licensees to submit data for each period in the relevant return.

APRA expects that if an investment option was reported as a trustee-directed product as at 30 June 2021 that historical data is reported by 28 February 2022, regardless of when the investment option was classified as a trustee-directed product. 

APRA expects that where an RSE licensee opts to report historical data in two stages that the RSE licensee will:

• first submit data for MySuper products and trustee-directed products by 28 February 2022; and 
   
• then complete a resubmission of each return for each period for the full reporting population (for all other products, menus and investment options in addition to the MySuper products and trustee-directed products) by 28 July 2022.

The resubmissions need to include the MySuper and trustee-directed product data as well as the new data relating to all other products, menus and investment options.

RSE licensees that have the full population of historical data available for SRF 550.0 and SRS 705.1 can report the full historical data in February 2022, and are encouraged to do so.

APRA does not expect RSE licensees to submit forms with incorrect or dummy data.

APRA expects that the entire reporting form will be submitted, however RSE licensees are only required to report the required historical reporting items.

RSE licensees are expected to manually validate “blank” tables, where a submission is not required. Please refer to the APRA Connect Guide, section 6.5 Forms with no data for more information on how to submit returns where only a subset of forms is required.

APRA expects reporting for all insurance policies that have had claim, payment or premium activity during the reporting period. APRA also expects reporting for any insurance policies that may have ceased during the reporting period and for any insurance policies that may have been impacted by merger activity during the reporting period.

For each year of historical reporting under SRF 251.2, APRA expects that claim, payment and premium activity would be reported for the year in which the activity occurred.

For example, a premium paid in 2019 for cover in the 2018 year would be reported in the 2019 historical submission.

Accepted file submission formats are as noted on the APRA Connect technical specifications page on the APRA website.

Accepted submission formats for the Superannuation Data Transformation Phase 1 reporting standards are: Manual entry, XML, and Excel.

Generally, entities are able to make this choice based on their own organisation’s needs and technical capabilities; however if the data being uploaded exceeds the row limits allowed in Excel then entities should use XML.

Further APRA Connect information and support material is available on the APRA website at: APRA Connect support material.

On 7 October 2022, APRA provided an extension to the reporting due date in respect of some investment options:

1.    For the following Superannuation Reporting Standards:

• SRS 550.0 Asset Allocation (SRS 550.0); 
• SRS 705.0 Components of net return (SRS 705.0); and
• SRS 705.1 Investment Performance and Objectives (SRS 705.1).

APRA extended the reporting due date from 28 days after the quarter end to 35 days after the quarter end, in respect of all investment options for periods ending 30 September 2022, 31 December 2022, and 31 March 2023. 

2.    For the following Superannuation Reporting Standards:

• SRS 550.0 Asset Allocation; 
• SRS 705.0 Components of net return;
• SRS 705.1 Investment Performance and Objectives; and
• SRS 706.0 Fees and Costs (SRS 706.0)

APRA extended the reporting due date from 28 October 2022 to 28 July 2023 for investment options which have an Investment Option Category Type of:

• Direct Term deposit
• Direct Fixed Income Instrument
• Direct Shares
• Direct Hybrid Security
• Direct Listed Investment Company
• Direct Exchange Traded Product

APRA expects RSE licensees to have plans and processes in place to accurately report all investment option data prior to 30 June 2023. RSE licensees that are in a position to provide complete investment option reporting earlier are encouraged to do so.

For all investment options yet to be reported under the staged implementation, other than these six types of direct investment options:

• the due date for historical data required under SRS 550.0 and SRS 705.1, and for periods up to and including 30 June 2022 remains 28 October 2022. 
   
• as per item one above, the due date for the reporting period ending 30 September 2022 for these three reporting standards is 4 November 2022.

For reporting under SRF 550.1 Investments and Currency Exposure and SRF 550.2 Derivatives and Counterparties for the period ending 30 September 2022, the due date is 4 November 2022. 

The following table summarises the reporting periods and extended due dates under the Superannuation Data Transformation reporting standards:

Yes. APRA recognises there is a degree of overlap between data to be collected through the new reporting standards and data collected under existing reporting standards.  The existing reporting standards will continue for an initial parallel collection period, primarily to enable APRA to assess data quality for the new reporting standards. Once appropriate quality of reporting under the new framework is achieved, APRA intends to  provide exemptions from reporting obligations and/or revoke reporting standards which require the same data that is to be submitted under the new data collection.

APRA will undertake a separate consultation in late 2021 on proposals for publication of data reported under these reporting standards, including consulting on the confidentiality of the specific data items that APRA intends to publish.

Yes, RSE licensees that are in a position to provide full reporting earlier will be able to do so.

Validation rules for the new reporting standards can be viewed at the APRA Connect Taxonomy Artefacts page. APRA will post alerts via its subscriber list for updates to the Taxonomy Artefacts.

The draft artefacts include the data dictionary, validations, reporting taxonomy and XSD (to validate the structure of XML files). While every effort has been made to ensure accuracy, entities can expect further changes before APRA Connect goes live.

Updated versions of the artefacts will be available prior to the release of the external test environment in June.

APRA expects that all fees and costs will be reported gross of tax to ensure that there is consistency in reporting. For the avoidance of doubt, APRA intends to remove the line ‘consistent with the manner in which they are required to be disclosed in PDS’ in the ‘Reporting basis and unit of measure’ section of Reporting Standard 706.0 Fees and Costs.

APRA intends to consult on specific audit requirements for the new reporting standards as part of the review of the approved audit form under SPS 310 in the second half of 2021. For the 30 June 2021 annual reporting period there are no specific audit requirements beyond those detailed in Part 3 (B) Controls and Compliance in the approved audit form.

The SIS regulation which define a trustee-directed product was made on 5 August 2021. APRA will extend the due date for submission of 30 June 2021 data for trustee-directed products from 30 September 2021 to 28 October 2021 to allow sufficient time to implement reporting. RSE licensees that are in a position to provide the full coverage of reporting earlier are encouraged to do so.

In APRA’s response to consultation the staged implementation approach introduced temporary reduced coverage, with the first year of reporting on products, investment menus and investment options only including data on MySuper and trustee-directed products for the following four reporting forms:

• “SRF 705.0 Components of Net Return” (SRF 705.0)
• “SRF 705.1 Investment Performance and Objectives” (SRF 705.1)  
• “SRF 550.0 Asset Allocation” (SRF 550.0)
• “SRF 706.0 Fees and Costs Disclosed” (SRF 706.0)

RSE licensees must report 30 June 2021 data for MySuper products by 30 September 2021. 

APRA expects that RSE licensees will complete SRS 605.0 RSE Structure, SRS 332.0 Expenses and SRS 550.0 Asset Allocation in respect of any PSTs under their trusteeship.

For each table in SRS 605.0 RSE Structure, an RSE licensee can report a PST as a single row in each table, however where relevant the RSE licensee should report a different investment option for each separately identifiable pool of assets that are within the PST.

