The Parliamentary Joint Committee on Corporations and Financial Services on Mon 19.3.2012, tabled in the House of Reps its report into the Superannuation Legislation Amendment (MySuper Core Provisions) Bill 2011 and Superannuation Legislation Amendment (Trustee Obligations and Prudential Standards) Bill 2012.
The majority of the Committee recommended that the Bills be passed but called for the clarification of the exception for tailored MySuper plans for large employers with at least 500 members. The Committee also recommended that a clause be inserted to allow APRA to grant a grace period of up to 6 months for large employers whose fund member have fallen below the 500 member threshold as part of an annual check.
In a dissenting report, the Coalition members of the Committee called for the removal of the “scale test”. The Coalition members also said that any authorised MySuper product should be allowed to become a default superannuation fund under any industrial arrangement.
Broadly, the Bills define core aspects of MySuper products which will be the only products eligible to operate as a default superannuation fund from 1 October 2013. Additional duties are proposed for MySuper trustees, on top of new duties for all trustees of registrable superannuation entities (RSEs). From 1 July 2013, trustees and directors of RSEs will be required to “act fairly”, give priority to the interests of beneficiaries and ensure that beneficiaries are not adversely affected by any conflict of interests. The Bills (which are currently before the House of Reps) will also give APRA the power to make prudential standards in relation to superannuation.
[LTN 54, 20/3]