The draft Regulation gives effect to changes arising from legislation implementing the MySuper and governance reforms.
Specifically, the Regulation:
- makes changes to improve transparency including by:
- prescribing the way in which information in the product dashboard is to be worked out and presented;
- prescribing how fees for superannuation products are to be disclosed in product disclosure statements;
- prescribing the portfolio holdings information that will be publicly available on an registrable superannuation entity (RSE) licensee's website;
- specifying the types of documents and information that trustees will need to publish on their websites (including information on trustee and executive officer remuneration);
- requiring RSE licensees to include the latest product dashboard in the member's periodic statement; and
- requiring trustees to inform members that they can request written reasons for decisions made (and in cases where no decision has been made) in relation to non-death benefit complaints.
- requires dual regulated entities to inform the Australian Securities and Investments Commission (ASIC) of events that may lead to material adverse changes in their financial position;
- prescribes factors that may be used for a lifecycle investment strategy;
- permits the governing rules of a superannuation fund to limit contributions that are transfers from a foreign superannuation fund;
- clarifies the circumstances in which a person is a defined benefit member to ensure they are excluded from certain MySuper requirements, and gives priority to accumulation interests (of both members and other beneficiaries) over defined benefit interests in the event of a winding-up of a technically insolvent defined benefit fund;
- makes various technical and consequential amendments such as: requiring RSE licensees to provide the Australian Prudential Regulation Authority (APRA) with early disclosure of successor fund transfers and other information; applying relevant provisions to persons involved in the management of an RSE licensee that is also a First Home Saver Accounts provider; and to update references in the regulations; and
- repeals and/or amends existing regulations relating to subject matter that will be dealt with in APRA prudential standards and to update the definition of an eligible rollover fund.