Strengthening superannuation member outcomes is high on APRA’s agenda this year.
The regulator has released a major package of consultation materials outlining the prudential framework changes it believes will enhance the assessment of outcomes for fund members, as well as strategic and business planning and the oversight of fund expenditure. This Super Update gives an overview of the proposed changes.
Some proposals will impose a more formal structure around processes that trustees of many well-run funds would already have implemented. Others may require more detailed analysis than in the past. There are a few areas where clarification is required – such as the application of some of the proposals to defined benefit funds.
Also in this issue, we look at new PDS design and distribution rules. Legislation currently before parliament will require PDS issuers to consider their target market when designing and distributing products. The rules will not apply to MySuper PDSs.
Our news in brief covers ASIC’s review of fee and cost disclosure, and Treasury’s review of the early release rules on hardship and compassionate grounds. We also discuss the expansion of whistleblowing protections currently before parliament and the Insurance in Superannuation voluntary Code of Practice that has recently been released.