The Superannuation Legislation Amendment (Trustee Obligations and Prudential Standards) Bill 2012 has passed through the House of Representatives, introducing measures recommended by the Cooper review into the governance, efficiency, structure and operation of Australia's superannuation system.

 

The Minister for Financial Services and Superannuation Bill Shorten said the Bill helps to close a regulatory gap by giving APRA standards-making power in superannuation.

 

"I flagged these reforms as early as December 2010. Today, this Government passed legislation through the lower house that gives the regulator and members new powers to go after rogue superfund directors,"  he said.

 

The Bill:

  • requires a trustee to put the interests of members of funds first at all times;
  • clearly identifies the duties that apply to directors of superannuation funds, including acting honestly and in the best interests of members; and
  • includes a power for APRA to make prudential standards for superannuation.

 

The Superannuation Legislation Amendment (Stronger Super) Bill 2012 and Superannuation Supervisory Levy Imposition Amendment Bill 2012 have been referred to the Parliamentary Joint Committee on Corporations and Financial Services

 

The Superannuation Legislation Amendment (Stronger Super) Bill 2012:

  • 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 on a look-through basis;
  • requires the disclosure and publication of key information in relation to superannuation funds;
  • allows only MySuper funds to be eligible as default funds in modern awards and enterprise agreements;
  • allows exceptions for members of defined benefit funds;
  • requires trustees to transfer certain existing balances of members to MySuper; and
  • provides rules in relation to ERFs.

 

The closing date for submissions has not yet been set.

 

More information is here