RSE licensees must provide APRA with an attestation at the end of each calendar quarter to confirm that there has been no change to the latest information provided for reporting forms SRF 251.3, SRF 605.0 and SRF 706.0 that would require an ad-hoc submission.

Yes, SRS 605.0 RSE Structure (SRS 605.0) return should be submitted before attempting to upload and submit all returns except data under SRS 332.0 Expenses (SRS 332.0). RSE Structure defines:

• Superannuation products
• Investment menus
• Investment options
• Fees and costs arrangements

This sets up each of the entity’s business operations in APRA's system so that they can lodge a range of regulatory returns.

SRS 605.0 needs to be submitted and up-to-date before submitting the returns under:

• SRS 251.0 Insurance Arrangements (SRS 251.0)
• SRS 550.0 Asset Allocation (SRS 550.0)
• SRS 606.0 RSE Profile (SRS 606.0)
• SRS 611.0 Member Accounts (SRS 611.0)
• Attestation 

SRS 605.0 and SRS 606.0 both need to be submitted and up-to-date before submitting the returns under:

• SRS 705.0 Performance Components (SRS 705.0)
• SRS 705.1 Performance Benchmark (SRS 705.1)
• SRS 706.0 Fees and Costs (SRS 706.0)
  
  Summary of changes to Superannuation taxonomy artefactsXLSX58.17 KB

APRA has published the SDT reporting standards with marked up changes here.

APRA has published a log of the changes to all versions of the APRA Connect artefacts issued at APRA Connect Taxonomy Artefacts. The latest version of the artefact file was released on 19 August 2021. 

The log includes:

• Schema: changes to elements, enumerations, etc;
• Validation rules: new or amended validation rules; and
• Rule restrictions: validation rules that have been restricted. 

A summary of taxonomy artefact changes can be found here:

APRA expects RSE licensees to submit a blank return through APRA Connect where the RSE licensee has no data to report on that form.

An RSE licensee can refer to section 6.5 of the APRA Connect Guide for instructions on how to submit forms with no data: APRA Connect support material.

APRA has published a new set of frequently asked questions (FAQs) to provide clarity to RSE licensees on the introduction of trustee directed products (TDPs) into the Government’s Your Future, Your Super performance test: Your Future, Your Super Frequently Asked Questions.

For an ad-hoc submission of SRF 251.3 and SRF 706.0, an RSE licensee should report data for the entire reporting form, including data that has not changed. 

For an ad-hoc submission of SRF 605.0 an RSE licensee is only able to report the data that is new or has changed. The status in column 1 of each table in SRF 605.0 will enable the system to determine whether a row contains new, updated or unchanged data. The whole table can be left blank if all the data is unchanged.

RSE licensees should request a resubmission of forms through APRA Connect. Please refer to section 7.3 of the APRA Connect Guide for instructions on how to request a resubmission. 

With the exception of SRS 605.0 RSE Structure, any requests for a resubmission prior to the due date, or up to 15 days after the due date, will automatically be approved. Requests for resubmission of SRS 605.0 RSE Structure will be assessed and approved manually.

To correct or amend data in SRS 605.0 RSE Structure, an RSE licensee should report an ad-hoc submission by clicking the Create Return button on the Manage Returns page and selecting SRS 605.0 RSE Structure from the Select form set box. The RSE licensee is able to submit only the data that is new or has changed. Any records that have already been registered in the Corporate Profile will trigger validation rules – preventing submission, if the status is New. 

RSE licensees should be aware that there is only functionality in APRA Connect for changes to items but not the removal of items in a resubmission or ad-hoc submission. If a structural reporting error has been made on SRS 605.0, please contact APRA at dataanalytics@apra.gov.au.

APRA intends to release a discussion paper to consult with industry on the publication of data as well as confidential treatment of the data reported to APRA under the new reporting standards in February 2022.

Where an RSE licensee offers Separately Managed Accounts or other MDAs, APRA expects RSE licensees to report each model portfolio offered as one investment option under SRS 605.0 with Investment Option Type ‘Direct’ and Investment Option Category Type ‘Other’. APRA does not expect RSE licensees to report each underlying investment as an investment option.

For each of these investment options, APRA expects the RSE licensee to report:

• the asset allocation targets of the model portfolio under SRS 550.0 Table 1 Strategic Asset Allocation
• the asset allocation of all investments held as at the end of the relevant quarter under SRS 550.0 Table 2 Actual Asset Allocation. 
• the investment return of the model portfolio under SRS 705.0 Components of Net Return.
• the investment objective of the model portfolio, and the investment return of the model portfolio under SRS 705.1 Investment Performance and Objectives. 

APRA intends to consult on the inclusion of an additional Investment Option Type classification under SRS 605.0 to allow RSE licensees to identify these types of investment options as MDAs.

Please refer to APRA’s Letter to RSE licensees: Revocation of superannuation standards for information about APRA’s approach the revocation of Superannuation Reporting Standards (SRS).

APRA is continuing its data quality activities, including for SRS 550.1 Investments and currency exposure and SRS 550.2 Derivatives and counterparties to ensure quality of reporting before ending parallel reporting required under Reporting Standard SRS 530.0 Investments (SRS 530.0) and Reporting Standard SRS 534.0 Derivative Financial Instruments (SRS 534.0). RSE licensees still need to report under SRS 530.0 and SRS 534.0 for the quarter ending 31 December 2022. APRA intends to revoke these reporting standards in early 2023.

APRA intends to publish the September 2022 Quarterly Superannuation Industry Publication and the first Quarterly Product-level Superannuation Statistics in early 2023.

Table 1 of  SRF 251.0 collects information for each group policy held by the RSE as well as individual policies made for individual members. RSE licensees can collate reporting of individual policies that have a common insurer together as a cluster. Please report the number of policies included in the cluster (this would be ‘1’ for group policies). 

It would depend if the member is under the same policy or not. For example, if a member is covered under a group policy but requires additional underwriting to obtain cover, APRA would not expect this to be reported as a separate policy.

If a member requires additional underwriting and ultimately ends up with a new individual policy, this would need to be reported as an individual policy (or as part of a cluster of individual policies).

APRA has listed six occupation categories to describe the type of occupation covered by the policy. RSE licensees should select ‘Yes’ for one or more occupation categories that would be covered under the RSE's occupation definition.

APRA expects that the premiums paid and the claims history for these members would be available to the receiving trustee in order to administer the insurance arrangements. Accordingly, it should be reported by the receiving trustee in the historical data for SRS 251.0.

Not necessarily. The default cover offered indicator relates to the type of cover, not the level of cover. If a member automatically obtained the current type of insurance (for example, upon joining the fund), then the RSE licensee should report ‘Yes’, regardless of whether the member has since increased or decreased the level of cover. See the definition of default cover offered in SRS 101.0 for further detail.

