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ASIC explains reporting
The Australian Securities and Investments Commission (ASIC) has released information to assist superannuation trustees in complying with reporting obligations regarding material changes and significant events.
ASIC executive director of compliance Jennifer O’Donnell said the release of the new information was important in circumstances where it was imperative that members were promptly advised of changes that could affect their ability to make informed decisions.
Contained in QFS 163, “I am a superannuation trustee. Do I need to notify members about member transfers without consent?”, the new information comes after ASIC’s review of disclosure practises following the introduction of choice legislation in July last year.
‘Material change’ and ‘significant event’ refer to any decision that fundamentally affects a member’s investment, including transferring a member’s benefits without consent.
“Delayed or obscure notices significantly affect a member’s ability to make an informed decision about whether to exercise their right to exit the fund,” O’Donnell said. “It is imperative members are advised of these decisions clearly, early and in a manner which will come to their attention.”
O’Donnell also warned against relying on amended Product Disclosure Statements (PDS) to communicate potential changes. “The ongoing obligation to disclose material changes and significant events is an additional requirement to the PDS disclosure obligations,” she said.
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