AUSTRALIA - The Gillard government will amend superannuation legislation to tighten the list of funds that are exempt from policing by the Australian Prudential Regulation Authority (APRA) it announced this week.
The proposed Superannuation Industry (Supervision) Amendment Regulations 2011 would amend the list of exempt public sector superannuation schemes (EPSSS) to remove schemes that have converted to APRA-regulation and to update legislative references to those schemes and provide that a public sector superannuation scheme ceases to be an EPSSS at the time it becomes registered with APRA.
Under Australian law, public sector superannuation schemes - those funds that are run under the authority of the commonwealth or a government of a state, territory or local governing body - are exempt from APRA regulation because they are subject to the regulation under the legislation that established them in the first place. Public funds can choose to be regulated under APRA, meaning they cease to be EPSSS.
The proposed legislation would also insert a note explaining that that information regarding investment strategies is usually provided to members in a Product Disclosure Statement (PDS) but now, this information may be incorporated in a PDS by reference. The legislation would also permit the confiscation of superannuation funded directly with the proceeds of crime.
The draft legislation is now out for public comment until 14 June.
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