Superannuation Alert - 3.10.12
Financial Services eBulletin - 3 October 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 21 September 2012, the Superannuation Complaints Tribunal released its quarterly Bulletin for the period 1 April to 30 June 2012. The Bulletin provides quarterly statistics on the type of complaints received and provides an update on the Tribunal's work in "re-engineering the Tribunal's complaint process".
- On 24 September 2012, the ATO released a decision impact statement on the case of Walsh and Commissioner of Taxation; Bridge and Commissioner of Taxation AATA 451 concerning "Whether the superannuation contributions tax was constitutionally valid in its application to three taxpayers who held senior positions in the South Australian public service and who were members of Constitutionally Protected Superannuation Funds."
- On 26 September 2012, APRA published 5 new FAQs on its MySuper issues webpage:
- FAQ 20: Can RSE licensees apply for a MySuper authorisation that involves the rebranding of an existing default investment option?
- FAQ 21: Is APRA charging a fee for processing MySuper applications?
- FAQ 22: The Superannuation Legislation Amendment (Further MySuper and Transparency Measures) Bill 2012 indicates that there is to be no subsidisation between MySuper products and choice products within a fund. Does this apply to aspects of a fund’s operations, such as marketing or administration costs, or can these be shared across a fund?
- FAQ 23: Can a large-employer MySuper product be 'white-labelled' for another non-associated large-employer product?
- FAQ 24: In the event of the death of a member, an RSE licensee may choose to invest life insurance proceeds in an investment option with a conservative investment strategy. Will this practice be permitted to continue for a member who has an interest in a MySuper product, or will the proceeds need to be invested in the MySuper product?
- On 26 September 2012, APRA published 5 new FAQs on its Prudential Standards webpage:
- FAQ 34: Will APRA require the annual board performance assessment to be conducted by an external independent party?
- FAQ 35: Does the remuneration policy cover the remuneration of non-executive directors?
- FAQ 36: Paragraph 5(a) of draft Prudential Standard SPS 521 Conflicts of Interest defines a relevant duty to be 'any duty owed by the RSE licensee, or a Responsible Person of the licensee, to beneficiaries or any other person'. When is a relevant duty provided to a person other than a beneficiary of the RSE?
- FAQ 37: Does the offshoring provision apply only to new contracts entered into? How will existing arrangements be dealt with?
- FAQ 38: Where new services are added by a service provider over time, and these services are conducted overseas, does the RSE licensee need to consult with APRA?
- On 28 September 2012, ASIC released a new Consultation Paper (CP 189) on the "Future of Financial Advice" reforms concerning conflicted remuneration. The consultation paper sets out ASIC’s proposals for guidance about complying with the provisions on conflicted remuneration and other banned remuneration in Divisions 4 and 5 of Part 7.7A of the Corporations Act 2001 which apply in relation to financial product advice given to retail clients. ASIC is seeking feedback on the proposals from Australian financial services licensees, product issuers and consumers.
- On 2 October 2012, Treasuryreleased for consultation the Exposure Draft - Superannuation Data and Payment Regulations (Rollover and Contributions) as well as an associated explanatory statement and 2 forms. The draft Regulations are intended to support the operation of the superannuation data and payment standards under which superannuation funds and employers will be required to send contributions and rollovers electronically.
- On 3 October 2012, APRA released its Proposed Final MySuper Authorisation and Transition Package, comprising the proposed final application form and instructions for the authorisation of MySuper products. It has also released the "proposed final" Prudential Standard SPS 410 MySuper Transition on transition to MySuper which sets out requirements for the movement of accrued default amounts into a suitable MySuper product before 1 July 2017.
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.