Yes, these members are considered as having default cover offered to them.  For further information, please refer to the definition of ‘Default cover offered’ in Reporting Standard SRS 101.0 0 Definitions for Superannuation Data Collections (see SRS 101.0 under Phase 1 Consultation, Reporting Standards).

APRA expects RSE licensees to report new business or ceased member accounts for any insurance cluster in SRF 251.1 table 1.  

Where a member retains the same insurance cover under a policy, but switches to a different superannuation product, RSE licensees should not include that member in the count for column 6, new Business Member Accounts or column 7, Ceased Member Accounts, as the insurance cover of the member is unchanged. In some cases, this will mean that for a reported row of a combination of product and insurance cluster, Beginning Period Member Accounts plus New Business Member Accounts less Ceased Member Accounts will not reconcile to End Period Member Accounts. For each cluster, and for the table as a whole, APRA expects that these columns will reconcile. 

The RSE licensee should report the period the payment relates to in ‘Insurance Cover Year Date’ column (SRF 251.2, Table 1, Column 3).  APRA expects any payment which relates to multiple years of cover to be split into amounts for each year of cover that it applies.

APRA expects RSE licensees to report claims payment data for SRF 251.2 reflecting when the member has been paid.  

APRA expects RSE licensees to report claim amounts in column 5 'Insurance claim paid amount'. RSE licensees should exclude amounts paid from other sources such as the member balance.

Where the assessment criteria is not readily available:

• APRA’s preference is for RSE licensees to estimate the number of TPD claims by assessment criteria (e.g. based on experience where data is available). In doing so, APRA expects RSE licensees to:

o    provide the estimates under each category of 'Assessment Criteria Total And Permanent Disability Type' for the relevant periods; and

o    provide their methodology of estimation in the free text box provided in ‘Assessment Criteria Other Total And Permanent Disability Description Text’ (column 3, table 5 of SRF 251.2). 

•  If an estimation is not possible, please select ‘Other’ for ‘Assessment Criteria Total And Permanent Disability Type’ and explain why an estimation is not possible in the free text box in the next column in ‘Assessment Criteria Other Total And Permanent Disability Description Text’ (column 3, table 5 of SRF 251.2).

APRA expects that RSE licensees will report withdrawn insurance claims under column 6 of SRF 251.2 table 4 'Insurance Claim Withdrawn Count'. 

APRA expects that RSE licensees will not report withdrawn insurance claims under SRF 251.2 table 5 and that ‘withdrawal’ is not a valid value in column 6 of SRF 251.2 table 5.

RSE licensees can report insurance claims that have been closed under SRF 251.2 table 5, providing that the insurance claim has also been reported under column 9 of SRF 251.2 table 4. For example, an RSE Licensee can report an insurance claim under SRF 251.2 table 5 that has been closed due to lack of communication where the insurance claim has also been reported under column 9 of SRF 251.2 table 4. 

No, age-bands cannot be reported. For table 2 column 3 on SRF 251.3 the individual age of members (as at last birthday) is to be reported. 

Yes, all insurance offerings that are either partially or fully funded by the members’ employer should be included in the amount reported for ‘Insurance Cover Cost Amount’.

In line with the reporting of premiums in SRF 251.2 Insurance payments table 1, APRA expects RSE licensees to report each Insurance Cover Type required in SRF 251.3 table 1 as a separate row so as to apportion the Insurance Cover Cost Amount for each of the insurance cover types in the bundled cover. 

For reporting under SRF 251.3, APRA expects RSE licensees to report each insurance cluster where the default indicator in SRF 251.1 table 1 is reported as ‘Yes’. This includes all group policies, noting that there is no materiality threshold.  

APRA expects that where different premium rates apply to different employer groups, these should be reported as separate rows with a different Insurance Table Identifier for table 1. The same approach should also be adopted for table 2. 

If premium rates are the same for multiple employer groups, then these should be reported as a single row in table 1 of SRF 251.3. 

APRA expects RSE licensees to incorporate variable factors into column 9, ‘Insurance Cover Default Cover Level Salary Percent’ for SRF 251.3 table 2.

If cover incorporates future service, calculate a factor using the assumed retirement age or cover ceasing age as per the benefit design and the member age reported in each row.

If cover incorporates past service, calculate a factor using a representative member who joined the fund/plan at the cover entry age and the member age reported in each row.

For example, where default cover is calculated as future years of service X 15 per cent of salary, for a 30 year old member the future years of service factor would be 35 (65 – 30), and the RSE licensee would report 5.25 in column 9 (35 X 15 per cent).

Where the default level of cover has been expressed as a percentage of salary, RSE licensees should report the annual cost of cover per $1,000 of cover in column 10 ‘Insurance Cover Cost Amount’.
 

SRF 251.3 collects information on insurance premiums disclosed to members on a forward-looking basis. 

APRA expects that tax rebates from insurance premiums as disclosed to members should be reported in SRF 251.3 table 2 column 11 where they apply to all members under the relevant insurance policy. 

Rebates that are dependent on member activity, such as reductions to contributions tax should not be reported under SRF 251.3 table 2 column 11. 

APRA expects RSE licensees to report the ‘Insurance Cover Cost’ amount for Income Protection Insurance Cover as the annual cost per $1000 of monthly insured benefit where the default level of cover has been expressed as a percentage of salary. 

For Life Insurance Cover and Total and Permanent Disability Insurance Cover the ‘Insurance Cover Cost’ should be reported as the annual cost per $1000 of insurance cover where the default level of cover has been expressed as a percentage of salary.  

SRS 332.0 provides that reporting periods for this reporting standard are for each year of income of the entity.

For example, an RSE that has a 31 December year end would report SRS 332.0 for the year ending 31 December, with its submission due on 31 March.

APRA expects RSE licensees to report a row in Table 1 with the name ‘Accounting concepts’ for the purpose of reporting accounting concepts such as depreciation. The total amount of depreciation should be reported in Table 2 with the expense group type ‘Corporate overheads’ and expense type ‘Amortisation And Depreciation’. 

APRA expects other accruals adjustments relating to the provision of goods or services to be reported with the ‘Accruals adjustment’ service provider identifier against the relevant expense group type and expense type.

Expenses relating to the preparation of APRA returns should be included in the expense group ‘Corporate Overheads’ and expense type ‘Other’. The ‘Service Arrangement Inclusions Exclusions Text’ should be used where there is not a relevant category.

Expenses relating to the wages for corporate overheads such as human resources should be included in the expense group ‘Corporate Overheads’ and expense type ‘Other’ with the RSE licensee as the service provider. A description may be provided in ‘Service Arrangement Inclusions Exclusions Text’ if additional context is required. 

Wages for internal teams which provide a service which has an expense type listed should be reported under that category. For example, internal call centre staff wages should be reported as expense group type ‘administration’, expense type ‘call centre’, with the RSE licensee as the service provider.

