APRA has written to the trustees of large super funds about potential delays in processing rollovers resulting from the ATO IT outage.
ATO online services have been suffering from an IT failure early in the week, which could impact on the ability of Registrable Superannuation Entities (RSE) – APRA-regulated super funds – to process rollover applications in a timely manner.
APRA has taken the step of writing to RSEs to notify them that regulatory action won’t be taken in response to delays resulting from the IT outage.
“APRA is aware that the ATO is currently experiencing a major IT outage. The outage includes several web-based services used routinely, and in some cases compulsorily, by RSE licensees and their administrators to process rollovers and verify the details of RSEs and individuals,” says the letter from APRA.
“APRA is also aware that during the period of the outage, and potentially for some days afterwards as services are restored and bottlenecks relieved, it may be impossible for RSE licensees to meet certain regulatory time limits, including the requirement to process rollovers within three days under Superannuation Industry (Supervision) Regulation (SISR) 6.34A. ”
“APRA notes the importance of the three-day rollover rule in ensuring that trustees continue to prioritise efficient rollover processing and therefore requires compliance at all times. However, the approach to enforcement of this requirement recognises that there may be occasions where, for reasons outside the control of the trustee, 100% compliance may not be possible. ”
“In this instance, breaches of SISR 6.34A are inevitable and APRA will take no action in relation to breaches directly related to the ATO IT outage. APRA also advises RSE licensees that it is unnecessary to provide APRA with formal notification of breaches which are a direct result of this ATO IT outage.”