POWERED BY MOMENTUM MEDIA
ASFA questions super rollover time-frames
Superannuation funds should not be compelled to process rollovers within three working days but should instead act as quickly as practicable within 30 days, according to the Association of Superannuation Funds of Australia (ASFA).
Responding to the Australian Prudential Regulation Authority's (APRA's) draft prudential standards for superannuation funds, ASFA said the three working day rule for rollovers focused on receiving information "and not on the accuracy of the information, or any concerns around the identity of the person making the request".
ASFA said this approach assumed there would be no risk of fraud.
"That is, the rules operate on the presumption that, having passed the Australian Taxation Office's (ATO's) identification validation process, the assumption is that the person who is making the request is the person who owns the benefit," the submission said.
ASFA was also concerned that the three day rule "primarily targets members in existing default options and, going forward, in MySuper products, because other regulations treated investments in a choice option as an "illiquid investment and subject to an ‘as soon as is practicable but in no more than 30 days' rollover requirement".
The submission said the three working day rule for rollovers did not recognise existing and long-standing arrangements for forward unit pricing and would drive the industry towards the costly introduction of daily unit pricing processes — further entrenching short-termism in investment decisions.
ASFA also said it would limit the scope of investment arrangements that trustees could consider for MySuper products, to the detriment of members invested through those products.
Recommended for you
The pace of economic growth in Australia is expected to “grind higher over coming quarters” off the back of lower inflation, falling interest rates, and a robust labour market, Deloitte has said.
The superannuation sector has welcomed confirmation that a controversial US tax provision will be removed.
A new analysis from environmental finance group Market Forces has reportedly discovered that AustralianSuper is on the b...
Treasurer Jim Chalmers has held talks with US Treasury Secretary Scott Bessent, intensifying efforts to resolve concerns over section 899 of the proposed “Big Beautiful Bill” in the United States.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
92.15 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
53.24 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
43.15 3 y p.a(%)
4
DomaCom Shoreline North Coogee
36.26 3 y p.a(%)
5
GAM LSA Private Shares AU I
35.87 3 y p.a(%)
