The Australian Prudential Regulation Authority (APRA) today announced that existing superannuation trustees have until 17 February to apply for a Registrable Superannuation Entity (RSE) licence.
This cut-off date for applications is to provide sufficient time for APRA to complete the licensing process and to register all funds by 30 June 2006 in accordance with the Superannuation Industry (Supervision) Act 1993 (the SIS Act).
APRA has notified trustees on a number of occasions to provide them with sufficient time to either finalise their applications or, for those who do not intend to apply for an RSE licence, to make alternative arrangements prior to 30 June 2006.
"To date, the trustees of all major superannuation entities regulated by APRA that indicated they would apply for an RSE licence have either lodged an application or already received a licence," APRA Deputy Chairman Ross Jones said.
"With all of the major funds now accounted for under the new licensing regime, APRA is continuing to work with those trustees who intend to exit the industry to ensure their members' best interests are protected and their funds are transferred to a licensed trustee."
The purpose of the new licensing regime introduced by Parliament is to enhance the safety of members' funds in the superannuation system by requiring licensees to comply with new standards covering proper governance, managing relationships with third parties, maintaining adequate resources and implementing sound risk management systems.
No applications have been refused at this stage. Of 317 applications received to date, more than 40 per cent were submitted after 1 December 2005. The processing of applications takes considerable time due to the necessary checks and validations. So far, 80 RSE licences have been issued.
Some 405 trustees that indicated their intention to exit the industry have done so and a further 450 are expected to do so by the end of the transition period.
APRA can make arrangements, if necessary, for an acting trustee to be appointed in cases where trustees have not applied for a licence by 17 February 2006 or transferred their funds to a licensed trustee by 30 June 2006.
Mr Jones said that from 1 July 2006 it will be an offence to act as a trustee of a registrable superannuation entity without an RSE licence or to accept contributions to a fund.
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 approximately $2.2 trillion in assets for 20 million Australian depositors, policyholders and superannuation fund members.
Media and industry inquiries only:
Stuart Snell, Head of Public Affairs
Australian Prudential Regulation Authority
Telephone: 02 9210 3384
Mobile: 0407 250 276
All other inquiries:
APRA Contact Centre
1300 131 060
