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APRA releases proposed eligible rollover fund authorisation requirements

Thursday 28 June 2012

 

The Australian Prudential Regulation Authority (APRA) today released for consultation a discussion paper on proposed arrangements for the authorisation of eligible rollover funds (ERF). Accompanying the discussion paper is a draft authorisation application form together with instructions.

ERFs are designed as a temporary repository for the superannuation of members whose details are lost or who, because of their circumstances, cannot remain as a member of their former fund. There are currently 16 ERFs operating in Australia, with $5.3 billion in total assets under management.

The Superannuation Legislation Amendment (Further MySuper and Transparency Measures) Bill 2012 sets out provisions under which a registrable superannuation entity (RSE) licensee intending to operate an ERF from 1 January 2014 must seek authorisation from APRA.

Because obligations on the trustees of an ERF are closely aligned with those in relation to MySuper products, the draft ERF authorisation application draws heavily on the MySuper authorisation form released for consultation on 3 May 2012.

A number of elements in the draft ERF authorisation application form require the submission of documents that will be required under the prudential standards for superannuation released for consultation on 27 April 2012.

The consultation period for the proposed ERF authorisation requirements will close on Friday 27 July 2012.

The ERF consultation package can be found on the APRA website.

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, private health insurers, friendly societies, and most members of the superannuation industry. APRA currently supervises institutions holding $6 trillion in assets for Australian depositors, policyholders and superannuation fund members.