Superannuation Industry (Supervision) Amendment Regulations 2003 (No. 2) 2003 No. 170
EXPLANATORY STATEMENT
STATUTORY RULES 2003 No. 170
Issued by authority of the Minister for Revenue and Assistant Treasurer
Subject - Superannuation Industry (Supervision) Act 1993
Superannuation Industry (Supervision) Amendment Regulations 2003 (No. 2)
Subsection 353(1) of the Superannuation Industry (Supervision) Act 1993 (the Act) provides that the Governor-General may make regulations prescribing matters required or permitted by the Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Act.
Section 13 of the Financial Sector (Collection of Data) Act 2001 (Data Act) allows the Australian Prudential Regulation Authority (APRA) to determine reporting standards for, and require provision of certain documents from, financial sector entities. On 1 July 2003, APRA determined new reporting standards for superannuation entities, with the exception of self managed superannuation funds. Determination of these reporting standards occurred on 1 July 2003 to take effect for the 2003-2004 financial year. This is the first determination of reporting standards that relate to superannuation entities made under the Data Act. Certain provisions in the Superannuation Industry (Supervision) Regulations 1994 became redundant as they are now determined by APRA in the 1 July 2003 reporting standards. The standards do not extend to self managed superannuation funds, as such funds are not regulated by APRA.
The regulations repealed those provisions.
Regulation 8.01A exempted certain kinds of superannuation entities in certain circumstances from the requirement to prepare a statement of cash flows. The regulation replaced this provision with an exemption provision that refers only to self managed superannuation funds.
Regulation 11.02 set deadlines for the lodgement of annual returns by non self managed superannuation entities. It has been repealed.
The content that has been omitted from regulations 8.01A and 11.02 is contained in the reporting standards that APRA determined on 1 July 2003.
The Act specifies no conditions needed to be met before the power to make the regulations was exercised.
The regulations commence on gazettal.
Authority: Subsection 353(1) of the Superannuation Industry (Supervision) Act 1993.
Overview
The Superannuation Industry (Supervision) Amendment Regulations 2003 (No. 2) were enacted to amend the Superannuation Industry (Supervision) Regulations 1994 in light of new reporting standards determined by the Australian Prudential Regulation Authority (APRA) under the Financial Sector (Collection of Data) Act 2001. The Superannuation Industry (Supervision) Act 1993 provides the legislative basis for the regulation of the superannuation industry, and the amendments made by these regulations were necessary to reflect the new standards that APRA set on 1 July 2003. The regulations repeal certain provisions that have become redundant, such as those related to the preparation of statements of cash flows by certain superannuation entities and deadlines for the lodgement of annual returns by non self managed superannuation entities. These changes ensure that the regulatory framework remains current and effective, while aligning with the new reporting standards set by APRA.
Scope and Application
The Superannuation Industry (Supervision) Amendment Regulations 2003 (No. 2) were made under the authority of the Superannuation Industry (Supervision) Act 1993, with the aim of updating certain regulations to reflect changes in reporting standards as determined by the Australian Prudential Regulation Authority (APRA) under the Financial Sector (Collection of Data) Act 2001. These regulations apply to superannuation entities, excluding self-managed superannuation funds, and are intended to ensure compliance with the new reporting standards set by APRA for the 2003-2004 financial year. The amendments involve repealing certain provisions in the Superannuation Industry (Supervision) Regulations 1994 that are now governed by APRA's reporting standards. For example, Regulation 8.01A has been revised to exempt self-managed superannuation funds from the requirement to prepare a statement of cash flows, and Regulation 11.02, which set deadlines for the lodgement of annual returns by non-self-managed superannuation entities, has been repealed. The regulations come into effect upon gazette and do not impose any specific conditions beyond those outlined in the parent Act.
Key Provisions
The Superannuation Industry (Supervision) Amendment Regulations 2003 (No. 2) primarily focus on amending certain aspects of the existing regulations under the Superannuation Industry (Supervision) Act 1993, by virtue of section 353(1) of the Act. Regulation 8.01A has been revised to exempt only self managed superannuation funds from the requirement to prepare a statement of cash flows, whereas the former regulation exempted certain kinds of superannuation entities in specific circumstances from this requirement. Regulation 11.02, which previously set deadlines for the lodgement of annual returns by non self managed superannuation entities, has been repealed. The content that was previously contained in these regulations has been superseded by new reporting standards determined by the Australian Prudential Regulation Authority (APRA) on 1 July 2003, as per section 13 of the Financial Sector (Collection of Data) Act 2001.
Entities governed by these regulations are now subject to the new reporting standards set by APRA. Non self managed superannuation funds must comply with these new standards which came into effect on 1 July 2003. The obligations include adhering to the specific reporting requirements set forth by APRA, which encompass detailed reporting standards for superannuation entities, excluding self managed superannuation funds. These entities must ensure that their financial reports and returns comply with the new standards, which may include specific formats, timings, and contents for the information to be reported. The entities are also required to provide the necessary documentation to APRA as stipulated in the reporting standards.
The regulations also outline consequences for non-compliance. Although the specific penalties are not detailed within the explanatory statement, it is known that breaches of the Superannuation Industry (Supervision) Act 1993 or its regulations can lead to civil or criminal penalties. Under the Act, entities that fail to comply with the reporting requirements or any other stipulated obligations may face legal action. Penalties can include fines and, in some cases, imprisonment. The exact penalties would be determined based on the nature and severity of the breach, in accordance with the broader legislative framework governing financial compliance and reporting in Australia.