Superannuation Alert - 16.08.12
Financial Services eBulletin - 16 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 6 August 2012, the Superannuation Industry (Supervision) Amendment Regulation 2012 (No. 2) was registered on the Federal Register of Legislative Instruments. According to the explanatory statement, the regulation implements three key Stronger Super reforms:
- "trustees of SMSFs to consider insurance for their members as part of the fund’s investment strategy;
- [requiring that] money and other assets of an SMSF be kept separate from those held by a trustee personally and by a standard employer-sponsor or an associate of a standard employer-sponsor…; and
- SMSF assets to be valued at market value for reporting purposes".
‘Market value’ uses the same 'arm's length' test provided in section 10(1) of the Superannuation Industry (Supervision) Act 1993. Note that the final regulation has not adopted the test initially proposed in the exposure draft regulations, which would have required SMSFs to value assets at 'net market value' (as is currently required for APRA-regulated funds).
The regulations commenced on 7 August 2012.
- On 9 August 2012, ASIC released consultation papers with proposed guidance on two aspects of the Future of Financial Advice reforms:
The proposed guidance on scaled advice will apply to all industry sectors, including superannuation, and will include practical guidance and examples about giving scaled personal advice and factual information to clients. Comments are due 20 September 2012.
- On 9 August 2012, ASIC announced the details of its review of the role of 'asset consultants' in the superannuation and managed investment sectors.
- On 10 August 2012, Treasury released for public consultation exposure draft legislation and accompanying explanatory materials for the intra fund consolidation of superannuation interests. The draft Superannuation Legislation Amendment (Stronger Super and Other Measures) Bill (No. 2) 2012: Intra-fund consolidation of superannuation interests will "expand the duties of superannuation trustees in the Superannuation Industry (Supervision) Act 1993, broadly requiring trustees to merge multiple interests within their fund where this is in their members’ interests". This exposure draft is a follow-on from the exposure draft released in March 2012. Submissions are due 16 August 2012.
- Federal Parliament resumed on 14 August for its 2012 Spring Sittings. Debate was scheduled to resume on the following superannuation-related Bills:
and the Superannuation Legislation Amendment (Trustee Obligations and Prudential Standards) Bill 2012 was passed in the Senate on 14 August and now awaits Royal Assent.
- Federal Parliament will also be considering a number of new superannuation-related Bills, proposed for introduction in the 2012 Spring Sittings, including the following:
- Superannuation Legislation Amendment Bill to implement the remaining features of MySuper and trustee governance and integrity measures;
- Tax Laws Amendment (Stronger Super Self Managed Superannuation Funds) Bill and Superannuation (Self Managed Superannuation Fund Auditors) Fees Imposition Bill to implement the Government’s response to the SMSF recommendations of the Super System Review;
- Superannuation Legislation Amendment (Stronger Super and Other Measures) Bill (No. 3) to mandate the use of data and payments standards and e-commerce for processing of rollovers and accepting of contributions – the 'SuperStream measures' – and to provide for the portability of retirement savings between Australia and New Zealand (announced on 29 October 2009);
- Superannuation Legislation Amendment (Stronger Super and Other Measures) Bill (No. 4) to expand existing reporting requirements for superannuation providers in accordance with the SuperStream measures, and compel funds to consolidate member accounts between funds where the ATO identifies relevant accounts for consolidation; and
- Financial Sector Legislation Amendment (Financial Claims Scheme) Bill 2012 to refine and improve the operation of the existing legislation and to implement commitments announced in 2011, following a public review process.
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.