A major regulator has called on superannuation trustees to provide “helpful and balanced” communications to members regarding the Protecting Your Super reforms, ahead of the package taking effect on 1 July.
The Australian Securities and Investments Commission (ASIC) told superannuation industry associates that any information provided to members needed to be balanced and factual rather than misleading, warning them that it would work closely with the Australian Prudential Regulation Authority (APRA) and Australian Taxation Office (ATO) to ensure the reforms were implemented properly.
“ASIC expects superannuation trustees to implement the changes in a timely manner and communicate responsibly – their communications need to help their members,” ASIC Commissioner, Danielle Press, said.
“It is not appropriate for trustees to encourage all members to maintain insurance – many members with inactive accounts will be better off allowing the insurance to lapse. Similarly, trustees should not be urging all members with low-balance accounts to keep their account within the fund as this may not be in the best interests of members.
“How a trustee communicates with their members about the PYSP changes will give us an indication of the trustee’s commitment to members’ best interests.”
The suite of changes would include much-debated reforms to make insurance opt-in on inactive accounts, impose fee caps on low-balance accounts, and remove exit fees for moving money from super accounts.
Australia’s second-largest super fund has confirmed it is expanding its presence in the UK following significant investment in the region.
A member of the super fund has approached ASIC to investigate potentially misleading or deceptive representations by UniSuper regarding the holdings of its sustainable portfolios.
The median growth fund delivered 1.9 per cent in March, adding to the “stunning” rally that has seen super funds gain 11 per cent since November.
Vanguard has affirmed its support for the current super performance test, emphasising the importance of keeping the process straightforward.
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