AUSTRALIA - The Australian Securities and Investments Commission (ASIC), in conjunction with the Australian Prudential Regulation Authority (APRA), has issued a new Class Order that facilitates "intra-fund" superannuation member benefit transfers.
An intra-fund transfer is a transfer of fund members and their benefits between superannuation products within a regulated superannuation fund.
The Class Order will permit members of funds to be transferred between products within a fund without the members’ consent, as part of the rationalisation of fund products, the authorities said in a joint statement.
“The class order relief provides assistance to superannuation fund trustees when making arrangements to consolidate or rationalise ‘legacy’ products or systems where these are part of a wider, single regulated superannuation fund,” said John Price, ASIC director of legal and technical operations, financial services regulation.
Ramani Venkatramani, APRA general manager, specialised institutions division, added: “Addressing legacy products and systems issues is a prudential priority in controlling operational risk.”
The relief applies only where adequate disclosure is made to members prior to the intra-fund transfer, the authorities said. It incorporates the ‘equivalent rights’ test, which applies under the SIS Regulations in relation to the transfer of members and their benefits between separate super funds under a ‘successor fund’ mechanism implemented without the consent of the members.
“To safeguard superannuation fund members’ interests, it is envisaged that the ‘equivalent rights’ requirement in relation to intra-fund transfers will also be subject to APRA supervision under the required approved trustee or RSE licence conditions,” Venkatramani said.
This week's top stories included Cardano announcing plans to acquire Now Pensions from a Dutch pension fund later this year.
Royal Bank of Scotland (RBS) faces a £102m impact on liabilities as a result of equalising guaranteed minimum pensions (GMPs), according to its annual results.
Malcolm Mclean says getting the channels of communication right and engaging more openly is a good starting point