Trio levy increased to spread burden more evenly
The Federal Government has taken the advice of industry associations on the levy to compensate victims of the Trio collapse, lifting the maximum amount from $500,000 to $750,000 for funds with over $5.57 billion in assets to ensure fairer distribution.
The Minister for Financial Services and Superannuation, Bill Shorten, also announced the applicable rate would fall from 0.01977 to 0.01347 – meaning smaller funds would pay less.
Both the Association of Superannuation Funds of Australia (ASFA) and the Australian Institute of Superannuation Trustees (AIST) had written submissions to the Government expressing their concerns that the original levy would be unfair for smaller funds, whose members would pay a larger portion of the bill.
Shorten said the impact of the new levy on a member of an average sized fund with an account of $33,000 is expected to be under $4.50.
Another issue raised by ASFA was whether funds could have longer than the original 28 days to pay the levy. Shorten said the Australian Prudential and Regulatory Authority (APRA) has indicated that it will now allow a 60-day payment term.
Shorten thanked all stakeholders who contributed to the development of the levy regulations.
Recommended for you
A financial advice firm has been penalised $11 million in the Federal Court for providing ‘cookie cutter advice’ to its clients and breaching conflicted remuneration rules.
Insignia Financial has experienced total quarterly net outflows of $1.8 billion as a result of client rebalancing, while its multi-asset flows halved from the prior quarter.
Prime Financial is looking to shed its “sleeping giant” reputation with larger M&A transactions going forward, having agreed to acquire research firm Lincoln Indicators.
An affiliate of Pinnacle Investment Management has expanded its reach with a London office as the fund manager seeks to grow its overseas distribution into the UK and Europe.
