Financial Sector (Collection of Data) determination No. 42 of 2005 Reporting Standard SRS 260.0 (2005) Financial Sector (Collection of Data) Act 2001
I, Charles Watts Littrell, a delegate of APRA, under paragraph 13(1)(a) of the Financial Sector (Collection of Data) Act 2001 (‘the Act’) MAKE the reporting standard set out in the Schedule, which applies to the trustees referred to in paragraph 2 of the reporting standard. Under section 15 of the Act, I DECLARE that the reporting standard shall begin to apply those trustees on the later of 1 July 2005 and the date of registration on the Federal Register of Legislative Instruments. Dated 21 June 2005 [signed] ……………………............ Charles Littrell Executive General Manager Policy, Research and Statistics Division APRA Interpretation In this Notice APRA means the Australian Prudential Regulation Authority.
Schedule
Reporting Standard SRS 260.0 (2005)
Trustee Statement
Objective of this reporting standard
This reporting standard is made under section 13 of the Financial Sector (Collection of Data) Act 2001. It requires the trustee of a superannuation entity[1] to give APRA, on an annual basis, a statement regarding the level of compliance with key prudential and legislative requirements, such as the accuracy of information reported to APRA and compliance with key provisions of the Superannuation Industry (Supervision) Act 1993 (the SIS Act). This reporting standard outlines the overall requirements for the provision of the required information to APRA. It should be read in conjunction with: · Form SRF 260.0 Trustee Statement (Form SRF 260.0) and the instructions to that form (which are attached and both form part of this reporting standard); and · the Annual Reporting Requirements and General Instruction Guide.
Purpose
1. Data collected in Form SRF 260.0 is used by APRA for the purpose of prudential supervision.
Application and commencement
2. This reporting standard applies to each trustee of a relevant registered superannuation entity as defined by paragraph 3 and shall begin to apply to those trustees on the later of 1 July 2005 and the date of registration on the Federal Register of Legislative Instruments. 3. A superannuation entity is a relevant registered superannuation entity if, at the end of the most recent reporting period for the entity, it was not: (a) a small APRA fund; (b) a self managed superannuation fund; or (c) a single member approved deposit fund.
Information required
4. The trustee of a relevant registered superannuation entity must provide APRA with the information required by Form SRF 260.0, in respect of the entity, for each reporting period. 5. For the avoidance of doubt, if the trustee is trustee of more than one relevant registered superannuation entity, the trustee must separately provide the information required by the form for each of those relevant registered superannuation entities.
Forms and method of submission
6. The information required by this reporting standard must be given to APRA by the trustee of a relevant registered superannuation entity either: (a) where subparagraph (b) does not apply: (i) in electronic form using the ‘Direct to APRA’ application, applying one of the electronic submission mechanisms under that application; or (ii) by manually completing SRF 260.0 on paper and mailing the completed form to APRA’s head office at Level 26, 400 George Street, Sydney, New South Wales; or (b) by means of an agent to whom the trustee has outsourced the function of providing the information on the trustee’s behalf, in which case the agent must provide the information: (i) in electronic form using the ‘Direct to APRA’ application, applying one of the electronic submission mechanisms under that application; or (ii) if the agent has contacted APRA and advised that the agent cannot submit the information in electronic form under sub-subparagraph (i), by manually completing SRF 260.0 on paper and mailing the completed form to APRA’s head office at Level 26, 400 George Street, Sydney, New South Wales. Note 1: The ‘Direct to APRA’ software and relevant forms may be obtained from APRA. Note 2: See paragraphs 12, 13 and 14 for requirements relating to the authorisation of information provided under this reporting standard (which differ depending on how the information is provided). Reporting periods and due dates 7. Subject to paragraph 8, the trustee of a relevant registered superannuation entity must provide the information required by this reporting standard in respect of each year of income (within the meaning of subsection 10(1) of the Superannuation Industry (Supervision) Act 1993) of the entity. 8. APRA may, by notice in writing, change the reporting periods, or specified reporting periods, for a particular relevant registered superannuation entity to require the trustee to provide the information in respect of the entity: (a) more frequently (if, having regard to the particular circumstances of the entity, APRA considers it necessary or desirable to obtain information more frequently for the purposes of the prudential supervision of the entity); or (b) less frequently (if, having regard to the particular circumstances of the entity and the extent to which it requires prudential supervision, APRA considers it unnecessary to require the trustee to provide the information on an annual basis). 9. The information required by this reporting standard must be provided to APRA 4 months after the end of the reporting period to which it relates. 10. APRA may grant a trustee an extension of a due date in writing, in which case the new due date for the provision of the information will be the date on the notice of extension.
