The Your Future, Your Super Reforms
APRA supports the Government’s YFYS reforms as they are a further step in the superannuation regulatory framework. These developments are critical in light of the increasing size and complexity of the superannuation industry.
Among the key reforms are:
- Super accounts will follow members when they change jobs to reduce the incidence of members having (and paying fees for) multiple, unnecessary accounts (stapling).
- Funds will be subject to an annual performance test by APRA. Funds that fail must notify their members, and if they fail two years running, they are unable to accept new members.
- The best interests duty has been changed to a best financial interests duty, while the onus of proof has been reversed for RSE licensees to justify their expenditure meets this duty, as well as and the sole purpose test.
- The ATO will create a new interactive online YourSuper Comparison Tool aimed at consumers.
The Performance Test and YourSuper Comparison Tool build on recommendations from the Productivity Commission and leverage APRA’s MySuper Product Heatmap, adding clear benchmarks with consequences should they not be met. This will sharpen and strengthen APRA’s ability to enhance member outcomes across the superannuation system.
The best financial interests duty and increasing transparency of trustee expenditure also address recommendations from the Productivity Commission, and sharpen trustees’ current obligations.
The complete Your Future, Your Super Act is available here: https://www.legislation.gov.au/Details/C2021A00046
To support APRA’s administration of these reforms, APRA will provide further industry, and entity-specific communications over the coming months, described in the letter to industry.
APRA will also publish frequently asked questions and hold webinars, to keep the superannuation industry abreast of key areas of interest.