A one-off Service Arrangement Engagement Type is when there is a discrete piece of work that the service provider has been engaged to complete. An example may include an engagement for legal advice on a specific issue, a one-off IT build, or consulting costs for engagement of specialist advisers on a discrete project. A one-off engagement may continue over one or more reporting periods.

An ongoing Service Arrangement Engagement Type is when there is a continuous arrangement for the ongoing provision of services. For example, ongoing administration services, ongoing software or IT support or ongoing investment management services.

Where the RSE licensees cannot report accruals against specific service provider, APRA expects payments in the reporting period to be reported against the most relevant service provider. Accrual adjustments can be reported against the service provider labelled ‘Accounting concepts’ as per FAQ 332.0c, and classified under the relevant expense group type and expense type. In subsequent reporting periods, if a reversal of an accrual adjustment is required, the reversal should be made against the same ‘Accounting concepts’ line the accrual was mapped to initially.

SRS 332.0 is designed to capture information related to the flow of member money as well as the purpose for the deduction. Data on Director remuneration is reported to APRA under SRS 600.0 ‘Profile and Structure’ (RSE Licensee).    

Where Director fees are paid to an entity rather than to the Director themselves, the entity  should be reported in table 1 ‘Service providers'. Reporting should include the total amount paid to the entity in table 2 against the Service provider Identifier for that entity.

If the receiving entity is captured under one of the other expense type categories such as ‘Payments to trade bodies’, entities should report the amount under that category, with the description in the inclusions/exclusions text being ‘payments in lieu of director fees’. Otherwise, entities should report under the group expense type ‘Trustee office’ and the expense type ‘Directors fees’.

RSE licensees should report the total expense amount in respect of each expense type captured under the relevant service agreement. Where the expense for each service is not specified in the relevant service agreement, the expense amount should be apportioned across the expense categories for which the trustee fee is used.

If payments are made to a connected entity, report the expense with the last connected entity in the look-through chain, please see the worked example. 

Under the staged implementation approach, APRA will permit RSE licensees to report certain information on a best endeavours basis for a defined period of time. The scope of data that may be submitted on a best endeavours basis has been removed from the reporting standard and provided as guidance. Despite this change, there will be no difference in how APRA will administer compliance with reporting of information which can be submitted on a best endeavours basis. 

APRA will permit RSE licensees to complete SRF 332.0 on a best endeavours basis for each reporting period ending on or after 30 June 2021 but before 30 June 2023, except for expenses used for the purpose of the following expense types:

• Marketing related expenses (including: Advertising or Marketing, Existing Member Campaigns, Member Acquisition Campaigns, and all expense types under Marketing And Distribution (expense group));
• Sponsorship;
• Payments Or Donations To Industry Bodies;
• Payments Or Donations To Political Parties; or
• Payments Or Donations To Trade Bodies  .

RSE licensees must report the total expenses for the RSE, and report a service arrangement cost amount for each expense type for which a service is provided to the RSE.

APRA expects RSE licensees to have measures and processes in place to accurately report prior to the submission of data for reporting periods ending on or after 30 June 2023.

Note: In May 2022, APRA extended reporting on a best endeavours basis to periods ending on or before 30 June 2023.    

The intent of SRS 332.0 is to understand how RSE licensees are spending members’ money, and with whom.  Please refer to the SRS 332.0 Expenses Worked Example cover sheet for the look-through diagram and relevant examples.

In classifying expenses on an APRA look-through basis, RSE licensees should classify items based on the purpose for which the RSE licensee spent the money.

Where the service arrangement covers more than one expense type, RSE licensees should apportion the total expense amount between each expense type.

For example, where an RSE licensee has paid an external administrator, the RSE licensee should not report the corporate overheads of the external administrator. This expense should be categorised under each of the relevant administration expense type for which a service is provided.

APRA expects that investment expenses are those expenses classified as investment related expenses in the fund’s financial statements, and which are passed on to members through investment fees.

Therefore, to the extent that the salaries of the internal investment team are an investment expense, APRA would expect these salaries to be reported as an investment management ‘Investment’ expense under SRF 332.0 table 3 investment management expenses with the RSE licensee as the service provider. 

If these expenses are administration or operating expenses, APRA would expect these salaries to be reported as ‘Investment Consulting’, ‘Research’ or other appropriate classifications with the RSE licensee as the service provider. 

For the purpose of reporting under SRS 550.0, APRA expects RSE licensees to calculate the effective exposure for options using the delta adjusted notional value. All other derivatives (e.g. forwards, futures, etc.) should use principal amount.

Under the staged approach, for asset characteristics to be reported on a best endeavours’ basis, where the classification cannot be determined, RSE licensees should report ‘Not Applicable’.

Where an RSE has investments with multiple ratings from two or more rating agencies, the RSE licensee must consistently apply the lowest rating of a single agency whenever the individual ratings conflict for reporting under SRS 550.0 Asset Allocation.

Yes, consistent with current reporting under SRS 530.0 and SRS 533.0, SRS 550.0 pertains to the investments of the fund and excludes receivables and payables.

APRA expects RSE licensees to apply an asset weighted duration using the effective exposure.

APRA expects such arrangements to be classified as ‘Government’. APRA will consider implementing a category to capture these arrangements in the future.

Under the staged implementation approach, APRA will permit RSE licensees to report certain information on a best endeavours basis for a defined period of time. To improve clarity of drafting, the scope of data that may be submitted on a best endeavours basis has been removed from the reporting standard and provided as guidance. Despite this change, there will be no difference in how APRA will administer compliance with reporting of information which can be submitted on a best endeavours basis during the defined period. 

APRA will permit RSE licensees to complete SRF 550.0 table 2 and SRF 550.1 table 1 on a best endeavours basis for certain asset class characteristics for periods ending on or after 30 June 2021 but before 30 June 2023. 

APRA expects RSE licensees to have plans and processes in place to improve reporting classifications.

SRF 550.0 Asset Allocation

The matters which are permitted to be reported on a best endeavours basis for different reporting periods on SRF 550.0 are as follows:

An RSE licensee must report the information required under each table of SRF 550.0. 

For each reporting period ending on or before 31 March 2023, a reduced list of asset class characteristic 1, asset class characteristic 2 and asset class characteristic 3 applies for Table 2 in SRF 550.0: 

• Where the asset class sector type is Cash, Property, Equity or Infrastructure, APRA will permit the reporting of asset class characteristic 1, asset class characteristic 2 and asset class characteristic 3 on a best endeavours basis;  
• Where the asset class sector type is Fixed Income or Alternatives, an RSE licensee must report asset class characteristic 2. APRA will permit the reporting of asset class characteristic 1, asset class characteristic 3 and Modified Duration on a best endeavours basis. 

Note: In May 2022, APRA extended reporting on a best endeavours basis to periods ending on or before 31 March 2023.    