Quality control
11. Information required under this reporting standard is not required to be reviewed and tested by the auditor of the superannuation entity. 12. The information provided by a trustee under this reporting standard must be the product of processes and controls developed by the trustee for the internal review and authorisation of that information. It is the responsibility of the trustee to ensure that an appropriate set of policies and procedures for the authorisation of data submitted to APRA is in place.
Authorisation
13. If the trustee of a relevant registered superannuation entity provides the information required by this reporting standard under subparagraph 6(a), then: (a) if the trustee uses the ‘Direct to APRA’ application under sub-subparagraph 6(a)(i), an officer of the trustee must digitally sign, authorise and encrypt the information (for which purpose APRA’s certificate authority will issue digital certificates, for use with the ‘Direct to APRA’ application, to officers of the trustee who have authority from the trustee to transmit data to APRA); and (b) if the trustee provides the information on paper under sub-subparagraph 6(a)(ii), the completed form must be signed by an officer of the trustee who is authorised by the trustee to complete and lodge the form. 14. If the trustee of a relevant registered superannuation entity provides the information required by this reporting standard through an agent under subparagraph 6(b), then: (a) the agent will not be required to sign or authorise the information; but (b) the trustee must: (i) obtain from the agent a paper copy of the completed form as provided to APRA (whether it was provided under sub-subparagraph 6(b)(i) or (ii)); and (ii) cause the paper copy to be signed by an officer of the trustee authorised by the trustee to sign the paper copy; and (iii) lodge the signed paper copy with APRA by mailing it to APRA’s head office at Level 26, 400 George Street, Sydney, New South Wales, by the relevant due date (unless APRA, in writing, determines to waive the requirement under this sub-subparagraph, in relation to the trustee, or a class of trustees of which the trustee is a member, or all trustees). Note: APRA may, for example, determine to waive the requirement under sub-subparagraph 14(b)(iii) where a trustee has undertaken to retain the signed copy of the completed form for an agreed period of time.
Minor alterations to form and instructions
15. APRA may make minor variations to: (a) a form that is part of this reporting standard, and the instructions to such a form, to correct technical, programming or logical errors, inconsistencies or anomalies; or (b) the instructions, to clarify their application to the form without changing any substantive requirement in the form or instructions. 16. If APRA makes such a variation it must notify trustees of relevant registered superannuation entities in writing.
Transitional 17. If a reporting period of a relevant registered superannuation entity ended on 30 June 2005, or ends after that date, the trustee of the entity must report under this reporting standard in relation to the entity in respect of that reporting period. Interpretation 18. In this standard: APRA means the Australian Prudential Regulation Authority established under the Australian Prudential Regulation Authority Act 1998; due date means the relevant due date under paragraph 9 or, if applicable, paragraph 10; officer in relation to a trustee of a relevant registered superannuation entity means: (a) if the trustee is a corporation – a director or officer of that corporation; (b) if the trustee is a natural person – that person; or (c) if two or more natural persons are trustees of the entity – one of those persons; regulated superannuation fund has the meaning given by section 19 of the SIS Act; relevant registered superannuation entity has the meaning given by paragraph 3 of this reporting standard; reporting period means a reporting period for a relevant registered superannuation entity determined under paragraph 7 or 8, as applicable; self managed superannuation fund has the meaning given by section 17A of the SIS Act; single-member approved deposit fund means an approved deposit fund (within the meaning of subsection 10(1) of the SIS Act) that has only one member; SIS Act means the Superannuation Industry (Supervision) Act 1993; small APRA fund means a regulated superannuation fund that has fewer than 5 members and is regulated by APRA under the SIS Act; superannuation entity has the meaning given by subsection 10(1) of the SIS Act. Note: Subsection 10(1) of the SIS Act provides that superannuation entity means a regulated superannuation fund, or an approved deposit fund, or a pooled superannuation trust (as defined in the SIS Act).
