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  • CRT Alert 038/2019

    4 July 2019

    Updated Protecting Your Super guidance

    Earlier today we wrote to trustees advising them of an update to APRA’s Protecting Your Super FAQsExternal Link indicating the government will seek to amend the Superannuation Industry (Supervision) Act 1993 to provide that:

    • the legislative requirements allow for the aggregation of a members’ interests in one or more products held within a superannuation account; and
    • the rights of members under fixed term insurance cover are not affected and insurance cover is not inappropriately removed. This may affect conventional products where the switching off of cover would have a demonstrable adverse financial effect on the member, such as products that are already fully paid up or currently non-premium paying, whole of life and endowment products, and certain legacy products. 

    We’ve updated our Q&A document on Let’s TalkExternal Link to reflect this announcement. Until the law is amended, the approach outlined in the letter to trustees on 9 May remains. That is, we will not apply compliance resources to review whether funds have applied the relevant tests at a product level to identify their inactive low-balance accounts.

    Next steps:

      Last modified: 08 Jul 2019QC 59571