The Government has released draft regulations on the final stage of MySuper reforms, calling on MySuper product providers to disclose risks, fees and performance in an easy-to-read format.
The drafts are now open for consultation, and Minister for Financial Services and Superannuation, Bill Shorten says that “for the first time, Australian consumers will be able to easily compare super products based on easy to understand information”.
The standard format, known as a product dashboard, will provide a single page, consumer friendly summary of key performance indicators for each MySuper product. These indicators will include an annual dollar disclosure of fees, the target investment return and a clear statement of investment risk.
The regulation advises how information in the product dashboard is to be worked out and presented, how fees for superannuation products are to be disclosed in PDS, and what portfolio holdings information that will be publicly available on a RSE licensee's website.
RSE licensees will be required to include the latest product dashboard in the member's periodic statement, and trustees need to inform members that they can request written reasons for decisions made (and in cases where no decision has been made) in relation to non-death benefit complaints.
The regulation also:
Prescribes factors that may be used for a lifecycle investment strategy
Permits the governing rules of a superannuation fund to limit contributions that are transfers from a foreign superannuation fund
Clarifies the circumstances in which a person is a defined benefit member to ensure they are excluded from certain MySuper requirements, and gives priority to accumulation interests (of both members and other beneficiaries) over defined benefit interests in the event of a winding-up of a technically insolvent defined benefit fund;
Cancels and/or amends existing regulations relating to subject matter that will be dealt with in APRA prudential standards and to update the definition of an eligible rollover fund
“This is a key aspect of the Government’s MySuper reforms, and I urge members of the public, consumer groups and the superannuation industry to get involved in providing feedback,” said Shorten.