ASIC has released an information sheet (INFO 89) for employers setting out its views how they can communicate to their employees about superannuation choices without breaking the law. It highlights what they should avoid saying or doing including being careful not to provide financial product advice or engage in distributing superannuation products on behalf of others.
It is also relevant for superannuation trustees, payroll providers, superannuation clearing houses and others who engage with employers or employees. This could include union officials who wish to give information about choice of superannuation fund to union members.
The Information Sheet reflects law changes affecting the distribution of superannuation products include product design and distribution obligations, restrictions on the unsolicited selling of financial products (hawking), and the ‘stapling’ measure, which is a part of the Your Future Your Super (YFYS) package.
ASIC has also updated Information Sheet 241: Prohibition on influencing employer’s superannuation fund choice (INFO 241), which provides guidance to superannuation trustees about the prohibition on using inducements to influence employers in their choice of a default fund or to encourage employees to choose or retain membership of a fund.
The changes to INFO 241 reflect the removal of an exemption to section 68A by the Superannuation Industry (Supervision) Amendment (Your Future, Your Super—Improving Accountability and Member Outcomes) Regulations 2021). The exemption allowed a trustee to supply or offer goods or services to an employer on the basis that the supply or offer was available to all the employer’s employees.
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Author: David Jacobson
Principal, Bright Corporate Law
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About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.
