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Issue 680, 23 July 2018 
In this issue: 

 

Extending SuperStream to SMSF rollovers 

Treasury has released for consultation a draft of regulations to extend SuperStream to cover rollovers between an APRA-regulated fund and a self-managed superannuation fund (SMSF). 

Announcing the consultation, the Minister for Revenue and Financial Services, the Hon Kelly O’Dwyer MP, said the reform will allow SMSF members to initiate and receive rollovers electronically between an APRA fund and their SMSF. The Minister indicated that the benefits of electronic interactions between SMSFs and APRA funds will include: 

Once the regulations are finalised, it is intended they will apply to SuperStream rollovers to or from an SMSF requested on or after 30 November 2019. 

If you have any feedback that you would like ASFA to consider including in a submission to Treasury, please forward it to Ken Whitton by close of business Monday 30 July. 

The extension of SuperStream to SMSF rollovers was first announced by the Minister in April (see ASFA Action issue 668). 

 

 

Design and distribution obligations and product intervention power 

Treasury has released a revised draft of legislation imposing design and distribution obligations on issuers of financial products and providing ASIC with a product intervention power. 

The draft Treasury Laws Amendment (Design and Distribution Obligations and Product Intervention Powers) Bill 2018 seeks to implement the government’s response to recommendations made by the Financial System Inquiry (FSI). 

The proposed design and distribution obligations will require issuers of financial products to: 

In addition, distributors of financial products will be required to: 

Some financial products will be exempt from the design and distribution obligations, including MySuper products. 

The proposed intervention power will allow ASIC to regulate, or if necessary, ban potentially harmful financial and credit products where there is a risk of significant consumer detriment. The power is intended to enable ASIC to take action before harm, or further harm, is done to consumers. 

The revised draft Bill has been developed in response to the feedback received in response to a previous draft released in December 2017 (see ASFA Action issue 656). Treasury has also released an information note summarising the key changes from the previous version of the Bill. 

Treasury is seeking submissions by 15 August. 

Remaking of superannuation guarantee regulations 

Treasury has issued a draft of regulations to remake the Superannuation Guarantee (Administration) Regulations 1993, which are due to sunset (expire) on 1 October 2018. 

According to the explanatory material, the draft Superannuation Guarantee (Administration) Regulations 2018 make no alteration to the substantive meaning or operation of the existing regulations. Minor technical changes have been made to adopt current drafting practices and to remove redundant references. Consequential amendments have also been made to reflect updates to the Migration Regulations 1994, which changed the visa classes to which the existing regulations referred when identifying certain employees or payments that are excluded for superannuation guarantee purposes. 

Treasury is seeking comment on the draft regulations by 15 August. 

 

 

ASFA REGULATORY WATCHLIST

ASFA’s Regulatory Watchlist (ARW) tracks developments in Legislation, inquiries, consultations

and other regulatory announcements relevant to superannuation.

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