Superannuation Alert - 20 February 2013

Financial Services eBulletin - 20 February 2013

The Lander & Rogers Superannuation Alert is a brief overview of new developments in the superannuation industry and is in addition to our Superannuation Update, which analyses the main developments of interest in more detail.

  • Earlier this month, Treasury released its Consultation Outcome paper which indicated that the Government will make changes to the draft Superannuation Legislation Amendment Regulation 2012 which deals with aspects of MySuper and governance reforms. The Government proposes to amend the following areas of the Regulation:
    • notification – accrued default amounts (schedule 3, item 6);
    • types of insurance (schedule 3, item 2 – regulation 4.07D);
    • significant event notices (schedule 1, item 1);
    • minimum level of insurance to MySuper members (schedule 2, item 1);
    • definition of insured benefits (schedule 3, item 2 — regulation 4.07C);
    • grandfathering of insurance in successor funds (schedule 3, item 2 — Regulations 4.07D and 4.07E); and
    • prohibition of self-insurance (schedule 3, item 2 — regulation 4.07E).
  • On 14 February 2013, ASIC published information to help the trustees (and others) understand obligations under the Stronger Super reforms. The guidance is provided in a FAQ format which covers general MySuper issues as well as requirements in relation to the product dashboard and portfolio holdings. The FAQs will be updated on an "as needs basis". These are not intended to be a substitute for detailed guidance from ASIC. Information sheets on transitional disclosure, product dashboard and portfolio holdings disclosure requirements will be released closer to 1 July 2013 with formal guidance issued later in the year.
  • A reminder that submissions to APRA are due by 5 March 2013 regarding the 11 December 2012 discussion paper 'Prudential guidance for superannuation'.
  • ASIC will host Future of Financial Advice workshops in capital cities around Australia from 19 February to 12 March 2013. For more information, click here.
  • The Superannuation Complaints Tribunal published its Quarterly Bulletin (Issue number 70) covering the period 1 October 2012 to 31 December 2012. The SCT provides a statistical overview of the complaints received and resolved during the quarter. Furthermore, the SCT reports that it will launch a new website this month which will include an online complaints lodging function.

All information on this site is of a general nature only and is not intended to be relied upon as, nor to be a substitute for, specific legal professional advice. No responsibility for the loss occasioned to any person acting on or refraining from action as a result of any material published can be accepted.