Reporting Form SRF 260.0 Trustee Statement
Instruction Guide
Completion of SRF 260.0 Trustee Statement This form must be completed on an annual basis in respect of APRA-regulated superannuation entities, excluding Small APRA Funds (SAFs) and Single Member Approved Deposit Funds (SMADFs). Self-managed superannuation funds, regulated by the ATO, are also excluded. There are no exemptions for any type of superannuation entity. If a superannuation entity has no items to disclose, the form can be left blank as D2A recognises blanks as zeros; however it is still required to be submitted as part of the annual return. Note: All forms included in the SRF 200 series should be submitted together as an annual return, not individually as separate forms. Purpose This form represents a statement from the Trustee(s) of the superannuation entity attesting to the superannuation entity’s compliance with the following (to the extent applicable): · Superannuation Industry (Supervision) Act 1993 (the SIS Act); and · Financial Sector (Collection of Data) Act 2001 (the Collection of Data Act), and · Corporations Act 2001 (the Corporations Act); and · Conditions or requirements imposed by APRA in writing. This Guide has been prepared to assist in the completion and lodgement of the SRF 260.0 Trustee Statement. For ease of use, the Guide has been split into three main sections as follows: · Lodgement and validation of and changes to SRF 260.0 Trustee Statement; · General Guidance – this guidance provides principles that should be applied to all items throughout SRF 260.0 Trustee Statement; and · Instruction Guide for Specific Items – this guidance should be applied to the specific items which relate to each superannuation entity.
Lodgement and validation of SRF 260.0 Trustee Statement Lodgement and authentication codes This form must be completed and lodged to APRA either by, or on behalf of, a trustee that is a corporate or natural ‘person’. (It cannot be lodged by the superannuation entity itself, as the entity is not a ‘person’). Where not lodged by the trustee itself, it may be lodged on behalf the trustee by the trustee’s agent, e.g. an administrator or accountant. Once SRF 260.0 Trustee Statement has been completed and submitted to APRA (where submission is by the D2A system), an authentication code is generated in D2A from information entered into the form. The authentication code and date submitted appear in the footer of each page of the return (‘return’ equates to all 9 forms in the SRF 200 series). Any change of information entered or resubmission of the return will result in a change to the authentication code. The authentication codes and date submitted should be used by auditors to determine that the four forms audited (SRF 200.0, 210.0, 220.0 and 230.0) have been submitted. The same authentication code on all the forms lodged will give Trustees some 'comfort' that their attestations on SRF 260.0 Trustee Statement relate to the other forms submitted as the return. Different authentication codes should be taken by Trustees that their attestations are not consistent with other forms and APRA may take the view that the return has therefore not been signed and authorised by the Trustee. A receipt indicating successful lodgement of the return will be provided via email. There may be a slight delay in a receipt being provided if the submission is made in the last week of October. Do not resubmit your return however, as the receipt will be generated. Validation and calculation of totals When data is entered into the form, the total balances (in the greyed out cells) will not be calculated automatically. The total items will only calculate when the form is validated. Clicking on the word 'validate' in the top left hand corner of the screen and selecting ‘OK’ will result in the total items being calculated and the validation rules appearing for review. There are three types of validation rules as follows: 1. Warnings: Confirmation rules – this rule requires the user to provide confirmation that the data entered into an item is correct, for example that a negative number is correct and should not be positive. To provide confirmation the user should click the confirm box and provide a brief description in support of the item. Note: Descriptions entered for warnings may not always appear if the return is validated more than once. There is no need to re-enter the description as D2A has saved this description and the comments will be lodged with the return. 