
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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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