Superannuation Alert - 22.08.12
Financial Services eBulletin - 22 August 2012
Lander & Rogers' Superannuation Alert is a brief overview of new developments in the superannuation industry. It is in addition to our Superannuation Update, which analyses the main developments of interest in more detail.
- On 14 August 2012 the Superannuation Legislation Amendment (Trustee Obligations and Prudential Standards) Bill 2012passed the Senate without amendment. This Bill contains the second tranche of legislation for the Stronger Super reforms. It now awaits Royal Assent.
- On 14 August 2012, Bernie Ripoll, the Parliamentary Secretary to the Treasurer, announced the third and final tranche of director liability reform legislation and released for public consultation an exposure draft of Personal Liability for Corporate Fault Reform Bill 2012: taxation laws amendment with accompanying explanatory materials. The draft Bill would make amendments to (among other things) section 57(7) of the Superannuation Guarantee (Administration) Act 1992. As explained in the materials:
Notwithstanding that section … 57(7) arguably only an accessorial liability on directors, the Government has decided to amend these provisions to remove this personal liability. The Government has retained the ability to serve a notice on a company by giving it to a director. Due to the unique function of the public officer of a company as created by statute, the liability of the public officer has been retained.
- On 15 August 2012 APRA published 4 new FAQs on its MySuper issues webpage:
- FAQ 15: What different arrangements for administration fees for employers will be allowed for authorised MySuper products?
- FAQ 16: Suppose money of a member is invested in an option that was not the default option at the time it was invested, and at that time the member gave an instruction to invest it in the non-default option. Does the member have to give a further instruction, or otherwise confirm the original instruction, in order to avoid the money being treated as an 'accrued default amount' that has to be moved to a MySuper product?
- FAQ 17: Many defined benefit members have a voluntary accumulation account in addition to their defined benefit interest. Does any money in the default option for these voluntary accounts also need to go into a MySuper product?
- FAQ 18: Currently, when a defined benefit member leaves their employer, the defined benefit lump sum benefit can default into another (accumulation) option. After 1 July 2013, will this money need to go into the MySuper option?
- On 15 August 2012 APRA published 12 new FAQs on its Prudential Standards webpage, including:
- FAQ 21: Is the requirement to prepare a transition plan for the ORFR still required if a fund will commence from 1 July 2013 with a fully funded operational risk reserve?
- FAQ 24: When would APRA be likely to grant an exemption from the requirement to have an internal audit function?
- FAQ 27: What is the definition of a material deviation as opposed to a significant breach in the trustee declarations in Prudential Standard SPS 220 Risk Management (SPS 220)?
- FAQ 29: How can RSE licensees gain further insight on APRA's requirements regarding risk appetite statements prior to Prudential Practice Guides being released?
- FAQ 32: A number of funds have invested in a service provider and have engaged that service provider. If a fund owns a service provider, do they still have to tender to determine that the related party is best?
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.