Refer to Appendix A in SRS 550.0: Asset class hierarchy for the asset class characteristics which apply to each asset class sector type.

For each reporting period ending on or after 30 June 2023, an RSE licensee must report the information required under SRF 550.0. For each of these reporting periods, all asset class characteristics apply.

SRF 550.1 Investments and Currency Exposure

The characteristics which are permitted to be reported on a best endeavours basis for different reporting periods on SRF 550.1 are as follows:

For each reporting period ending on or before 31 March 2023, an RSE licensee must report the information required under each table of SRF 550.1. For this period, a reduced list of asset class characteristic 1, asset class characteristic 2 and asset class characteristic 3 applies for Table 1: 

• Where the asset class sector type is Cash, Property, Equity or Infrastructure, APRA will permit the reporting of asset class characteristic 1, asset class characteristic 2 and asset class characteristic 3 on a best endeavours basis. 
• Where the asset class sector type is Fixed Income or Alternatives, an RSE licensee must report asset class characteristic 2. APRA will permit the reporting of asset class characteristic 1, asset class characteristic 3 and Modified Duration on a best endeavours basis. 

Note: In May 2022, APRA extended reporting on a best endeavours basis to periods ending on or before 31 March 2023.    

Refer to Appendix A: Asset class hierarchy in SRS 550.0 for the asset class characteristics which apply to each asset class sector type.

For each reporting period ending on or after 30 June 2023, an RSE licensee must report the information required under SRF 550.1. For each of these reporting periods, all asset class characteristics apply.
 

APRA expects RSE licensees to report the benchmark allocation to each strategic sector set as part of the board approved strategic asset allocation, reporting ‘Not Applicable’ for the strategic subsector fields. The sum of these allocations, excluding allocations to ‘Currency Exposure’, must equal 100%.

A strategic subsector allocation should be reported where the RSE licensee puts in place limits or targets on sectors within the strategic sector allocation, which are set by the board, committee or individual with investment delegations under the investment governance framework of the RSE licensee. The RSE licensee should report each subsector allocation on an additional row, with the strategic subsector information reported in columns 6 – 9 and the information of the strategic sector to which it underlies reported in columns 1 – 5.

The sum of the benchmark allocations for each strategic subsector should generally equal the benchmark allocation of its parent strategic sector.

Refer to the SRS 550 worked example available on the APRA Superannuation Data Transformation FAQ landing page for an example illustrating how APRA expects sector and subsector allocations to be reported.

APRA expects RSE licensees to report the currency hedging ratio percent for strategic sector allocations where the domicile is ‘Not Specified’ in Table 1 of SRF 550.0 as the target currency hedging proportion for any internationally domiciled assets within that allocation. For example, for an allocation to the strategic sector of Equity, with the listing type of Listed and domicile of ‘Not Specified’, a currency hedging ratio of 50 percent would be interpreted as a target currency hedging ratio of 50 percent of those international domicile assets within the listed equity allocation.

APRA expects RSE licensees to report information relating to investment options underlying a MySuper product or trustee-directed product, for the reporting periods ending on or after 30 September 2021 but before 30 June 2022, within 28 days after the end of the relevant reporting period in accordance with paragraph 12 of SRS 550.0.

APRA intends to revise footnote 6 when the reporting standard is next determined to read:

^{6 For the quarter ending 30 June 2021: due by the date in paragraphs 10, 11 or 18, as applicable. For the quarters ending 30 September 2021, 31 December 2021 and 31 March 2022: due by the date in paragraphs 12 or 18, as applicable.} 

APRA expects RSE licensees to report benchmark allocations on SRS 550.0 Table 1 Strategic Asset Allocation as the allocation targets RSE licensees have adopted to meet the investment objectives of their investment strategy under Prudential Standard SPS 530 Investment Governance (SPS 530). 

Paragraph 20(a) of SPS 530 states: 

An RSE licensee must, at a minimum, determine for each investment strategy for an investment option that includes multiple assets and/or asset classes:

a) asset allocation targets and ranges that are appropriate to the investment objectives of the investment option;

As such, APRA expects strategic asset allocation targets to be reported for each investment option that invests in multiple asset classes in SRS 550.0.

Prudential Practice Guide SPG 530 Investment Governance (paragraphs 40 and 41) provides further guidance that irrespective of asset allocation approach (e.g. dynamic asset allocation), APRA expects RSE licensees to establish formal approaches to determining asset allocations including establishing initial target asset allocations and ranges as required under SPS 530. 

In such cases, APRA expects RSE licensees to take the same approach as it would for reporting physical holdings of foreign currency, and to report foreign exchange derivatives held for the purpose of gaining exposure to the underlying asset in Table 2 of SRF 550.0 with Asset Class Sector Type as Cash and Investment Domicile Type as International Domicile.

The sum of the physical exposure and the synthetic exposure (reported in Table 2, column 14) should equal the value of investments (reported in Table 2, column 13).

APRA expects that when reporting actual asset allocation exposures under SRF 550.0 table 2, RSE licensees will report the combination of fields relating to strategic sector that aligns to a combination reported in SRF 550.0 table 1 for:

• Investment Strategic Sector Type
• Investment Strategic Sector Listing Type
• Investment Strategic Sector Domicile Type
• Investment Strategic Sector International Economy Type

Conversely, APRA expects that each combination reported under SRF 550.0 table 1 are also reported under SRF 550.0 table 2. APRA understands an RSE licensee may report no investment exposures under a strategic sector where that strategic sector’s benchmark allocation is 0%, or close to 0%.

APRA expects RSE licensees to report either a benchmark allocation to currency exposure or currency hedging ratios in SRF 550.0 table 1, with the approach determined by reference to the RSE licensee’s investment strategy.

Where an RSE licensee sets currency exposure targets at the investment option level, report the benchmark allocation to currency exposure in column 10 using Currency Exposure as the ‘Strategic Sector’ in column 2. 

Where an RSE licensee sets currency exposure targets or hedging ratios at the asset class level, it should report a currency hedging ratio (%) in column 13 for each relevant internationally domiciled asset class. 

The table below summarises the reporting approach for different scenarios: 

Where investment option level currency exposure is not reported in SRF 550.0 table 1 column 10, and the RSE licensee targets a fully hedged international exposure, the RSE licensee must report 100 per cent in SRF 550.0 table 1 column 13.

APRA expects that modified duration information should be attainable for each combination of fixed income characteristics reported where the investments are directly held (meaning investments made by the RSE in its own name, including investments held by a custodian as per the definition in SRS 101.0).

APRA expects RSE licensees to know the risks in its fixed income portfolios, including interest rate risk (proxied by modified duration). APRA expects that RSE licensees monitor modified duration at least at the portfolio level. 

APRA intends to revise the instructions for reporting modified duration to read as per the table below effective from the 30 June 2022 reporting period. 

