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NEWS FLASH 5 September

APRA guidance – Draft contribution, benefit accrual and payment standards On Wednesday 31 August 2011, APRA released: •

Superannuation Prudential Practice Guide Draft SPG 270 – Contribution and benefit accrual standards for regulated superannuation funds;

Superannuation Prudential Practice Guide Draft SPG 280 – Payment standards for regulated superannuation funds and approved deposit funds; and

A discussion paper providing details about the draft SPGs.

The draft SPGs do not introduce any new requirements, however they update the previous APRA guidance to reflect legislative changes introduced since then. Further: •

Draft SPG 270 includes guidance on contributions made in error. It sets out the criteria for determining whether contributions have been made in error and the treatment of such contributions; and

Draft SPG 280 includes guidance about illegal early release and identity theft, including approaches to assist trustees in ensuring these risks are identified and mitigated. Draft SPG 280 also includes guidance about superannuation and illiquid investments and APRA’s expectations of RSE licensees in making applications for portability relief under SIS Regulation 6.37. It also outlines the current status and expected legislative amendments relating to the release of benefits on compassionate grounds.

APRA is seeking feedback on the draft SPGs by 31 October 2011, with a view to finalising them by December 2011.

For more information, please contact: Paul Cleary Partner T: 02 8257 5760 M: 0407 052 170 paul.cleary@turkslegal.com.au

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APRA guidance