Issue 589, 14 December 2015
In this issue:
- Treasury consultation on draft legislative framework for choice product dashboards and portfolio holdings disclosure
- Feedback sought on APRA consultation: proposed amendments to product dashboard requirements
- Treasury consultation on draft legislation to extend choice of fund
- ASIC: extension to existing relief for long-term performance reporting (for information)
Treasury consultation on draft legislative framework for choice product dashboards and portfolio holdings disclosure (feedback sought)
On 10 December the Treasury released exposure draft legislation to amend the Corporations Act 2001 provisions that establish the legislative frameworks for choice product dashboards and portfolio holdings disclosure and a consultation paper on product dashboard comparison metrics for comment. The draft legislation and consultation paper can be found here.
The amendments in the exposure draft legislation seek to introduce choice product dashboards to a superannuation fund’s top ten (by value) investment options and to require the disclosure of a superannuation fund’s portfolio holdings of assets held directly and by associated entities. Both disclosure requirements are narrower and hence more practical to implement than was originally foreshadowed. This follows representations made over an extended period.
To enable consideration to be given to the practical application of the new choice product dashboard and portfolio holdings disclosure regimes, exposure draft regulations have also been released for comment.
Consumer testing has indicated that the introduction of a comparison measure (to a benchmark) on the product dashboard would be welcomed by consumers. A consultation paper has been released for comment to investigate proposed models of comparison.
If you have any comments you would like ASFA to consider including in a submission to the Treasury on this consultation, given the closing date for submissions is 20 January 2016, please forward them to Fiona Galbraith or David Graus by close of business Monday 11 January 2016.
APRA consultation: proposed amendments to reporting standards for product dashboard requirements (feedback sought)
Following Treasury’s release of the draft transparency legislative framework, APRA has released draft revised reporting standards, copies of which can be found here.
If you have any comments you would like ASFA to consider on APRA’s draft revised reporting standards, given the closing dated for submissions is 22 January 2016, please forward them to Fiona Galbraith by close of business Wednesday 13 January 2016.
Treasury consultation on draft legislation to extend choice of fund (feedback sought)
On 10 December the Treasury released exposure draft legislation that would extend choice of fund, in regards to employer contributions, to all employees under enterprise agreements and workplace determinations for comment, copies of which can be found here.
Under the Superannuation Guarantee (Administration) Act 1992 (SGAA), most employees currently have the opportunity to choose the superannuation fund into which their Superannuation Guarantee (SG) contributions are paid.
There are currently some exemptions from an employer being required to offer employees a choice of fund. One such exemption is where contributions are made in accordance with an enterprise agreement or workplace determination.
The government proposes changes to remove deemed compliance with choice for contributions under enterprise agreements and workplace determinations made from 1 July 2016.
One other proposed amendment would ensure employers are not penalised with a SG shortfall for employees in certain defined benefit schemes.
If you have any comments you would like ASFA to consider on the exposure draft legislation, given the closing date for submissions is 20 January 2016, please forward them to Julian Cabarrus by close of business Monday 11 January 2016.
ASIC: extension to existing relief for long-term performance reporting (for information)
As flagged in ASFA Action Issue 586 dated 23 November 2015, ASIC has released ASIC Corporations (Amendment) Instrument 2015/1073 that extends existing relief in regards to long-term performance reporting. Copies of the explanatory statement and instrument can be found here.
