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Preliminaries, Index and Abbreviations

Date



Superannuation Working Group logo

Report

of the

Superannuation Working Group

on

Options for Improving

the Safety of Superannuation

28 March 2002

© Commonwealth of Australia 2002

ISBN 0 642 741 743

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Table of contents

Abbreviations vii

Summary of recommendations 1

1 Introduction 9

2 Universal licensing regime 15

3 Risk management plans 29

4 Prudential standards-making power 33

5 Longer term options - separation of prudential and retirement income provisions 39

6 Prudential standards 43

6.1 Capital adequacy 43

6.2 Investment rules 51

6.3 Outsourcing 56

6.4 Governance and operational risks 60

7 Annual meetings 63

8 Public disclosure of annual returns 67

9 Member approval for giving benefits to related parties 71

10 Financial assistance to failed superannuation funds 75

11 Other issues 79

11.1 Education of trustees and members 79

11.2 Contributions 79

Appendix 1: SWG Consultations 81

List of submissions received 81

List of organisations or individuals represented at SWG consultation meetings 84

Appendix 2: Other developments in the regulation of superannuation 89

Appendix 3: Examples of recent issues for superannuation funds 93

Abbreviations

ADI Authorised Deposit-taking Institution

AFSL Australian Financial Services Licence

AGM Annual general meeting

ALRC Australian Law Reform Commission

APRA Australian Prudential Regulation Authority

ASFA Association of Superannuation Funds of Australia

ASIC Australian Securities & Investments Commission

ATO Australian Taxation Office

Corporations Act Corporations Act 2001

Data Act Financial Sector (Collection of Data) Act 2001

EPSSS Exempt Public Sector Superannuation Scheme

FSI Financial System Inquiry

FSRA Financial Services Reform Act 2001

GIRA General Insurance Reform Act 2001

Insurance Act Insurance Act 1973

MIA Managed Investments Act 1998

NTA Net tangible assets

OECD Organisation for Economic Cooperation and Development

PDS Product Disclosure Statement

SIS Act Superannuation Industry (Supervision) Act 1993

SMSF Self managed superannuation fund

SWG Superannuation Working Group