Issue 801, 28 April 2021
In this issue:
- Your Future, Your Super: consultation on draft regulations
Your Future, Your Super: consultation on draft regulations
Treasury this morning released a draft of regulations to support the Government’s Your Future, Your Super (YFYS) reforms, announced in the October 2020 Budget.
As announced, that package contains measures to address underperformance of superannuation products, ‘stapling’ of members to superannuation funds and imposes a ‘best financial interests’ duty on trustees. The Treasury Laws Amendment (Your Future, Your Super) Bill 2021 (YFYS Bill), introduced into Parliament in February to implement the reforms, also contains some amendments in relation to portfolio holdings disclosure that were not part of the Budget announcement (see ASFA Action issue 793 for background).
The YFYS Bill leaves much of the detail of the reforms to be set out in the Regulations.
The draft Regulations to be released this morning:
- outline the methodology for the annual performance test and re-opening test, as well as requirements for notifications to members
- prescribe the definition of a ‘stapled fund’, including tie-breaker rules for determining which fund is to be an employee’s stapled fund where they have multiple existing funds
- specify the formulas as a basis for ranking products on the YourSuper comparison tool
- set out the manner in which the portfolio holdings disclosures are organised
- prescribe the information that must be included with the notice of an Annual Members Meeting
- further strengthen the prohibition on funds offering inducements to employers.
If you have any feedback you would like ASFA to consider in relation to the draft regulations, please forward it to Fiona Galbraith by close of business Friday 14 May.
As indicated in ASFA Action issue 800, the Senate Standing Committee on Economics is due to report on the YFYS Bill tomorrow, 29 April.
ASFA REGULATORY WATCHLIST
ASFA’s Regulatory Watchlist (ARW) tracks developments in Legislation, inquiries, consultations
and other regulatory announcements relevant to superannuation.