This FAQ should be considered in conjunction with FAQ 550.0j, which extends the best endeavours reporting of modified duration to periods ending on or before 31 March 2023. 

While RSE licensees must report modified duration for the ‘Fixed Income’ asset class sector exposures within the ‘Fixed Income’, ‘Fixed Income Excluding Credit’ and ‘Credit’ strategic sector allocations, they should also report modified duration for other investment exposures where relevant.

If a derivative is held for the purpose of either gaining or reducing exposure to an underlying asset class: 

• report the synthetic exposure in column 14 against the underlying asset class sector type; 
• report the effective exposure in column 13 which comprises the physical securities, synthetic exposures and the market value of the derivatives; and
• report the corresponding cash offset value (i.e., inverse of the notional principal value of the derivative) in columns 13 and 14 of the relevant strategic sector type under the ‘Cash’ asset class sector type.

If a derivative is held for the purposes of hedging currency risk:

• report the market value of the foreign currency (FX) derivative against the asset class sector type the FX derivative is related to in column 13; 
• where the market value of the FX derivative is not allocated to a particular asset class sector type report against the ‘Cash’ asset class sector type in column 13; 
• report the actual currency hedging level against the investment exposure hedged as a percentage in column 15; and
• The notional principal value of the FX derivative does not need to be reported in SRF 550.0 table 2. 

If a derivative is held for the purposes of adjusting interest rate risk:

• For each investment exposure whose modified duration is altered using derivatives, report in column 17 the modified duration for that investment exposure after the derivative adjustment; and
• Report the market value of the derivative apportioned on an asset weighted basis against each reported combination of investment exposures whose modified duration is altered by the derivative. The notional principal value of the derivative does not need to be reported in SRF 550 table 2.

If a derivative is held for the purpose of either gaining or reducing exposure to an underlying asset class: 

• report the synthetic exposure in column 13 against the underlying asset class;
• report the effective exposure in column 12 which comprises the physical securities, synthetic exposures, and the market value of the derivatives; and
• report the corresponding cash offset value (i.e., inverse of the notional principal value of the derivative) in columns 12 and 13 of the relevant strategic asset sector type under the ‘Cash’ asset class sector. 

If a derivative is held for the purposes of hedging currency risk: 

• report the market value of the foreign currency (FX) derivative against the asset class sector type the FX derivative is related to in column 12;
• where the market value of the FX derivative is not allocated to a particular asset class sector type report against the ‘Cash’ asset class in column 12;
• report the actual currency hedging level against the investment exposure hedged as a percentage in column 14; and
• The notional principal value of the FX derivative does not need to be reported in SRF 550.1 table 1.

If a derivative is held for the purposes of adjusting interest rate risk:

• report the market value of the derivative apportioned on an asset weighted basis against each reported combination of investment exposures whose modified duration is altered by the derivative. The notional principal value of the derivative does not need to be reported in SRF 550.1 table 1.

If an RSE licensee has reported a benchmark allocation to ‘Currency Exposure’ strategic sector in SRF 550.0 table 1 column 10 (e.g., where an RSE licensee sets currency exposure targets at the investment option level), it should also report an allocation to ‘Currency Exposure’ strategic sector in table 2, with the value of the currency exposure reported in column 13 ‘Investment Option Value Amount’. 

The currency exposure amount reported in column 13 ‘Investment Option Value Amount’ should be the total currency exposure before hedging, with any hedging to be reflected in the hedged percentage in column 15 ‘Investment Currency Hedged Percent’.

For all international domicile allocations, RSE licensees should report the currency hedged ratio in column 15 ‘Investment Currency Hedged Percent’. This applies whether an RSE licensee reports either a benchmark allocation to currency exposure strategic sector or currency hedging ratios in in SRF 550.0 table 1. Any blanks will be interpreted as being fully unhedged.

‘Strategic Subsector’ means the segment of a ‘strategic sector’ asset class to which an asset allocation target is approved by the board, committee or individual with investment delegations under the investment governance framework of the fund.

Changes to ‘strategic subsector’ benchmark allocations (and ranges) to specific segments or groupings within that asset class may be approved under the appropriate investment delegation only where these allocations are within the Board approved allocations to the ‘strategic sector’. 

The RSE licensee should report each subsector allocation, where this is set, on an additional row, with the subsector information reported in columns 6 to 9 and the information of the strategic sector to which it underlies reported in columns 1 to 5. The sum of the benchmark allocations reported for each strategic subsector should equal the benchmark allocation for the relevant strategic sector.

Example: The Board approves a strategic sector benchmark allocation of 30% and ranges of (10 - 40%) to fixed income. The Investment Committee, Chief Investment Officer or Head of fixed income portfolio may, under delegation provided by the RSE Licensee’s investment governance framework, approve a strategic subsector benchmark allocation of 10% to Australian fixed income ex credit; 10% to Australian credit; and 10% to global fixed income. 

APRA expects RSE licensees to be able report on the investment strategy of options it offers to members consistent with the RSE licensee’s responsibility to formulate an investment strategy for each option. This includes externally managed options where an RSE licensee may adopt the investment strategy of the external investment manager. Some examples include managed funds, exchanged traded funds and listed investment companies offered on an investment platform.  

In cases where the RSE licensee adopts the investment strategy of an externally managed investment option the RSE licensee should report the investment strategy for the option as reported by the external investment manager. 

APRA intends to revise the instructions when SRS 550.0 is re-determined, to read: 

Current instruction: Report table 1 on an APRA-look through basis, reporting the strategic asset allocation regardless of how investments are made.

Proposed revised instruction: Report the RSE Licensee’s strategic asset allocation regardless of how investments are implemented.

No, under the instructions in SRS 550, RSE licensees an RSE licensee must report the information required under Table 2 of SRF 550.0 in respect of investment options underlying a MySuper product or trustee-directed product. For any other investment options, RSE licensee must report the information required under each Table of SRF 550.0 for each reporting period ending on or after 30 June 2022. Please refer to the ‘Information required’ section of SRS 550.0. 

SRS 605.0 requires annual submissions in respect of each RSE as at 30 June.  

APRA expects an ad-hoc submission for SRS 605.0 where an RSE licensee makes changes to an RSE’s products, investment menus or investment options (including for example, where a new product, investment menu or option is added or removed). Changes to the characteristics of products, investment menus or options would also result in an ad-hoc submission for SRS 605.0 (including if there is a name change to the products, investment menus or options).

APRA expects an ad-hoc submission of SRS 605.0 to be triggered by:

• The addition or deletion of any row in table 1, table 2 or table 3 of SRF 605.0; or
   
• Updates to any field of table 1, table 2 or table 3 of SRF 605.0 other than:

      o    ‘Product Disclosure Statement Updated Date’ (column 14, table 1 of SRF 605.0);
      o    ‘Investment Option Included Count’ (column 8, table 3 of SRF 605.0) for aggregated investment options.

