Superannuation Alert 12.8.14

Financial Services eBulletin - 12 August 2014

The Lander & Rogers Superannuation Alert is a brief overview of new developments in the superannuation industry.

  • On 7 August 2014, the Financial Performance of Australia's Superannuation Products (August 2014) Report (Report) prepared by Deloitte Access Economics was released. The Report focussed on assessing the financial performance of mandatory employment-based retirement income savings across 12 jurisdictions. The Report demonstrated that Australia's superannuation system:
    • 'is characterised by a relatively high reliance on active mandates including an emphasis on investments in equities, and the ability to support individualised services' which add both benefits and costs to the system;

    • 'delivered high gross returns, and high risk-adjusted returns, over an extended period before the GFC';

    • 'but, has provided below average returns since then, likely associated with macroeconomic factors, such as a relatively modest recovery of the local share market and the impact of a high Australian dollar on returns from overseas investments';

    • 'appears to have relatively high costs' which are likely to be influenced by the different regulatory requirement and product features in the Australian system; and

    • achieved the third highest returns of the 12 jurisdictions included in the review, and taking a broad perspective across a longer timeframe.

  • On 8 August 2014, ASIC clarified how it will apply the wholesale investor test for self-managed superannuation funds (SMSF). ASIC's has withdrawn QFS 150 'When financial services are provided to a trustee of a superannuation fund, are they provided to a retail client?', which was issued in 2004. ASIC's statement "14-191MR Statement on wholesale and retail investors and SMSFs" indicating its revised approach can be accessed here.

  • The ATO has updated its list of accredited gateway operators for the implementation of the SuperStream Data and Payment Standards. Gateways facilitate the transfer of electronic data messages and supports an employer sending information about super contributions for an employee to their super fund. The superannuation transaction network (STN) 'ensures that this data exchange occurs in a reliable, efficient and secure manner.' Accredited members of the network include - ClickSuper, GBST, LUCRF Super, MessageXchange, Oban, Ozedi, Sunsuper, SuperChoice and Westpac Institutional Bank. 

Further information

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