Superannuation funds will need to process rollovers within three working days of receiving a completed rollover request, under new guidelines issued by the Australian Prudential Regulation Authority (APRA).
The new approach outlined by APRA as part of the implementation of the SuperStream arrangements will please many financial advisers who have claimed that superannuation funds, and some industry funds in particular, have been particularly tardy in processing rollovers.
Previously, superannuation funds were allowed 30 days to process rollover requests, although some financial planners have argued that it has taken much longer than this.
In a letter to Registrable Superannuation Entities (RSEs) issued this week, the regulator said the three-day processing time for rollovers should be achievable as a result of the changes inherent in the SuperStream arrangements, including electronic transmission of information and data.
The letter, signed by APRA general manager Helen Rowell, also makes clear that persistent failure to meet the three-day rollover requirement would raise the ire of the regulator, saying that delaying rollovers could give rise to an actual potential loss for the member and therefore trigger a breach reporting requirement.
However, it also said that given the time needed to implement the SuperStream changes, such breaches would not be reported until 1 January, next year.