For example, if an aggregated investment option provides members with access to direct shares included in the ASX200, a rebalancing of the relevant index will not be a trigger for an ad-hoc submission.

Fees and costs arrangements:

APRA expects an ad-hoc submission for SRS 605.0 where an RSE licensee makes changes to fee and cost arrangements (including for example, where a new fee or cost arrangement for an employer sponsor is changed and distinct from the arrangements already reported to APRA. This includes where an existing fee or cost arrangement is removed). 

Changes to the number of employer sponsors, number of member accounts and total member benefits covered under each fee and cost arrangement are expected over the course of the year, and will not trigger the requirement for an ad-hoc submission.

Specifically, APRA expects an ad-hoc submission of SRS 605.0 to be triggered by:  

• The addition or deletion of any row in table 4 of SRS 605.0;
   
• Updates to any field in table 4 of SRS 605.0 other than:

     o    Employer Sponsors Fees and Costs Arrangement Count; or
     o    Member Accounts Fees and Costs Arrangement Count; or
     o    Members Benefits Fees and Costs Arrangement Amount.

Reporting under SRS 605.0 is to reflect the structure as at 30 June each year. If there are structural changes that take effect on or before 30 June, APRA expects that reporting will reflect the new structure.

A member cannot have a beneficial interest within an RSE that is not through a superannuation product as defined under SRS 605.0.

For the purpose of reporting under SRS 605.0 and all associated reporting standards, APRA expects RSE licensees to report one or more superannuation products for each RSE.

For the purpose of reporting under SRS 605.0, APRA expects an RSE licencee to report one or more investment menus for each superannuation product. 

The concept of an investment menu is a new reporting level introduced under SRS 605.0 which represents the collection of investment options that members in a superannuation product have access to.

In the case of a lifecycle option, the investment menu represents the collection of lifecycle stages.

In some, but not all cases there may be an additional fee incurred by the members in order to access the investment options contained within the menu. 

Members in different superannuation products may have access to: 

• different investment menus (comprising differing or overlapping investment options); or,
   
• to the same investment menus.

APRA expects investment options are reported if they either:

• have members or member assets in them; or
   
• are open to new members, regardless of whether any members or member assets are currently invested in them.

Consistent with current reporting to APRA, if the RSE is authorised to offer a MySuper product, APRA expects they report for each generic MySuper product, goodwill MySuper product and large employer MySuper product, as a distinct superannuation product with the product type of ‘MySuper’.

APRA expects this superannuation product to have a single investment menu which provides access to either:

• A single diversified investment option; or
   
• Multiple lifecycle stages.

APRA expects that members who have 100 per cent of their balance in the MySuper product are reported under the MySuper product on SRF 606.0.  APRA expects that member totals that are reported under the MySuper product and investment menu combination in SRF 606.0 Table 4 would align to member totals that are reported for the MySuper product on SRF 611.0 Table 2.

Where the MySuper option is accessed through other superannuation products, APRA expects that members who have less than 100 per cent of their balance in the MySuper option are reported under the MySuper investment menu and option (using the same unique identifiers) in combination with the non-MySuper product on SRF 606.0. 

Where members in an investment option are not considered to have a MySuper interest, APRA expects that a different unique identifier is used for that investment option, even if the investment option has the same strategy as the MySuper investment option.

Please refer to the worked example for SRF 605.0, SRF 606.0 and SRF 611.0 (see below) for further information.

Yes, for comparability purposes, APRA requests the use of existing identifiers where possible. 

Identifiers for select investment options, MySuper lifecycle stages and defined benefit sub-funds are currently reported under SRS 001.0. APRA requests that RSE licensees use the same identifier when reporting corresponding products, investment menus or investment options under SRS 605.0 where possible.

In the case of a single strategy MySuper products, APRA expects that the ‘MySuper Identifier’ reported in SRF 001.0 (Part D item 6(2)), would be reported as the; 

• ‘Superannuation Product Identifier’ (SRF 605.0 (Table 1, column 2); and
   
• ‘Investment Menu Identifier’ (SRF 605.0 (Table 2, column 2).

In the case of MySuper products with a LifeCycle strategy, APRA expects that the ‘MySuper Identifier’ reported in SRF 001.0 (Part D item 6(2)), would be reported as the:  

• ‘Superannuation Product Identifier’ (SRF 605.0 (Table 1, column 2) and;
   
• ‘Investment Menu Identifier’ (SRF 605.0 (Table 2, column 2).

APRA expects that the ‘LifeCycle Stage Identifier’ reported in SRF 001.0 (Part D item 6(2)) for each lifecycle stage would be used for each corresponding ‘Investment Option Identifier’ (SRF 605.0 (Table 3, column 2).

In the case of select investment options, APRA expects each ‘Select Investment Option Identifier’ reported in SRF 001.0 (Part E item 7(2)) would be used where possible for each corresponding ‘Investment Option Identifier’ (SRF 605.0 (Table 3, column 2)).

Yes, each individual fee arrangement is required to be reported in table 4 of SRF 605.0.  If the same arrangement is offered to a number of individual members, these may be aggregated into a single reporting line.

APRA expects RSE licensees to report the URL that covers the largest number of members, and then by funds under management if another factor is required.

No, RSE licensees are not required to report member level fee arrangements which are negotiated between a member and an advisor under Table 4 of SRF 605.0 RSE structure. RSE licensees should report fee arrangements which are standard fees and costs arrangements or those that have been negotiated with the RSE licensee rather than a financial planner.

APRA will accept reporting of unique identifiers that do not identify employers by name in table 4 of SRF 605.0.

APRA expects that these items will align, however accepts that due to definitional differences these items may not be exactly equal.

Yes. There are no materiality thresholds for reporting of fee arrangements. APRA expects RSE licensees to report all fee arrangements which apply to members under table 4 of SRF 605.0. Please note that this excludes fees for advice as outlined in FAQ 706.

APRA expects RSE licensees to report all investment options on table 3 of SRF 605.0 as at 30 June 2021. RSE licensees should report ‘Yes’ or ‘No’ in column 5 to indicate whether the investment option is a trustee-directed product. Submission of the 30 June 2021 period data for SRF 605.0 is due by 30 September 2021. If an RSE licensee reclassifies an investment option after the submission date, the RSE licensee should resubmit SRF 605.0 for the 30 June 2021 period with the corrected data in column 5. 

APRA expects that where the inception date is unclear, due to the superannuation product having a long history, the RSE licensee will report the date 1 January 1990.  

As per the definition under SRS 101, for an investment option, the inception date is the first date that the investment option was available through any investment menu within the RSE, defined benefit RSE or ERF.

APRA expects RSE licensees to report the inception date for the investment option, regardless of the date that the investment option would have met the definition of a TDP.

The standard fee arrangement should reflect the absence of any custom fee arrangement. In most cases, it is sufficient to report one standard fee arrangement which applies to all products. 

