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Issue 594, 1 March 2016 

In this issue: 

 

Lost members—recognition of online and electronic interactions 

The government has finalised a proposed change to the definition of ‘lost member’, first announced in the May 2015 Budget and released in draft in September 2015 (see ASFA Action issue 566 and issue 581). 

The Treasury Laws Amendment (2016 Measures No. 1) Regulation 2016 amends the definition of ‘lost member’ in the Superannuation Industry (Supervision) Regulations 1994 to specifically recognise online and electronic interactions between superannuation providers and fund members. The amendment will apply from 1 July 2016. 

Importantly, the explanatory statement to the amending regulation also indicates that the government has decided it will not proceed at this time with two other proposed changes to the definition of ‘lost member’ due to concerns raised during consultation. Those changes would have removed the ‘employer sponsored’ limb from the definition of ‘inactive member’, and allowed eligible rollover funds to proactively consolidate accounts they hold into the active superannuation accounts of members without their consent. 

 

Productivity Commission study on efficiency 

The government released the Terms of Reference for a Productivity Commission study to develop criteria to assess the efficiency of the superannuation system on 17 February. The Commission is scheduled to complete the study by November 2016. We anticipate an issues paper will be released in the next few months and ASFA will respond with a submission. 

This study is in response to a recommendation from the Financial System Inquiry. ASFA considers that this study is crucial to the future of the industry and it is imperative that the system is fairly measured. 

ASFA will be considering key design principles that could be utilised as a reference point for determining the criteria for the measurement, benchmarking and quantification of efficiency. 

ASFA has formed a working group to develop these key design principles and respond to the Productivity Commission study. This is being chaired by an ASFA director and is led by Director of Policy Fiona Galbraith from the ASFA Policy Secretariat. If you have any comments or feedback, email Fiona Galbraith. 

 

ASIC: remaking dollar disclosure class orders 

ASIC has released CP 253 Remaking and repealing ASIC class orders on dollar disclosure (CP 253), which proposes remaking three existing class orders dealing with relief from the ‘dollar disclosure’ requirements in the Corporations Regulations 2001. ASIC has indicated that it is proposing not to remake a further two class orders on dollar disclosure. 

The five class orders are all due to sunset (expire) between 1 October 2016 and 1 April 2017. 

The three class orders that ASIC is proposing to remake, without significant changes, are: 

ASIC is intending to repeal, rather than remake, two class orders: 

ASIC has indicated that it does not believe the relief provided by the latter two class orders is being relied on, or is necessary. 

Comments on CP 253 are due by 30 March 2016. 

 

APRA approved audit form 

APRA has released the superannuation approved audit form for reporting periods commencing on or after 1 July 2015. 

The form, which has been updated to include references to the new accounting standard AASB 1056 Superannuation Entities, is available on the APRA website. 

 

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