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  • SISG key messages 23 November 2016

    The Superannuation Industry Stewardship Group (SISG) met in Melbourne on 23 November 2016.

    Budget New Measures implementation

    A discussion on the implementation of the government’s budget measures was held with consideration given to the following tabled documents:

    Strategic Map

    • Superannuation new measures implementation pathway
    • Superannuation new measures walkthrough pack

    There was general agreement from members that the design and levelling of information displayed on the strategic map was useful and requested that it is updated and tabled at future stewardship group meetings.

    Members expressed their appreciation of the information presented to the group and a positive response to the consultation activities driven by Treasury and the ATO.

    There was a discussion on the high level implementation pathway which highlighted what the implementation landscape looks like and the deliverables required from the ATO and industry to comply with the new law. The pathway provided a broader sense of the interaction points of the new measures and timeframes.

    There was a desire from members to issue the new measures implementation pathway to a wider audience.

    Members were walked through a more detailed discussion on each of the measures and the impacts on different client groups. The new measures walkthrough pack provided members with a high level view of the program of work and an illustrative overview highlighting the different interconnections across industry recognising the sequencing and flow on impacts.

    It was noted as part of the ATO’s support package to complement the superannuation reform measures, an overview of the proposed public advice and guidance has been released.

    Single Touch Payroll superannuation

    Tom Garcia from AIST introduced the item outlining the purpose of the discussion, to understand the policy intent and design supporting superannuation in single touch payroll and the scope of changes expected.

    There was interest from members on how the design would work.

    Michael Karavas from the ATO took members through a detailed discussion on the design considerations and processes, including reporting and availability of information via myGov accounts.

    It was noted that the ATO is committed to collaborating with ASIC from a disclosure perspective.

    Members expressed interest in keeping the Single Touch Payroll conversation as standing agenda item for future stewardship group meetings.

    Industry feedback on insurance

    Glen McCrea from ASFA and Blake Briggs from FSC presented the developments of the governance body and technical working group which has been established to address issues with insurance in the superannuation industry.

    The working group will drive the work to redesign insurance in the super industry with an immediate focus on options to best manage the balance between insurance policy coverage and cost to superannuation consumers. The working group has cross industry representation to ensure the perspectives of different groups are considered.

    There was a discussion about the need for a good narrative around insurance in super and development of evidence based proposals.

    It was noted that it is a positive step for industry working closely together to resolve key issues with superannuation insurance.

    Fees and costs

    Ged Fitzpatrick from ASIC led a discussion on the guidance to the legislative requirements for calculating and disclosing fees and costs in product disclosure statements as set out in Regulatory Guide 97. The guidance had been developed with extensive consultation with industry and followed a report by ASIC that identified inaccuracies and inconsistencies with reporting of fees and costs.

    It was noted the new regime was scheduled to commence from 1 February 2017. There had been some concerns expressed by industry in meeting the deadline and ASIC is considering a relief application to extend the implementation period.

    ASIC acknowledged industry’s approach to develop additional industry-focussed guidance material to enhance consistency across the industry and looked forward to seeing a consolidated industry position.

    External review of dispute resolution

    Michelle Dowdell from Treasury provided an update on the review of external dispute resolution and complaints schemes, which is examining the role, powers, governance and accountability of the existing schemes and consider if they effectively meet the needs of the financial system.

    The interim report is scheduled for release at the end of November 2016 [has now been released] with the final report expected by March 2017 to be provided to the government.

    Consultation with stakeholders will continue after the draft report is released.

    An out of session SISG will be arranged in the new year to discuss the draft report.

    Next Meeting

    Tuesday 28 February 2017 in Melbourne.

    Action items

    Action item 20161123-1

    Members were invited to provide feedback on the tabled documents to superannuation consultation by Friday 2 December. The ATO will issue an updated version before the end of the year.

    Action item 20161123-2

    STP Design Working Group membership to be provided to SISG members

    Action item 20161123-3

    Secretariat to arrange a phone hook-up with SISG members to discuss the draft external dispute resolution report early in the new year. [planned for 16th January]

    Attendees

    Australian Taxation Office

    James O’Halloran, Deputy Commissioner, Superannuation (Chair)

    Jason Lucchese, Assistant Commissioner, Superannuation

    Sarah Kimmorley, Senior Director, Superannuation

    Tammie Turner, Superannuation (Secretariat)

    Guests

    Neil Olesen, Second Commissioner ATO

    Michael Karavas, Single Touch Payroll ATO

    Ian Colhoun, Single Touch Payroll ATO

    Treasury

    Michelle Dowdell

    Australian Prudential Regulation Authority (APRA)

    Helen Rowell

    Stephen Glenfield

    Australian Securities & Investment Commission (ASIC)

    Ged Fitzpatrick

    Australian Chamber of Commerce and Industry (ACCI)

    Dick Grozier

    Australian Institute of Superannuation Trustees (AIST)

    Tom Garcia

    Association of Super Funds Australia (ASFA)

    Glen McCrea

    CPA Australia

    Paul Drum

    Chartered Accountants Australia and New Zealand

    Tony Negline

    Financial Services Council (FSC)

    Blake Briggs

    Industry Super Australia (ISA)

    Michael Fisher

    Law Council of Australia

    Heather Gray

    Mercer

    David Knox

    SMSF Association

    Andrea Slattery

    Apologies

    Australian Bankers' Association (ABA)

    Diane Tate

    Financial Planning Association of Australia (FPA)

    Dante De Gori

    Industry Super Australia (ISA)

    Robbie Campo

    Treasury

    Jenny Wilkinson

    Ian Beckett

      Last modified: 20 Jan 2017QC 50920