The Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC) have issued a letter to registrable superannuation entity (RSE) licensees in relation to Member Outcomes (MO) obligations and Design and Distribution Obligations (DDO), to assist in better understanding the interaction of their requirements.
For the MO obligations, administered by APRA and which commenced on 1 January 2020, the first Business Performance Reviews (BPR) were due by 31 December 2020 and the first Outcomes Assessments are expected to be completed early 2021.
For the DDOs, administered by ASIC, the commencement date for the reforms is 5 October 2021 but significant preparation is needed by RSE licensees ahead of this date.
Both obligations affect super funds’ products and operations.
Superannuation products which include insurance will be specifically affected.
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Author: David Jacobson
Principal, Bright Corporate Law
About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.