Superannuation Alert - 1.11.12
Financial Services eBulletin - 1 November 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 October ASIC announced that it will be taking an approach that facilitates industry adaption during the implementation of the FoFA reforms from 1 July 2013. The announcement notes that "ASIC will adopt a measured approach where inadvertent breaches arise or systems changes are underway, provided industry participants are making reasonable efforts to comply."
- On 24 October 2012 APRA updated its Prudential Standards and Guidance - Frequently Asked Questions page to include 8 new FAQs. The new FAQs include the following topics:
- adequacy of resources policy for RSE licensees;
- operational risk financial requirements; and
- defined benefit shortfall limits.
- On 24 October APRA also updated its MySuper FAQs page by updating the existing FAQ regarding investment of life insurance proceeds in the event of the death of a member and by adding a new FAQ addressing when RSE licensees must begin paying contributions into a MySuper product.
- On 30 October 2012 the Fair Work Amendment Bill 2012 was introduced into the House of Representatives and read a first time. Of particular significance are the changes proposed to default superannuation funds in modern awards. The accompanying explanatory memorandum states that the Bill proposes a review of default fund terms every 4 years by the Fair Work Commission and the establishment of an Expert Panel to assess default funds.
- Debate over the third tranche of the Government's MySuper legislation (the Superannuation Legislation Amendment (Further MySuper and Transparency Measures) Bill 2012) is due to resume in the House of Representatives on 1 November 2012. Among other things, the Bill relates to fees payable in relation to MySuper products, insurance, default superannuation funds and the role of APRA.
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.