Superannuation Alert - 5.7.12

Financial Services eBulletin - 5 July 2012

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.

  • On 23 June 2012 the Minister for Financial Services, Bill Shorten issued a media release announcing the replacement for the accountants' exemption in respect of providing superannuation and financial advice. The new limited Australian Financial Services Licence will allow accountants to advise on "'class of product advice' on basic deposit products, general and life insurance, securities, and simple managed investment schemes" in addition to SMSFs and superannuation generally. The limited licence will extend the consumer protection provisions of the Corporations Act including those relating to the best interests duty in the Future of Financial Advice reforms. The licence will not allow specific product recommendations. The Minister also announced that there will be a "streamlined transition period that will be available for accountants between 1 July 2013 and 1 July 2016". 

  • On 27 June 2012 the following Bills received Royal Assent: 

  • On 27 June 2012 amendments to the Superannuation Legislation Amendment (MySuper Core Provisions) Bill 2011 were cleared for introduction in Federal Parliament. According to the explanatory memorandum, the Bill: 
    • "defines a MySuper product;
    • limits a regulated superannuation fund to offering only one MySuper product, except in certain circumstances;
    • allows registrable superannuation entity (RSE) licensees to apply to the Australian Prudential Regulation Authority (APRA) for authorisation to offer a MySuper product;
    • sets out rules on the payment of contributions and account transfers for MySuper products; and
    • sets out the fees that can be charged and the basis on which those fees can be charged to members of a MySuper product." 

  • On 29 June 2012 the Productivity Commission released a draft report as part of its role in designing "a process for the selection and ongoing assessment of superannuation funds for nomination as default funds in modern awards." Written submissions are due by 3 August 2012. Public hearings will be held in Melbourne on 30 July 2012 and in Sydney, on 31 July 2012. The final report is expected to be forwarded to the Government by 6 October 2012. 

Further information

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