The Australian Prudential Regulation Authority (APRA) today released for consultation a discussion paper on proposed arrangements for the authorisation of MySuper products.
Accompanying the discussion paper is a draft authorisation application form together with instructions, as well as draft Prudential Standard SPS 410 MySuper Transition (SPS 410) which sets out requirements for trustees moving member balances into a MySuper product.
On 3 November 2011, the Federal Government introduced the Superannuation Legislation Amendment (MySuper Core Provisions) Bill 2011 into Parliament under which a registrable superannuation entity (RSE) licensee intending to offer a MySuper product must seek authorisation from APRA.
The MySuper authorisation package released today builds on APRA’s release on 27 April 2012 of draft prudential standards for superannuation. A number of elements in the draft authorisation application form request the submission of documents that will be required under the prudential standards.
APRA Deputy Chairman Ross Jones said the proposed authorisation requirements have been carefully aligned with the legislative requirements.
‘We encourage RSE licensees considering offering a MySuper product to use the draft application form and instructions in discussions with their Board on their plans, and to open discussions with APRA supervisors on the issue as soon as possible.’
The authorisation process for RSE licensees wishing to offer MySuper products will commence from 1 January 2013. Once authorised, RSE licensees can offer these products from 1 July 2013 onwards.
Draft SPS 410 outlines requirements for all RSE licensees during the transition period from 1 July 2013 to 1 July 2017, by which date all accrued default amounts must be in a MySuper product except in limited circumstances.
The consultation package can be found on the APRA website at: www.apra.gov.au/Super/Pages/Superannuation-reforms-2011-2013.aspx
The Australian Prudential Regulation Authority (APRA) is the prudential regulator of the financial services industry. It oversees banks, credit unions, building societies, general insurance and reinsurance companies, life insurance, friendly societies, and most members of the superannuation industry. APRA is funded largely by the industries that it supervises. It was established on 1 July 1998. APRA currently supervises institutions holding $4 trillion in assets for almost 23 million Australian depositors, policyholders and superannuation fund members.
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