The highlights of this week’s Super Alert are ASIC’s revised RG97, Treasury’s release of its Retirement Income Review consultation paper and APRA’s revised draft SPS 250 on Insurance in Superannuation and consultation draft SPG 516 on Business Performance Reviews.
Standing Committee on Economics – Transcript of superannuation sector public hearing
On 21 November 2019, the House of Representatives Standing Committee on Economics released a transcript of the public hearing which occurred that day. The Committee heard from representatives of selected superannuation funds and related bodies in the superannuation industry.
The Committee is reviewing Australia’s four major banks and the superannuation sector and there have been hearings over a number of days.
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Retirement Income Review consultation paper
On 22 November 2019, the Treasury released its Retirement Income Review consultation paper. As previously mentioned in our Super Alert of 4 October 2019, the review is an independent review of the retirement income system and the appointed panel must report to the Government by June 2020.
The consultation questions include:
- ‘What factors should be considered in assessing how the current settings of the retirement income system (e.g. tax concessions, superannuation contribution caps, and Age Pension means testing) affect its fiscal sustainability?’; and
- ‘Is there sufficient integration between the Age Pension and the superannuation system?’
Submissions on the consultation paper close on 3 February 2020.
Please click here and here to read more.
APRA releases draft revised SPS 250 for consultation
On 25 November 2019, APRA released for consultation its proposed revisions to SPS 250 Insurance in Superannuation and a related letter to all RSE licensees.
The proposed revisions are aimed at ‘improving superannuation member outcomes by helping trustees select the most appropriate policies for their members, and monitor their ongoing relationships with insurers’.
Submissions on the consultation will close on 3 February 2020.
Please click here and here to read more.
APRA releases superannuation statistics for September 2019
On 26 November 2019, APRA released its superannuation performance and MySuper statistics for the quarter ended 30 September 2019. One of the key statistics is that ‘[s]uperannuation assets totalled $2.9 trillion at the end of the September 2019 quarter’.
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APRA releases final version of SPG 516
On 27 November 2019, APRA released the final version of Prudential Practice Guide SPG 516 Business Performance Review and an associated letter to all RSE licensees.
According to APRA, the changes ‘seek to ensure all RSE licensees clearly understand APRA’s expectations in respect of undertaking the [Business Performance Review] and the outcomes assessment [under SPS 515]’.
Please click here and here to read more.
Treasury Laws Amendment (Your Superannuation, Your Choice) Bill 2019
On 27 November 2019, the Treasury Laws Amendment (Your Superannuation, Your Choice) Bill 2019 was introduced into the House of Representatives.
According to the Explanatory Memorandum, the Bill reintroduces amendments to the Superannuation Guarantee (Administration) Act 1992 (Cth) to ‘ensure employees under workplace determinations or enterprise agreements have an opportunity to choose the superannuation fund for their compulsory employer contributions’.
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Family Law Amendment (Western Australia De Facto Superannuation Splitting and Bankruptcy) Bill 2019
On 27 November 2019, the Family Law Amendment (Western Australia De Facto Superannuation Splitting and Bankruptcy) Bill 2019 was introduced into the House of Representatives.
According to the Explanatory Memorandum, this Bill will:
- ‘give effect to a referral of power from Western Australia to the Commonwealth in respect of superannuation matters in family law proceedings for separating de facto couples in Western Australia’; and
- ‘also extend federal bankruptcy jurisdiction to the Family Court of Western Australia to hear bankruptcy proceedings concurrently with family law proceedings, where appropriate’.
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Financial Sector Reform (Hayne Royal Commission Response – Stronger Regulators (2019 Measures)) Bill 2019
On 28 November 2019, the Financial Sector Reform (Hayne Royal Commission Response—Stronger Regulators (2019 Measures)) Bill 2019 was introduced into the House of Representatives.
According to the Explanatory Memorandum, it implements the following recommendations from the ASIC Enforcement Review Taskforce Report:
- ‘to harmonise and enhance ASIC’s search warrant powers’;
- ‘to allow ASIC ‘to receive telecommunications intercept material to investigate and prosecute serious offences’;
- ‘to strengthen ASIC’s licensing powers’; and
- ‘to extend ASIC’s banning powers’.
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ASIC’s revised RG97
On 29 November 2019, ASIC released finalised Regulatory Guide 97: Disclosing fees and costs in PDSs and periodic statements (RG 97) and registered the ASIC Corporations (Disclosure of Fees and Costs) Instrument 2019/1070 (Instrument) on the Federal Register of Legislation.
According to ASIC, RG 97 and the Instrument will apply to PDSs issued on or after 30 September 2020, and to periodic statements for reporting periods commencing on or after 1 July 2021 (unless a trustee elects for the Instrument to apply to earlier reporting periods).
Please click here and here to read more.
This article was written by Natalie Cambrell, Partner, Sanela Osmanovic, Associate and Joseph Cheung, Solicitor.