2. Error: Mandatory rules – this indicates an error in an item, for example a description and a value must be included in a table. These errors must be corrected before the return can be lodged. 3. Cross form validations – this also indicates an error and must be corrected before the return can be lodged, for example Totals disclosed in SRF 210.1 Selected Disclosure of Investments must agree with the investments reported in item 3 ‘Investments’ on SRF 210.0 Statement of Financial Position. Trustee signing and authorisation Trustees are required to sign and authorise the annual return which incorporates the nine SRF 200 forms. The return must be signed and authorised in one of the following ways: 1. Where a trustee lodges the annual return electronically (using the D2A system) –using a digital certificate issued by APRA for use with the D2A system. Authorisation using a digital certificate is viewed by APRA as a trustee signing and authorising the return. 2. Where a trustee manually completes the annual return and mails it to APRA’s head office – an authorised officer of the trustee must sign every page of the paper form (plus item 6 of SRF 260.0 Trustee Statement). 3. Where a trustee uses an agent (e.g. administrator/accountant) to lodge the annual return (whether on paper, or using D2A) - the Agent is required to print the return and ensure that an authorized officer of the trustee signs every page of each of the forms (plus item 6 of SRF 260.0 Trustee Statement) as evidence that the trustee has reviewed and authorised the return in total. (APRA has determined that this signed return is not required to be submitted to APRA, provided it is retained by the trustee and made available for onsite inspection by APRA.)
General guidance for completion of SRF 260.0 Trustee Statement Differences between quarterly and annual returns Any differences between the final quarterly return and the annual return should be explainable by reference to the methodologies underlying the preparation of the different returns. APRA expects that the Trustee will have adequate reporting systems and internal controls supporting the preparation and reporting of accurate financial and statistical information to APRA. Important! Do not respond “n/a” to any item in the form as SRF 260.0 Trustee Statement does not recognise this response. Only Y or N can be entered into SRF 260.0 Trustee Statement.
Instruction guide for specific items 1. Trustee attestation of financial information provided to APRA APRA Annual Return This requires the Trustee to attest whether the financial information provided to APRA in terms of the APRA Annual Return: · Agrees or does not agree with the accounting records of the superannuation entity in respect of the applicable financial year ended; and · Truly or do not truly represent the transactions for the year and financial position at year end, in accordance with the provisions of the SIS Act, the Collection of Data Act and to the extent that they do not contain any requirements to the contrary, Accounting Standards and other mandatory professional reporting requirements in Australia. Point 2 effectively means that the information reported to APRA in the nine forms designated as comprising the APRA Annual Return has been prepared in accordance with the instruction guide to the each form and the requirements of the reporting standards for each form made under the Collection of Data Act. 2. Trustee attestation of Compliance with Risk Management Plan Important! If the Trustee is not a registrable superannuation entity (RSE) licensee then item 2 should be left blank. If the Trustee is an RSE licensee then the Trustee should complete item 2 with a Y or N response. Item 2. Trustee attestation of Compliance with the Risk Management Plan This item requires the Trustee, if it is an RSE licensee, to attest whether the licensee’s risk management strategy (RMS), and the RSE’s risk management plan (RMP) comply with the specified requirements in the SIS Act, Superannuation Industry (Supervision) Regulations, and any requirements specified by APRA. In particular, the RMS and RMP need to set out effective risk management and control systems, to identify, monitor and manage material risks that could adversely effect the operations of the licensee and the superannuation entity. The RSE licensee must also attest whether it has complied with each measure and procedure detailed in the RMS and RMP.
