The Government on Tue 30.4.2013, released Exposure Draft – Superannuation Legislation Amendment (MySuper Measures) Regulation 2013 proposing to implement the remaining MySuper and governance measures as part of the Government’s Stronger Super reforms. The draft regulations will prescribe the details to support the measures contained in the 4 tranches of MySuper and governance legislation. Note that the fourth and final instalment of the legislation, the Superannuation Legislation Amendment (Service Providers and Other Governance Measures) Bill 2012, is still before Parliament.
Broadly, the draft regulations will prescribe the information and disclosure requirements for “product dashboards”, trustee and executive officer remuneration, investment portfolio holdings and fees for superannuation products in product disclosure statements (PDSs). The draft regulations will also require RSE licensees to include the latest product dashboard in the member’s periodic statement. Trustees will also be required to inform members that they can request written reasons for decisions made in relation to non-death benefit complaints. In addition, the draft regulations will:
- require dual regulated entities to inform ASIC of events that may lead to material adverse changes in their financial position;
- prescribe factors that may be used for a lifecycle investment strategy;
- permit the governing rules of a fund to limit contributions that are transfers from a foreign superannuation fund;
- clarify the circumstances in which a defined benefit member is excluded from certain MySuper requirements and give priority to accumulation interests in the event of a winding-up of a technically insolvent defined benefit fund;
- makes consequential amendments such as: requiring RSE licensees to provide APRA with early disclosure of successor fund transfers; actuarial requirements for SMSFs paying defined benefit pensions; disclosure of changes to SMSF information; First Home Saver Accounts; subject matter that will be dealt with in APRA prudential standards; and eligible rollover funds.
DATE OF EFFECT: The proposed amendments will commence on 1 July 2013 (or 1 July 2015 for the amendments in relation to dual regulated entities).
SUBMISSIONS due by 15 May 2013.
[LTN 80, 30/4/13]