On Fri 21.7.2017, APRA released a final Prudential Practice Guide on successor fund transfers and wind-ups (SPG 227) for RSE licensees that may be considering a merger or wind-up. APRA Deputy Chairman, Helen Rowell, said that consolidation in the superannuation industry is expected to continue. To this end, SPG 227 can assist RSE licensees when reviewing their strategic and business plans, and considering the appropriateness of a successor fund transfer (SFT), Ms Rowell said.
SPG 227 covers the key areas of the best interests of beneficiaries requirement and “equivalent rights”, including rights under the trust deed, legally enforceable rights, rights as a “bundle of rights” and rights for the individual member/groups of members. It also covers MySuper to MySuper SFTs, and planning for a SFT, including an RSE licensee’s strategic direction, business plan and due diligence assessment. In a letter to RSE licensees, APRA noted that it received 9 submissions which have been addressed in revised SPG 227.
TAX RELIEF: Note that the Government proposed in the 2017-18 Federal Budget to extend the tax loss relief and CGT roll-over for APRA regulated funds from 1 July 2017 until 1 July 2020. The Treasury Laws Amendment (2017 Measures No 4) Bill 2017 will also provide tax relief for internal MySuper transfers within the same superannuation fund.
[APRA website: media release; TT Month; LTN 137, 21/7/17]