The Australian Prudential Regulation Authority (APRA) today released for consultation draft guidance on successor fund transfers and wind-ups for APRA-regulated superannuation trustees (RSE licensees). A successor fund transfer is a transfer of the members in a superannuation fund to a different fund (successor fund).
Draft Prudential Practice Guide SPG 227 Successor Fund Transfers and Wind-ups (draft SPG 227) replaces previous APRA guidance on successor fund transfers and wind-ups and is intended to assist RSE licensees in carrying out a successor fund transfer when they have decided that to do so is in the best interests of their members.
Draft SPG 227 also includes new guidance in the key areas of ‘equivalent rights’ in a successor fund transfer, transfers between MySuper products and considerations for the operational risk financial requirement in undertaking a successor fund transfer.
APRA Deputy Chairman Helen Rowell said ‘APRA recognises that the introduction of MySuper products in 2013-2014, as well as ongoing consolidation and other recent developments in the superannuation industry, have introduced additional complexities for RSE licensees in undertaking a successor fund transfer. APRA has therefore revised its guidance to assist RSE licensees where a successor fund transfer is being considered.’
Draft SPG 227 and a letter to RSE licensees are available on APRA's website.