Exposure draft legislation to refine the Corporations Act 2001 provisions that establish the legislative frameworks for choice product dashboards and portfolio holdings disclosure have been released for comment.
The existing choice product dashboard and portfolio holdings disclosure requirements were introduced in 2012 but the supporting regulation has not yet been made. ASIC Class Order [CO 14/443] delays the commencement of the requirements until 1 July 2016.
The refinements in the exposure draft legislation limit choice product dashboard to a superannuation fund’s top ten (by value) investment options and the disclosure of a superannuation fund’s portfolio holdings to assets held directly and by associated entities.
These refinements provide a balance between improving member outcomes and minimising compliance costs for the superannuation industry.
To enable consideration to be given to the practical application of the new choice product dashboard and portfolio holdings disclosure regimes, exposure draft regulation has also been released for comment.
The exposure draft legislation and regulation take into account feedback received in response to the Government’s November 2013 discussion paper “ Better regulation and governance, enhanced transparency and improved competition in superannuation” and the outcomes of consumer testing.
Consumer testing has indicated that the introduction of a comparison measure (to a benchmark) on the product dashboard would be welcomed by consumers. A consultation paper has been released for comment to investigate proposed models of comparison.
The Government is seeking to introduce legislation in early 2016 with regulations being made after the legislation receives Royal Assent.