Superannuation Industry Stewardship Group key messages 9 July 2019

Welcome and introduction

David Knox (Senior Partner, Mercer) opened the meeting with an acknowledgment of country, welcomed members, noted apologies and passed on James O’Halloran’s apologies.

Member update Protecting Your Super (PYS) – the Link Group

Graham Sammells (Link Group) led a discussion about the Link Group’s experience of the Protecting Your Super measure on the Link Group organisation and their clients.

Outcome: Members were informed about priorities of other parts of the industry.

Next steps: Member updates will continue at future meetings.

Protecting Your Super

David Knox (Senior Partner, Mercer) led a discussion about lessons from the PYS announcements, policy and legislative process including implementation timeframes, support tools and communication.

Members discussed the impacts that they had experience and sought clarification where required.

Outcome: Members had an opportunity to provide their perspectives and gain an understanding of other member’s perspectives.

Next steps: Regulators will continue to work closely with industry to understand their concerns.

Superannuation industry overview

The group reviewed the activities occurring across the superannuation industry into the future by way of reference to the Superannuation Strategic Map. This standing item outlines the key government agency programs of work, regulatory and agency reforms across the next 18 months.

Topics discussed included:

• Un-enacted measures and proposed legislation, including Superannuation Guarantee Amnesty. Treasury noted the scope of work is before the new minister.
• Outcomes from the Royal Commission report and Productivity Commission report, including Comprehensive Income Products for Retirement (CIPRS) and protecting (fund) members interests.
• Retirement Income Streams Review.
• APRA’s new directions making powers, ongoing consultation on PYS implementation, Prudential Standard CPS 234 Information Security standards, proposed business performance review standards, the total and permanent disability claims handling process and Regulatory Guide RG 97.
• Financial Adviser Remediation (fees for no service) consultation.

Outcome: Members were informed on the progress and discussed specific events of interest.

Next steps: The strategic map will continue to be updated and time set aside at future meetings to discuss.

Financial Adviser Standards and Ethics Authority Ltd (FASEA)

Stephen Glenfield shared the objectives of FASEA along with the activities being undertaken in 2019 and how these are impacting the superannuation industry.

The presentation discussed the timelines for the implementation of the Professional Standards of Financial Advisers. These included:

• minimum qualifications
• an exam
• continuing professional development
• work based training for new advisers
• code of ethics compliance.

Outcome: Members were given an improved understanding of the future direction of FASEA.

Next steps: Members to be kept informed of the changes that impact the superannuation industry.

Member update

Jane Macnamara from the Financial Services Council (FSC) led a discussion about modernising products over time and the impact on customers with older products.

Michelle Levy, for the Law Council of Australia, discussed their structure and focus points for Treasury submissions, which is on law clarification.

Outcome: Members were informed about priorities of other parts of the industry.

Next steps: Member updates will continue at future meetings.

ATO update

Graham Whyte (Assistant Commissioner, Australian Taxation Office) updated the group on:

• ATO online visibility and it usage by tax agents
• Single Touch Payroll implementation
• Protecting Your Super amendments included in final legislation package
• SMSF issues including
  • improved visibility of disqualified trustees
  • Approved Auditor actions
  • improving the Approved Auditor experience
  • Annual Return lodgements
   
• superannuation guarantee enforcement tools
• First Home Super Saver scheme

Outcome: Members were informed on the progress of ATO activities.

Next steps: Members to be kept informed of the changes that impact the superannuation industry.

Wrap up and close

David Knox (Senior Partner, Mercer) thanked the members for their input.

Attendees

Apologies