Issue 541, 18 June 2014
In this issue:
- ASIC issues Class Order 14/509 and RG 252 Keeping superannuation websites up to date
- ASIC issues Class Order 14/541 deferring the operation of section 29QC
- ASIC releases information sheet Fee and cost disclosure requirements for superannuation trustees
- Senate Economics Legislation Committee releases FoFA report
- Family Law superannuation interest rate determination
ASIC issues Class Order 14/509 and RG 252 Keeping superannuation websites up to date
As flagged in ASFA Action issue 540, ASIC has released Class Order 14/509 Keeping RSEs’ superannuation websites up to date [CO 14/509], providing Registrable Superannuation Entity (RSE) licensees with ‘safe harbour’ time frames for publishing certain documents and information required under section 29QB of the Superannuation Industry (Supervision) Act 1993 (SIS Act) on their websites. The specific details of what must be published are set out in regulations 2.37 and 2.38 of the Superannuation Industry (Supervision) Regulations 1994.
ASIC has also released Regulatory Guide 252 Keeping superannuation websites up to date [RG 252], providing guidance on the operation of CO 14/509. The tables in RG 252 illustrate the operation of CO 14/509 using the concepts of ‘triggers’ and ‘release times’ as a simple way of dealing with the complexities of regs 2.37 and 2.38, although the Class Order does not use these terms.
The release times are:
- twenty business days, except for remuneration items
- Four months for remuneration items (being items 5 to 16 in reg 2.37(1)).
ASIC issues Class Order 14/541 deferring the operation of section 29QC
As also flagged in ASFA Action issue 540, ASIC has released Class Order 14/541 [CO 14/541] deferring the operation of section 29QC of the SIS Act until 1 July 2015, so it can further consult with industry on the application of that section.
Section 29QC states that a superannuation trustee must use the same calculation when providing information to a person, or on a website, as it does when giving the same or equivalent information to APRA under a reporting standard.
ASIC has reiterated that APRA’s Reporting Standards SRS 700.0 Product Dashboard (MySuper) and SRS 703.0 Fees Disclosed continue to apply regardless of the deferral of section 29QC.
ASIC releases information sheet Fee and cost disclosure requirements for superannuation trustees
ASIC has released information sheet 197 Fee and cost disclosure requirements for superannuation trustees [INFO 197], which gives guidance to superannuation trustees and other persons in relation to the fee and cost disclosure requirements in Schedules 10 and 10D of the Corporations Regulations 2001 (Corporations Regulations).
The information sheet clarifies, among other things, ASIC’s expectations on the calculation of indirect costs, how performance and advice fees should be disclosed and how fee disclosure should be treated from a tax perspective.
Trustees and responsible entities will have to disclose fees and costs in accordance with Schedules 10 and 10D from 1 July 2014. ASIC has advised that they will adopt a facilitative approach to compliance with the fee and cost disclosure requirements until 1 July 2015.
Senate Economics Legislation Committee releases its report on FoFA
The Senate Economics Legislation Committee has tabled its report into the Federal Government’s proposed amendments to the Future of Financial Advice (FoFA) legislation. A copy of the report can be accessed here.
There is a majority report recommending overall passage of the Bill, following consideration by the Government of a number of suggestions made in regard to the drafting of the Explanatory Memorandum and the Bill. There are also reports from the Labor Senators and the Greens recommending that the Bill not be passed.
Family Law superannuation interest rate determination
The Family Law (Superannuation) (Interest Rate for Adjustment Period) Determination 2014 was registered on 13 June 2014, and will commence on 1 July 2014.
The Determination provides for the interest rate for adjusting entitlements under certain orders or agreements made under the Family Law Act 1975, and for splitting future superannuation benefits for the adjustment period that is the 2014/2015 financial year. The Determination also provides the method by which the interest rate is calculated for that purpose for an adjustment period that includes a period within that financial year.
The interest rate for the adjustment period, being the financial year beginning on 1 July 2014, is 5.4 per cent. For how to apply the rate to full year, part year and across financial year periods, refer to the Determination and its Explanatory Statement.
