The Minister for Financial Services, Superannuation and Corporate Law today announced that the Government proposes to streamline long term superannuation disclosure requirements. The refinements mean members would receive more useful and accessible information.
The Corporations Amendment Regulations (No. 3) 2009, which took effect from
1 July 2009, required superannuation funds to disclose five and, eventually, ten year returns in periodic statements so that members can better understand their superannuation performance over time.
The refinements announced today would amend the long-term performance disclosure regulations to:
- exclude exit statements;
- allow the industry to use inserts to provide five-year performance information for one more year up until 30 June 2011;
- exempt "traditional" funds (of an insurance nature); and
- allow approved deposit funds and pooled superannuation trusts to provide annual reports on line.
"Long term superannuation disclosure assists members to engage with superannuation as a long term investment. It is important that members are provided this information in a manner that is relevant and easy to understand. Excluding exit statements and allowing the use of inserts for an extra year will allow funds to perfect the IT system build required to provide members with clear and concise performance reporting."
"The exemption of ‘traditional‘ funds is appropriate where they are older style insurance products, that are not usually relevant for long term performance reporting."
"In addition, the members of approved deposit funds and pooled superannuation trusts will be given the same flexibility in receiving annual reports that the members of regulated funds enjoy."
The amendments follow discussions with the superannuation industry. The industry will be consulted during the legislative drafting process.
As required by the Corporations Agreement, the Commonwealth will consult the States and Territories about the proposed amendments to the Corporations Regulations.
The proposed legislative amendments will require the approval of the Governor General in Executive Council. The necessary approvals will be sought as soon as possible.
19 February 2010