The Federal Government proposal to tighten up legislation to prevent criminals recovering the proceeds of crime through superannuation funds has raised concerns from one industry association, which says not enough detail has been released.
In submissions to the Government, both the Association of Superannuation Funds of Australia (ASFA) and the Australian Institute of Superannuation Trustees (AIST) supported the proposal to allow trustees to recognise a forfeiture order by the courts.
But in its submission, ASFA outlined a number of issues with the proposal, including the short time frame of changing the system by 1 July 2011, as well as the lack of detail surrounding where the requests would come from, how the payments should be treated and what disclosure is required.
ASFA also asked whether there would be a standard time for payment, a standard form for use, and whether the payment would be treated as a crystallisation event.
Despite this, other proposals by the Government to tidy up the funds allowed on the exempt public sector superannuation scheme (EPSSS) list and the proposal for short-form product disclosure statement (PDS) received support from both associations.