Item 2A. Trustee attestation of Compliance with the Licence Conditions This item requires the Trustee, if it is an RSE licensee, to attest whether it has complied with all licence conditions imposed on its RSE licence. These include the licence conditions imposed on all licences, licence conditions imposed on groups of licences, and any additional conditions imposed on the licence of the particular licensee. The RSE licensee must also attest that in accordance with paragraph 29JA(1) of the SIS Act, it notified APRA of all breaches of RSE licence conditions within the designated time period. Where APRA had had reasonable grounds to believe the RSE licensee had breached a licence condition, and had given a direction to the RSE licensee to comply with the licence condition, the RSE licensee must attest whether the direction was complied with in the designated period, as required under paragraph 29JB(1) of the SIS Act. Also, where APRA had given directions to the RSE licensee in relation to modifying the RMS, the RSE licensee must attest whether it complied with those directions within the designated time period, as required under paragraph 29JC(1) of the SIS Act. 3. Trustee attestation of Compliance with the Superannuation Industry (Supervision) Act 1993 This requires the Trustee to attest whether the superannuation entity has complied with the requirements and conditions imposed on the superannuation entity in writing by APRA and relevant statutory and regulatory requirements under the SIS Act, including those listed specifically on the form. This includes compliance with the requirements and conditions imposed on the superannuation entity in writing by APRA and relevant statutory and regulatory requirements under the SIS Act and Regulations. Specific sections and regulations of the SIS Act are itemised on the form as the Trustee is required to attest to the compliance or non-compliance with each one. Important! The Trustee is required to attest to the compliance or non-compliance with each section and regulation as listed. This should be performed as follows: 1. Compliance - Where Y has been entered in item 3.1, item 3.2 should be left blank. Do not enter Y in any box in 3.2 or provide any commentary in the ‘extent’, ‘reason’ and ‘rectification action’ boxes. 2. Non-Compliance – Where N has been entered in item 3.1 (i.e. where the Trustee considers that they are not able to positively attest), each section and regulation reference listed in item 3.2 should be completed with a Y or N response.
Item 3.2 Sections and Regulations listed in item 3.2 that are not applicable to PSTs are considered to have been complied with when completing SRF 260.0 Trustee Statement. Do not enter n/a as SRF 260.0 Trustee Statement does not recognise this response. Unless there has been non-compliance with a Section or Regulation listed in item 3.2, Y should be entered for item 3.1. Note: SIS Act s153 and Regulations 2.10(1), 2.13(1), 2.21(3), 2.33(2) and 2.43(1) have been replaced by Section 1017D of the Corporations Act. Consequently the Section and Regulation references have now been removed. 4. Trustee attestation of compliance with the Financial Sector (Collection of Data) Act 2001 This requires the Trustee to attest whether the superannuation entity has complied with section 13 of the Collection of Data Act. This section relates to the reporting requirements specified in the reporting standards for each reporting form. 5. Trustee attestation of compliance with applicable provisions of the Corporations Act 2001 This requires the Trustee to attest whether the superannuation entity has or has not complied with the relevant requirements of the applicable provisions (to the extent applicable) of the Corporations Act. A number of applicable provisions are listed in the form and the Trustee is required to attest to each individually. This should be performed in the same manner as detailed under item 3 i.e. where Y has been entered in item 5.1, item 5.2 should be left blank. Important! The Trustee is only required to report on the sections listed in item 5.2. If the Trustee has breached a provision of the Corporations Act which is not listed in item 5.2, then this should not be reported. Note: Provisions of s 1013B and s 1013E are covered by s 1013C under item 5. 6. Trustee Signoff This item should be left blank when the annual return, including SRF 260.0 Trustee Statement, is submitted electronically using the Direct to APRA (D2A) software. APRA will issue a digital certificate to Trustees that lodge their own returns, which is viewed by APRA as a Trustee signing and authorising the return. Item 6 should be completed by an officer of the Trustee, who is authorised by the Trustee, when the annual return is lodged by an ‘Agent’ and not the Trustee. Refer additional details under “Trustee signing and authorisation” above.
[1] Other than an entity that was a small APRA fund, a self-managed superannuation fund, or a single member approved deposit fund at the end of the most recent reporting period under this reporting standard.
