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system, whether they are taking out a home loan,
planning for their retirement or investing in the
market. “Promoting greater financial literacy is
key to ASIC’s strategic priority,” Medcraft said.
Under the Strategy, ASIC will continue to
enhance its popular MoneySmart website for
consumers and investors, and reach more schools
through its MoneySmart Teaching program,
designed to promote and support financial literacy
“Over 400,000 Australians already benefit from
visiting ASIC’s MoneySmart website each month
to access free and impartial tools and resources
to help them make their financial decisions,” Mr
Chairman of the Australian Government
Financial Literacy Board, Paul Clitheroe,
said, “Educating the next generation to be
MoneySmart is a key part of the National Strategy.
With over 80 per cent of Australian 15-year-olds
having a bank account, and about 90 per cent
of teenagers with a mobile phone, learning good
financial skills and habits from an early age can
make a difference throughout life.”
ASIC has welcomed the commitment of many
organisations across all these sectors to the
delivery of financial literacy initiatives aligning
with the priorities set out in the Strategy.
ASIC will liaise with relevant stakeholders on
the implementation of the 2014-17 Strategy and
will report regularly on progress.
LOST MEMBER REPORTING: FULL RE-
REPORT FOR APRIL 2015 CANCELLED
The ATO has recently issued an alert advising
that the full re-report of lost members that was
scheduled for the reporting period ended 31
December, 2014 (due 30 April, 2015) will no
longer go ahead as originally planned.
While the full re-report was supported by a
number of funds, the ATO is conscious that the
industry is currently implementing significant
changes to their systems and processes as a result
of the recent reforms, and this work is likely to
continue over the next 12 months. The ATO
is therefore of the view that the timing of the
proposed full re-report of lost members would
not be appropriate given this full re-report would
require additional resources and work efforts for
both funds and the ATO (including a major IT
release) during the period between January and
As a result of this decision, funds will still
need to complete their normal incremental Lost
Member Statement reporting for the periods
ending 30 June, 2014 (due 31 October, 2014)
and 31 December 2014 (due 30 April, 2015).
The ATO’s decision is also supported by the
ongoing reduction trends of accounts on the Lost
Members Register (LMR).
The ATO has been working closely with funds
over recent years to ensure a more accurate and
complete Lost Members Register (LMR). The
ATO has advised that it is keen to continue these
collaborative efforts with the industry to focus
on lost accounts where the balances are under
$2,000 or the member is aged over 65 years or
the member is deceased.
APRA ISSUES FAQS ON REPORTING AND
PRUDENTIAL PRACTICE GUIDES
APRA has released several new and updated
FAQs on its data reporting requirements and the
prudential practice guides.
Issues covered by the new and updated data
reporting FAQs include the reporting of:
• defined benefit valuations and amounts
• income protection insurance amounts
• insurance related flows
• salary sacrifice and superannuation
guarantee contributions by employer, and
inward and outward SMSF rollovers
• service providers
• directly and indirectly held derivative
• counterparty credit ratings
• product dashboard return target.
APRA has also added a new FAQ clarifying how
FUM should be determined in order to calculate
an Operational Risk Financial Requirement
(ORFR) target amount. This new FAQ addresses
an error that has been identified in Prudential
Practice Guide SPG 114 Operational Risk Financial
Requirement (SPG 114), and makes it clear that,
for the purpose of calculating the ORFR target
amount, FUM should be taken to be the balance
of net assets available to pay members’ benefits.
APRA will amend SPG 114 in due course.
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