ASIC today released Consultation Paper 227 Disclosure and reporting requirements for superannuation trustees (CP 227) aimed at improving the comparability of information about superannuation products for consumers.
ASIC is seeking feedback on options proposed for dealing with the uncertainty about how to achieve consistency between the disclosure requirements administered by ASIC and the data that is required to be reported under APRA's reporting standards. These consistency requirements were introduced under reforms aimed at improving the comparability of superannuation products by requiring consistency in how information is calculated.
CP 227 raises issues around the treatment of investment objectives and return targets and asset allocation information.
Section 29QC of the Superannuation Industry (Supervision) Act 1993 requires disclosure to align with APRA data reporting requirements in some circumstances. ASIC has deferred the operation of s29QC until 1 July 2015 and is using the deferral period to address this uncertainty.
ASIC Commissioner Greg Tanzer said, 'The provision of inconsistent information can inhibit informed decision-making. Given the compulsory nature of superannuation, it is appropriate that trustees do everything they reasonably can to ensure there is adequate transparency and to support improved comparability. ASIC thinks that fund performance is a key area that would benefit from consistency of approach'.
ASIC previously issued Information Sheet 167 Disclosure requirements for superannuation trustees: s29QC (INFO 167) to give guidance about the implications of the new consistency requirements. In March 2014, we issued a joint letter with APRA to RSE licensees, also outlining our views on s29QC.
ASIC welcomes feedback on the proposals outlined in CP 227 from all interested parties.
Submissions close on 13 March 2015.
Other relief available
ASIC has extended interim Class Order relief in two areas of superannuation:
- Extension of the interim relief in Class Order [CO 13/1420] exempting a trustee of a regulated superannuation fund from having to provide a periodic statement to its members that includes the separate reporting of Low Income Superannuation Contribution (LISC) under regulation 7.9.20(2A). The class order will now apply to reporting periods that end on or before 30 June 2015.
The relief is still conditional on the trustee meeting one of two conditions. For full detail of the exemption and conditions attaching to it see [CO 13/1420].
- Extension of the interim relief provided in the Second Exemption of Class Order [CO 13/1534] exempting a trustee of a regulated superannuation fund from having to include the latest superannuation product dashboard in a periodic statement and enabling the dashboard to be included in the statement via a hyperlink.
The interim relief now applies to periodic statements issued for reporting periods ending before 1 July 2015.
For further information see [CO 13/1534].