13-328MR ASIC issues further super reforms guidance
Friday 6 December 2013
ASIC has issued further guidance to assist industry with superannuation reforms, as well as a consultation paper about keeping superannuation websites up to date.
The guidance relates to the new product dashboard requirements for MySuper products, and the new fees and costs disclosure requirements for product disclosure statements (PDSs) and periodic statements.
From 31 December 2013, trustees will be required to publish and keep up to date, a product dashboard for their new MySuper products. MySuper products are the new default products in superannuation, replacing over time existing default funds. The product dashboards will enable consumers to compare their super with other funds and products.
Information Sheet 170 MySuper product dashboard requirements for superannuation trustees (INFO 170) explains what information must be provided for each of the following measures:
the return target
the returns for previous financial years
a comparison between the return target and returns for previous financial years
the level of investment risk, and
a statement of fees and other costs.
INFO 170 also contains an example of what the product dashboard may look like, which incorporates some of the feedback from the independent consumer testing conducted by Latitude Insights.
The results of the testing have been released as ASIC Report 378 Consumer testing of the MySuper product dashboard (REP 378).
Recently the Australian Government released a Discussion Paper 2013 Better regulation and governance, enhanced transparency and improved competition in superannuation which looks at, among other things, the choice product dashboard.
ASIC Commissioner Greg Tanzer said: ‘We hope that the dashboard example provided by ASIC will help trustees see the potential of the product dashboard and its benefits to consumers.’
It is an example only to help illustrate the potential of the dashboard: not all of the content requirements are specifically required by the legislation, or by APRA’s Reporting Standard SRS 700.0 Product Dashboard.
In 2014, ASIC plans to publish information from the product dashboards on its MoneySmart website, based on data provided by APRA.
Fees and costs disclosure
The Superannuation Legislation (MySuper Measures) Regulations 2013 changed the existing superannuation and managed investment fee disclosure requirements under the Corporations Regulations 2001. ASIC has issued FAQ guidance to help super trustees with respect to these changes.
Importantly, ASIC guidance emphasises that there should not be double counting of fees.
ASIC has also released Consultation Paper 219 Keeping superannuation websites up to date (CP 219), which considers what ‘up to date at all times’ means in the context of s29QB of the Superannuation Industry (Supervision) Act 1993 (SIS Act). These requirements relate to executive officer remuneration disclosure and other systemic transparency measures.
ASIC proposes giving trustees a ‘safe harbour’, so that they are taken to comply with the updating obligation in s29QB if they update the fund website within a specified time. That time is generally 14 days.
ASIC is seeking feedback by 3 February 2014.
In relation to s29QB, ASIC has also recently amended its Class Order [CO 13/830] to extend the timeframe for compliance with the requirements of this section until 1 July 2014.
Further, ASIC has issued FAQs in relation to the s29QB disclosure requirements, including providing guidance on the definition of executive officers. This information is available on our superannuation page.
ASIC’s facilitative approach to compliance
ASIC wants to remind the industry that we are taking a facilitative compliance approach for super reforms until 1 July 2014. We will adopt a measured approach where inadvertent breaches arise or systems changes are underway, provided industry participants are making reasonable efforts to comply.