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Issue 784, 23 November 2020 
In this issue: 

 

Retirement Income Review: final report 

On Friday, the Government released the final report from the Retirement Income Review. 

The extensive report—over 600 pages in length—contains no formal recommendations but does include a number of key ‘observations’. At a very high level, these include: 

The Government has not released a detailed response to the report however the Treasurer and the Assistant Minister for Superannuation Financial Services and Financial Technology have commented as follows: 

“Through its work, the review has established a fact base that will improve understanding of how the retirement income system operates, better informing public policy and the retirement outcomes delivered to Australians. 

Importantly, the Review provides confirmation of the policy direction being pursued by the Morrison Government with respect to the importance of increasing the efficiency of the superannuation system and lifting home ownership rates – both identified as key drivers of an adequate retirement income. 

Specifically, the Government’s ‘Your Future, Your Super’ reforms will simplify and enhance member engagement with their superannuation and increase the efficiency of the superannuation system through lowering fees and improving returns, benefiting Australians by $17.9 billion over the next 10 years. 

Additionally, given the importance of home ownership to the financial security and wellbeing of Australians in retirement, the Government will continue to support measures to allow more Australians to buy their first home sooner, including through our First Home Loan Deposit Scheme, First Home Super Saver Scheme and HomeBuilder. 

The Government will continue to carefully consider the observations made in the Review together with the findings of related reviews including the Aged Care Royal Commission and remaining recommendations of the Productivity Commission’s report into Superannuation.” 

 

 

Promoting access to affordable advice for consumers: ASIC consultation 

ASIC has issued Consultation paper 332Promoting access to affordable advice for consumers (CP 332). In CP 332, ASIC is seeking feedback on: 

ASIC is also planning to hold a series of roundtables with industry and other stakeholders in early 2021 to discuss issues raised in submissions received relating to CP 332. 

If you have any feedback you would like ASFA to consider in responding to CP 332, please forward it to Maggie Kaczmarska by close of business Friday 8 January. 

 

 

Insurance in super: ASIC report 

ASIC has released a report detailing independent research on the experiences of superannuation fund members who directly engaged with their fund about insurance held through superannuation. 

The research, commissioned by ASIC from Susan Bell Research, explored the experiences of fifty superannuation fund members, who were not using a financial adviser and directly contacted their fund to make enquiries about or make changes to their insurance arrangements. 

The findings from the research have been released as Report 673 Consumer engagement in insurance in super (REP 673). Some key findings include: 

The research highlights some challenges for trustees, such as those associated with providing more tailored information for members. It also notes the opportunity for trustees to significantly improve their members’ experience by improving communication to members about insurance, including on their websites. The researcher concluded that many of the problems that members experienced may have been reduced or avoided if the information they sought was easy to find, clear and balanced. 

ASIC is encouraging trustees to consider the issues raised in the report and how they might improve the experience of their members when they seek to engage about insurance. 

ASIC notes that it has been working on a number of initiatives designed to improve trustee practices around insurance in superannuation, including examining default settings on occupational categories and analysing the value for money delivered to members. 

 

 

COVID-19 Coronavirus: early release of super – APRA data 

APRA has made its thirtieth weekly publication of industry-level data from its early release initiative data collection. 

The data covers applications made from inception of the early release initiative on 20 April. The data shows that from 20 April to 15 November: 

APRA has also published the twenty-ninth tranche of fund-level statistics from its early release data collection, revealing the number and value of the payments processed by each fund, as well as the time taken to make payments. 

 

 

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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