Find information re intra-fund advice and disclosure requirements
ASIC has released four information sheets covering aspects of the Stronger Super reforms, including providing intra-fund advice and disclosure requirements associated with the reforms.
‘These information sheets will help trustees understand their obligations as they outline ASIC’s expectations in relation to key aspects of the reforms,’ ASIC Commissioner Greg Tanzer said.
Information Sheet 168 Giving and collectively charging for intra-fund advice (INFO 168) explains:
- what intra-fund advice is
- the restrictions on collectively charging for advice
- MySuper and conflicted remuneration
- how the Future of Financial Advice (FOFA) reforms and other advice laws apply to intra-fund, and
- what records must be kept.
Previous intra-fund advice requirements in Class Order [CO 09/210] Intra-fund superannuation advice will cease on 1 July 2013.
Information Sheet 167 Disclosure requirements for superannuation trustee: s29QC (INFO 167) covers the new section 29QC of the Superannuation Industry (Supervision) Act 1993 (SIS Act). That is, a super trustee must use the same calculation when providing information to a person or on a website as it does when giving the same or equivalent information to the Australian Prudential Regulation Authority under a reporting standard.
‘While this reform is a significant change for superannuation trustees, it is intended to improve the comparability of superannuation products through consistency in calculations,’ Mr Tanzer said.
INFO 167 sets out:
- the disclosure requirements
- what the changes mean for trustees
- what happens if the data collection and disclosure requirements conflict, and
- what happens if s29QC is breached
Information Sheet 169 Notifying members about superannuation transfers: Accrued default amounts (MySuper transition) (INFO 169) addresses requirements under section 29SAA(3) of the SIS Act and regulations where a super trustee must provide a notice to a fund member with an ‘accrued default amount’ regarding an intended transfer or attribution to a MySuper product in the same fund, or to another fund within specific timeframes.
INFO 169 covers:
- the notification requirements
- exemptions from having to provide a notice under regulation 9.46
- timing of the notifications, and
- how the notification should be made
Information Sheet 90 Notifying members about superannuation transfers without consent (INFO 90), which explains the requirements for disclosure to members where there is a ‘significant event’ or ‘material change’ regarding their super fund, has also been updated. However, this does not reflect a substantive shift in policy by ASIC.
This information sheet has been updated in part to reflect the Stronger Super changes but also to recognise the fact that the Stronger Super reforms may result in an increase in successor fund transfers more generally and updating this guidance is timely.
ASIC and APRA are working together to minimise any possible conflict between the disclosure and data collection requirements.
Stronger Super implementation
ASIC’s stronger super page has further information.
Industry questions on Stronger Super can be sent to StrongerSuperReforms@asic.gov.au.
ASIC will be updating the FAQs page as further questions come in.
The Superannuation Legislation Amendments (Further Mysuper and Transparency Measures) Act 2012 (Tranche 3) modifies the SIS Act and the Corporations Act 2001.
Section 20B of the SIS Act defines an ‘accrued default amount’ for a member of a regulated superannuation fund as the amount of a member’s superannuation interests (or part of their interests):
- where the member has not given the trustee of the fund any direction about the investment option to be applied, or
- that is invested in the ‘default’ investment option under the current governing rules of the fund (i.e. the investment option that would apply for a new member if no direction were given)
INFO 167 addresses requirements in addition to Corporations Act requirements regarding significant event notifications, and the disclosure of transactions in periodic statements.
Any decision that fundamentally affects a member’s investment, including a decision to transfer a member’s benefit without their consent, is a change or event that must be disclosed. INFO 90 provides examples of situations when notice is required, outlines when a member must be notified and how, and what information should be given.