The Lander & Rogers Superannuation Alert is a brief overview of new developments in the superannuation industry.

Type Subject matter Source Description

Federal Parliament

Amendments to Treasury Laws Amendment (Improving Accountability and Member Outcomes in Superannuation Measures No. 1) Bill 2017

Government Sheet: Proposed Amendments

On 8 November 2017, the Federal Government released an amendment sheet setting out its proposed changes to the Treasury Laws Amendment (Improving Accountability and Member Outcomes in Superannuation Measures No. 1) Bill 2017 (Bill). The amendments would apply to Schedule 6 of the Bill (Portfolio holdings disclosure) and clarify the effect of the changes in relation to pooled superannuation trusts, choice products, and MySuper products.

Treasury update

Comprehensive Income Products for Retirement (CIPR) framework

Minister's Speech

Discussion paper dated 15 December 2016

Factsheet released 15 December 2016

On 14 November 2017, Financial Services Minister Kelly O'Dwyer delivered a speech via video message to the Financial Services Council's Retirement Income Products Conference in Sydney. Ms O'Dwyer addressed the results of the Government's consultation earlier this year on Comprehensive Income Products for Retirement (CIPR), which the Government proposes to call 'MyRetirement products' as a "more consumer-friendly and meaningful label".

In the speech, Ms O'Dwyer said that the consultation had identified four key issues:

  1. "some stakeholders expressed a desire for funds to hold more than one CIPR — with different CIPRs offered to different segments of the membership";
  2. "there was a range of views on who should and shouldn't be offered a CIPR";
  3. "there was a broad range of views on likely extent of take-up by trustees and members, and the effectiveness of 'the nudge'"; and
  4. "the consultation further convinced [her] of the absolute need to have a retirement income framework".

Ms O'Dwyer went on to say that "while trustees have a number of important obligations — including to consider the investment strategy, risk and appropriateness of insurance — it is surprising that there is no specific obligation to consider the needs of members in retirement".

Ms O'Dwyer also said "Trustees should be assisting their members by designing and offering appropriate retirement income solutions and by reducing the complexity of member decisions around retirement. What's more, a retirement income framework would complement the objective of superannuation and align with other countries where retirement savings schemes typically provide a 'decumulation' structure".

Ms O'Dwyer concluded by saying she believes "further consultation is necessary to ensure we get the principles underpinning the retirement phase right".

ASIC Regulatory Guidance: Financial Services and Credit Panel

Media release in relation to RG 263

On 16 November 2017, ASIC released Regulatory Guide 263 (RG 263) which "sets out the principles and processes of the Financial Services and Credit Panel (FSCP)".

RG 263 states that the FSCP will be responsible for "determining whether ASIC will make a banning order against individuals for misconduct in the course of providing retail financial services and/or engaging in certain credit activities where the matter is appropriate for peer review because of its significance, complexity or novelty".

The process of an FSCP hearing will "closely follow those set out in RG 8, which explains the principles and procedures [ASIC] adopt[s] when conducting administrative hearing to give a person their statutory right to be heard".