Additional ID checks causing SuperStream rollover delays
The SMSF Association has expressed concern that additional ID checks being imposed by APRA-regulated funds beyond the SuperStream standards are impeding the efficiency of the new SuperStream regime.
From 1 October this year, the SuperStream standards became mandatory for all rollovers to and from SMSFs. The new standards require a trustee to roll over or transfer an amount no later than three business days after the trustee received the rollover or transfer request, or if the trustee requires further information, the date the trustee receives that information.
SMSF Association deputy chief executive Peter Burgess said the new SuperStream system is not working as efficiently as the association would like, with rollovers not occurring in the prescribed three days.
“We are somewhat concerned by some of the APRA-regulated funds that seem to be taking a long time to roll money to SMSFs, even where the request complies with the SuperStream standards,” explained Mr Burgess.
Mr Burgess said there are situations happening where the trustee has done everything correctly under the SuperStream rules but the APRA fund is still imposing ID checks on the trustee, which are unnecessary in some cases.
“We understand that with cyber-security being such a big issue, it’s important that the APRA-fund does make sure that the money is transferred to the correct bank account but I think we have to have a balance in place,” Mr Burgess told SMSF Adviser.
“Where there is a match in the data that they’re receiving from the ATO and it matches their own data, then there shouldn’t be a need for further checks.”
Mr Burgess said there is further work that needs to be done in this area.
“We need to get the right balance between checks which ensure there is no risk of fraud, but at the same time, doesn’t impose unreasonable requirements on SMSF trustees,” he said.
Miranda Brownlee
Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.
Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates.
Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.
