Superannuation Alert 17.12.15

Financial Services eBulletin - 17 December 2015

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

  • On 3 December 2015, the ASIC Corporations (Effect of Licensing Exemptions) Instrument 2015/1115 was registered. According to the Explanatory Statement, the purpose of this Instrument is to "ensure that subsection 911B(1) of the Act [Corporations Act 2001 (Cth)] operates in the same way for any licensing exemption granted by ASIC, irrespective of the source of power used by ASIC to grant the exemption."

  • On 10 December 2015, the exposure drafts of the Superannuation Legislation Amendment (Transparency Measures) Bill 2015 and the Superannuation Legislation Amendment (Transparency Measures) Regulation 2015 were released. According to the Bill's Explanatory Memorandum, the Bill:
    • amends the portfolio holdings disclosure requirements for a RSE by:
      • requiring them to "publish, for each of its investment options, information about the nature and value of financial products or other property that the RSE, or an associated entity of the RSE, has directly invested in"; and
      • repealing the "reporting obligations on parties to contracts and arrangements that acquire a financial product using the assets, or assets derived from assets, of an RSE;" and
    • requires superannuation funds with five or more members to "provide a product dashboard to a superannuation fund's ten largest choice investment options, as measured by funds under management, instead of for all investment options."
  • According to the Explanatory Statement accompanying the new instruments, the Regulation gives effect to the portfolio holdings disclosure and choice dashboard measures in the Bill. A Consultation Paper was released on the same day seeking comment on the proposed product dashboard comparative models. According to Treasury's related release, submissions are being accepted until 20 January 2016.

  • On 10 December 2015, the exposure draft of the Superannuation Legislation Amendment (Governance) Bill 2015 was released. According to the Explanatory Statement, the Bill seeks "to ensure employees have an opportunity to separately choose their superannuation fund for new enterprise agreements or workplace determinations that are made from 1 July 2016". The release issued on the same day explains that submissions are being accepted until 20 January 2016.

  • On 11 December 2015, ASIC released its report on Consumer testing of the Choice product dashboard (Report 455). Overall, the report found that there was a "more positive sentiment towards superannuation than in prior consumer testing of the MySuper Dashboard in 2013" (see Report 378). ASIC Commissioner Greg Tanzer was quoted in the related media release, commenting that to "be effective, it is important that the dashboard is useful to as wide an audience as possible. This testing should be helpful to superannuation trustees in engaging with consumers with varying levels of knowledge and interest in superannuation."

  • On 11 December 2015, APRA issued the revised draft Reporting Standard SRS 700.0 - Product Dashboard and draft Reporting Standard SRS 702.1 - Investment Performance (Non-MySuper Investment Options). In a letter sent to all RSE licensees on the same date, APRA explained that the revised draft reporting standards reflect the Government's proposed amendments to RSE and fund disclosure requirements, which were released a day earlier. APRA also indicated that further updated reporting standards will be issued and subject to further consultation once the content of the amendments are finalised early next year.

  • On 15 December 2015, the Government released its Mid-Year Economic and Fiscal Outlook 2015-16. The Outlook reports that the current deficit estimate for 2015-16 is now $37.4b – an increase of over two billion since the May 2015 Budget estimates.

  • On 15 December 2015, in a letter to RSE licensees APRA explained that it has now determined the following reporting standards (available here), which will apply to reporting periods ending on or after 1 July 2016:
    • Reporting Standard SRS 532.0 Investment Exposure Concentrations;
    • Reporting Standard SRS 533.1 Asset Allocation and Members’ Benefits Flows;
    • Reporting Standard SRS 534.0 Derivative Financial Instruments;
    • Reporting Standard SRS 702.0 Investment Performance; and
    • Reporting Standard SRS 703.0 Fees Disclosed.
  • On 15 December 2015, the ASIC Superannuation (Amendment) Instrument 2015/1098 was registered. According to the Explanatory Statement the Instrument extends the "exemption for RSE licensees in [CO 14/541] from the disclosure requirement in subsection 29QC(1) of the SIS Act until 1 February 2017."

  • The Financial Services Team at Lander & Rogers wishes you all the best for the festive season and 2016. There will be in a short break in our Super Alerts over Christmas and January. The Alerts will resume in the first week of February.

Further information

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.