Challenges ahead to finalise fund approaches to member outcomes

Super Update

May 15, 2019
| Australia

Two bills were passed by parliament just before the federal election was called, resulting in a range of significant measures impacting funds and trustees.

In this Super Update, we look at the Improving Accountability No.1 bill , that includes new outcomes assessment covenants, a considerably expanded directions power for APRA, an amended form of the portfolio holdings disclosure measure, a new requirement for trustees to hold annual member meetings and new powers for APRA to collect information on expenses relating to the management and operation of funds.

There are some details, particularly around the outcomes assessment, that at the time of preparing this update had not yet been released – even in draft. Critically, while a draft update to prudential standard SPS 515 has been released, in our view the integration of the new assessment with trustees' existing requirements with regard to strategic objectives and planning remains unclear.

The upshot is finalising trustee approaches to member outcomes requirements will be challenging until the uncertainties are clarified.

Also in this issue we look at recent APRA letters to trustees and various Treasury and APRA consultations, as well as the latest APRA superannuation statistical publications and our guide to key changes.