MySuper implementation timetable seriously questioned
The Association of Superannuation Funds of Australia (ASFA) has reinforced its calls for an extension to the timetable for the implementation of MySuper.
In a submission filed with the Australian Prudential Regulation Authority (APRA), ASFA has raised serious issues about the implementation timetable and its impact on individual superannuation funds.
As well, the ASFA submission questions whether, given the proposed implementation timetable, APRA can appropriately request specific information from superannuation funds.
It said that while the regulator had indicated it would like to review draft MySuper authorisations now, it would be difficult for many members to finalise their MySuper authorisations by 3 March 2013, update the necessary policies required for the authorisation and then obtain board sign-off for the updated or new policies, as well as arrange the MySuper authorisation.
"Where a trustee is unable to meet the 3 March 2013 date and indicates to APRA that it will be applying for a MySuper authorisation, ASFA recommends that APRA provide guidance to the industry as to how APRA will approach authorisations that are lodged post this date," the submission said.
ASFA also pointed to APRA releasing a reporting standard to be finalised in June next year, and requiring licensees to report the number of accounts affected and other information.
"Without the final reporting standard being released by 1 January, 2014, ASFA questions whether APRA is able to request this information," the submission said.
It said licensees would also have difficulty providing such information within 25 business days of the quarter beginning on 1 January, next year, without having time to update systems to provide such information.
The ASFA submission recommends that the employer contribution start date for MySuper be moved from October 2013 to 1 July 2014 - which it says will allow more time for trustees, employers and regulators to prepare for MySuper and for APRA to authorise MySuper products.
Recommended for you
Unveiling its performance for the calendar year 2024, AMP has noted a “careful” investment in bitcoin futures proved beneficial for its superannuation members.
SuperRatings has shared the median estimated return for balanced superannuation funds for the calendar year 2024, finding the year achieved “strong and consistent positive” returns.
The second tranche of DBFO reforms has received strong support from superannuation funds and insurers, with a new class of advisers aimed to support Australians with their retirement planning.
The financial services technology firm has officially launched its digital advice and education solution for superannuation funds and other industry players.
