Issue 713, 28 June 2019
In this issue:
- Changes to Protecting Your Super Legislation
Changes to Protecting Your Super Legislation
The Government has indicated to the Australian Prudential Regulation Authority (APRA) that it intends to amend the Protecting Your Super (PYS) legislation in response to matters raised by the superannuation industry.
APRA has today stated the Government will seek to amend the Superannuation Industry (Supervision) Act 1993 (SIS Act) to provide that:
- the legislative requirements allow for the aggregation of a members’ interests in one or more products held within a superannuation account; and
- the rights of members under fixed term insurance cover are not affected and insurance cover is not inappropriately removed. This may affect conventional products where the switching off of cover would have a demonstrable adverse financial effect on the member, such as products that are already fully paid up or currently non-premium paying, whole of life and endowment products, and certain legacy products.
APRA has indicated that although the proposed amendments will not be made before the legislation takes effect on 1 July 2019, APRA supports trustees proceeding on the basis that the amendments will become law in due course.
APRA has updated its frequently asked questions on the implementation of the PYS legislation.
ASFA is pleased with this outcome following extensive consultation with Treasury and constructive discussions with Government.
ASFA REGULATORY WATCHLIST
ASFA’s Regulatory Watchlist (ARW) tracks developments in Legislation, inquiries, consultations
and other regulatory announcements relevant to superannuation.