Treasury has released an Exposure Draft of the Superannuation Legislation Amendment (Further MySuper and Transparency Measures) Bill 2012 for consultation.
The Bill:
• bans entry fees and sets criteria for the charging of other fees in superannuation, including rules for the charging of financial advice;
• requires all superannuation funds to provide life and TPD insurance to members (excluding defined benefit members) on an opt-out basis;
• enables APRA to collect information;
• allows only MySuper funds to be eligible as default funds in modern awards and enterprise agreements;
• allows exceptions for members of defined benefit funds.
The draft legislation requires superannuation funds to publish on their websites:
- details of director and executive pay;
- details of what assets the fund has invested in; and
- an up-to-date ‘product dashboard’, setting out information on target investment returns, past performance against targets, investment risk, liquidity and fees, in relation to each product offered by the fund.
The draft legislation also provides the remaining legislative elements relating to MySuper, including provisions relating to intra-fund advice and the transition to MySuper.
This Bill is the third tranche of legislation implementing the
Government’s MySuper and governance reforms as part of Stronger
Super. The first tranche of legislation was introduced to the Parliament on 3 November 2011 as the Superannuation Legislation Amendment
(MySuper Core Provisions) Bill 2011 (the MySuper Core Provisions Bill).
The second tranche of legislation was introduced to the Parliament on 16 February 2012 as the Superannuation Legislation Amendment (Trustee Obligations and Prudential Standards) Bill 2012 (the Trustee Obligations and Prudential Standards Bill).