Where more than one standard fees and costs arrangement has been reported in SRF 605.0 table 4, the RSE licensees cannot report ALL under the fee and costs arrangement identifier in SRS 705.0 Components of net return, SRS 705.1 Investment performance and objectives or SRS 706.0 Fees and Costs. Instead RSE licensees must report a separate row for each fee arrangement.

APRA expects that there should be no more standard fees and costs arrangements than products reported.

APRA expects that for column 10 in SRF 605.0 table 3 titled ‘Exchange Code Text’ the code of the exchange on which any exchange-traded assets are listed is to be reported and not the ticker symbol or individual security identifier.

For example, for an ASX listed security, column 10 would be reported as ASX, while column 11 of SRF 605.0 table 3 titled ‘Ticker Symbol Text’ would be the ticker code or the individual security identifier.

APRA expects RSE licensees to report the ‘Investment Option Name Text’ consistent with how the investment option name is disclosed to members. The ‘Investment Option Name Text’ reported to APRA should not contain codes or shorthand text.

APRA expects that the number of defined benefit members as at the reporting date that would be included for actuarial valuation purposes is reported (for member benefits which the assets in the investment option underlie). 

Yes, APRA expects all RSE licensees to report all members of the RSE in Table 1 of SRF 611.0 Member Accounts.

Where the RSE licensee is unable to calculate a member benefit value for a member in a product such as annuity products, RSE licensees may report a value of zero for the member benefit. For example, if this is the only interest held by the member, the member may be included in the ‘Member Benefit Bracket Type’ of ‘<$1000’.

APRA expects RSE licensees to report defined benefit members’ benefits based on: 

• data from the most recent actuarial valuation; or 
• an other calculation or update approved by the fund actuary. 

No, activity-based fees will be reported in relation to fee and cost disclosures via SRS 706.0.

APRA notes that investment performance will include accruals for various components of net returns, such as performance fees and taxes; some of these components would include estimates.  APRA expects that components of net returns reported under SRS 705.0 reflect the net return a member in that option / product would receive for the reporting quarter, including accruals and any adjustments made during the reporting quarter.    

ARPA expects that the gross investment return reported under SRS 705.0 and SRS 705.1 will reflect the most accurate representation of the gross performance of the investment option given the information available at the due date. 

In accordance with FAQ 705.0b, APRA notes that quarterly investment performance will include accruals for various components of net returns, such as performance fees and taxes; some of these components would include estimates. APRA expects that the gross investment return reported under SRS 705.0 would reflect the net investment return a member in that option / product would receive for the reporting quarter, grossed up by the quarterly accrual for investment fees, costs and taxes reported under SRS 705.0 for the reporting quarter.  

APRA expects the annual submission of SRS 705.0 to reflect the actual fees costs and taxes for the year.

APRA notes that there is a difference between the reporting standard which specifies that numbers should be reported as percentages to 2 decimal places and APRA Connect which allows percentage up to 4 decimal places (6 decimal places in total). 

RSE licensees should report data for these columns to 4 decimal places (for percentages this will mean 6 numbers after the decimal point). APRA intends to update this requirement the next time the reporting standard is determined.

APRA's expectation is that the Net Investment Return is calculated as investment earnings as a proportion of the members’ balance attributed to an investment option, consistent with how that return is disclosed to members.

APRA expects RSE licensees to report investment objectives as per SPS 530 Investment Governance, not peer benchmarks.

For the periods prior to the introduction of the Stronger Super reforms on 30 June 2014, if data is not available to recalculate the net investment return as per the definition in SRS 705.1, RSE licensees should report the available net investment return which most closely represents the net investment return definition on SRS 705.1. 

For the calculation of volatility which includes periods ending on or before 30 June 2014, RSE licensees may take the same approach as for the net investment returns noting their input into calculating the ‘Volatility of comparison return (5 years)’ and ‘Volatility of comparison return (10 years)’ in SRS 705.1.

APRA notes that there is a difference between the reporting standard which specifies that numbers should be reported as percentages to 2 decimal places and APRA Connect which allows percentage up to 4 decimal places (6 decimal places in total).  

RSE licensees should report data for these columns to 4 decimal places (for percentages this will mean 6 numbers after the decimal point). APRA intends to update this requirement the next time the reporting standard is determined.

Under Superannuation Prudential Standard 530 Investment Governance, APRA expects that an investment return objective be specified and measurable. SPG 530 states that ‘APRA expects a return objective would be expressed with a defined investment horizon…’.

APRA expects RSE licensees to report the time horizon used to set the return objective target in SRF 705.1 table 1 column 10. APRA expects this to be consistent with the defined investment horizon set out in the RSE licensee’s Investment Policy Statement.

Where the return objective investment horizon is defined as a range, or consists of multiple time horizons, report the minimum investment horizon the return objective is measured against.

If an RSE licensee is unable to source the relevant time horizon for a historical reporting period, the RSE licensee may report the investment horizon adopted for the most recent reporting period available.

The 30 June 2022 submission of SRF 705.1 is due by 28 July 2022. Where an RSE licensee is unable to source investment objective performance by the due date, please submit using the best available information, and subsequently resubmit within 14 days if required. 

APRA intends to consult on an update to SRS 705.1 to enable a longer timeframe for submission of investment objective performance (to later in 2022).

For defined benefit products, report only fees and costs that are charged to members.

Yes, SRS 706.0 requires that all standard and customised fee structures are reported.  

Changes in buy/sell spreads on their own do not trigger an ad hoc submission of SRS 706.0. 

No. Member level advice fee arrangements that have been agreed between a member and a financial adviser are not required to be included in reporting for SRF 706.0.

RSE licensees must report data under SRS 706.0 annually each 30 June and ad-hoc within 28 days of a change to fees and costs reported under SRS 706.0.

All fees and costs data under SRS 706.0 should be reported as the annual fee disclosed or the fee per activity disclosed as at the reporting date. Where a fee or cost is calculated or charged more frequently than annually, the RSE licensee should report the calculation frequency in column 10, and the charge frequency in column 11. The RSE licensee should report the percentage or dollar charge in column 17 or 20 as the fee or cost per annum regardless of the calculation or charge frequency. Where a fee or cost is calculated or charged per activity, the RSE licensee should report the percentage or dollar charge as the fee or cost per activity. 

RSE licensees do not need to report the fee cap of 3% per annum of the account balance on investment and administration fees for all accounts with balances less than $6,000. As this fee cap is prescribed in legislation, APRA will apply this to all RSE licensees in use of the data. 

APRA expects that all fees and costs reported under SRS 706.0 be reported ‘gross of tax obligations’ where ‘gross of tax obligations’ refers to gross of income tax, GST and stamp duty.  APRA intends to update SRS 706.0 to remove this reference: ‘consistent with the manner in which they are required to be disclosed in Product Disclosure Statements, where applicable’ when describing the requirement to report fees and costs gross of tax.