Financial Services eBulletin - 19 June 2014
The Lander & Rogers Superannuation Alert is a brief overview of new developments in the superannuation industry.
- On 5 and 6 June 2014, the following legislative instruments were registered, setting out requirements and including forms and specific instructions for provision of information to APRA:
- Financial Sector (Collection of Data) (reporting standard) - SRS 330.1 - Statement of Financial Performance, relating to the operations of a sub-fund, specifically investment, operations, insurance and membership activities.
- Financial Sector (Collection of Data) (reporting standard) - SRS 330.2 - Statement of Financial Performance, relating to the financial performance of a MySuper product.
- Financial Sector (Collection of Data) (reporting standard) - SRS 800.0 - Financial Statements, relating to the financial position of a small APRA fund or a single member approved deposit fund.
- Financial Sector (Collection of Data) (reporting standard) - SRS 801.0 - Investments and Investment Flows, relating to the asset allocation and investment flows of a small APRA fund or a single member approved deposit fund.
- Financial Sector (Collection of Data) (reporting standard) - SRS 001.0 - Profile and Structure (Baseline), relating to the profile and structure of each RSE licensee and each registrable superannuation entity within its business operations.
- On 10 June 2014, the legislative instrument Lodgment of statements by superannuation providers in relation to superannuation plans (other than SMSFs) for each financial year ended 30 June in accordance with the Taxation Administration Act 1953 was registered. It sets out the requirements for lodgment of member contribution statements.
- On 10 June 2014, the President of the Fair Work Commission (FWC) released a statement that the Expert Panel as purportedly reconstituted for the purposes of the 4 yearly review of default fund terms of modern awards would not deal further with the matter. The statement comes in consequence of the orders of the Federal Court on 6 June 2014 in Financial Services Council Ltd v Industry Super Australia Pty Ltd. The Court declared invalid President Ross' direction of 17 April 2014 appointing himself to the Expert Panel and further declared that the Expert Panel was not reconstituted as required under the Fair Work Act 2009 following the directions of President Ross on 7 March 2014 that Expert Panel Members Allen and Gibbs no longer deal with the matter.
- On 13 June 2014, ASIC Class Order [CO 14/541] was registered and commenced. It provides that an RSE licensee of a registrable superannuation entity does not have to comply with section 29QC(1) of the Superannuation Industry (Supervision) Act 1993 until 1 July 2015. The deferral of the obligation under section 29QC to provide consistent information is to allow ASIC further time to consult with the industry on the application of that section in light of the inherent complexity of the disclosure requirements in the Stronger Super reforms.
- On 13 June 2014, the Family Law (Superannuation) (Interest Rate for Adjustment Period) Determination 2014 was registered. It commences 1 July 2014 and provides for the interest rate for the adjustment periods of a base amount allocated to the non-member spouse under regulation 45D of the Family Law (Superannuation) Regulations 2001 in a court order or superannuation agreement.
- On 16 June 2014, the Senate Economics Legislation Committee tabled its report on the Corporations Amendment (Streamlining of Future of Financial Advice) Bill 2014. The Bill remains before the House of Representatives, and proposes changes to the Future of Financial Advice (FoFA) laws. The majority report from the Committee recommended overall that the Bill be passed, although made some suggestions for the Government to consider.
- On 16 June 2014, AISC released guidance to help superannuation entities disclose up to date information on their websites:"Regulatory Guide 252 Keeping superannuation websites up to date (RG 252) states that a website will be viewed as being up to date if the information is [updated] within 20 business days. For information on remuneration, a website needs to be updated within four months. These time frames are commonly referred to as a 'safe harbour' which means that super companies will be viewed as complying with the law if they update their website within these time frames. The timeframes are set out in Class Order [CO 14/509] Keeping RSEs’ superannuation websites up to date."
- On 17 June 2014, ASIC released Information Sheet 197 Fee and cost disclosure requirements for superannuation trustees (INFO 197). The requirements are part of the Stronger Super reforms which start on 1 July 2014. ASIC states that its "facilitative approach to compliance with fee and cost disclosure requirements has been extended to 1 July 2015 for superannuation funds and managed investment schemes. ASIC will take a measured approach where inadvertent breaches arise or system changes are underway, provided that industry participants are making reasonable efforts to comply".