APRA has issued a letter to all Registrable Superannuation Entities outlining its proposed revisions to new prudential standard SPS 515 (Strategic Planning and Member Outcomes) which are required as a result of the changes made in the Treasury Laws Amendment (Improving Accountability and Member Outcomes in Superannuation Measures No. 1) Act 2019. APRA does not intend to vary the commencement date of SPS 515 which is 1 January 2020. Background.
APRA has prepared a draft version of SPS 515 which includes the following proposed changes:
- Documenting the “methodology applied in undertaking the legislated outcomes assessment, including how the RSE licensee has determined ‘comparable choice products’”; and
- Considering separately “the impact of scale and the operating costs of its business operations on the financial interests of members that hold the product”.
Protecting Your Super regulations registered
The Treasury Laws Amendment (Protecting Your Superannuation Package) Regulations 2019 have been registered.
The Regulations are effective from 1 July 2019 and deal with:
- Disclosure and notification obligations for inactive member accounts;
- Details in relation to the administration of the low-balance fee cap; and
- Directions to the ATO in relation to consolidating inactive amounts for a member who has more than one active account.