APRA Informs RSE Licensees About Reforms to Address Account Erosion
APRA published a letter informing the registrable superannuation entity (RSE) licensees about the change resulting from the recent passage of the Treasury Laws Amendment (Protecting Your Superannuation Package) Act 2019 (PYSP). PSYP will require all registrable superannuation entity licensees to implement a number of reforms to address account erosion due to excessive fees or unnecessary insurance. In this context, APRA also published a set of frequently asked questions (FAQs) addressed to the registrable superannuation entity licensees. The legislation to implement the PYSP reforms becomes effective from July 01, 2019.
The letter states that the government indicated to APRA that it will pursue amendments to the Superannuation Industry (Supervision) Act 1993 (SIS Act) to ensure that the government’s policy intent, which underpinned the PSYP legislative reforms, is achieved in the two areas that have been raised by industry. APRA understands that the government will seek to amend the SIS Act to provide that:
- Legislative requirements allow for the aggregation of a members’ interests in one or more products held within a superannuation account
- 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.
Related Link: Letter and FAQs
Effective Date: July 01, 2019
Keywords: Asia Pacific, Insurance, SIS Act, FAQ, Superannuation, PSYP, Pension Funds, APRA
Next Article
EBA Single Rulebook Q&A: First Update for July 2019Related Articles
|
News
US Agencies Consult on Capital Treatment of Land Development LoansUS Agencies (FDIC, FED, and OCC) issued a proposed rule on the treatment of loans that finance the development of land for purposes of the one- to four-family residential properties exclusion in the definition of high volatility commercial real estate (HVCRE) exposure in the regulatory capital rule.
July 12, 2019
WebPage
Regulatory News
|
|
News
EBA Single Rulebook Q&A: Second Update for July 2019Under the Single Rulebook question and answer (Q&A) updates for this week, EBA published answers to five questions related to supervisory reporting.
July 12, 2019
WebPage
Regulatory News
|
|
News
ESMA Updates Manual for European Single Electronic Format in EUESMA updated the reporting manual for European Single Electronic Format (ESEF).
July 12, 2019
WebPage
Regulatory News
|
|
News
FED Updates Supplemental Instructions for Reporting Form FR Y-9CFED updated the supplemental instructions for FR Y-9C reporting.
July 12, 2019
WebPage
Regulatory News
|
|
News
EBA Publishes Report on Monitoring Implementation of LCR in EUEBA published its first report on the monitoring of the implementation of liquidity coverage ratio (LCR) in EU.
July 12, 2019
WebPage
Regulatory News
|
|
News
EIOPA Consults on Reporting and Disclosures Under Solvency II ReviewEIOPA launched a consultation package on supervisory reporting and public disclosure in the context of its work linked with the 2020 Solvency II review.
July 12, 2019
WebPage
Regulatory News
|
|
News
APRA Applies Additional Capital Requirements to Three Australian BanksAPRA is applying additional capital requirements to three major banks in Australia to reflect higher operational risk identified in their risk governance self-assessments.
July 11, 2019
WebPage
Regulatory News
|
|
News
IMF Report on 2019 Article IV Consultation on Euro Area PoliciesIMF published its staff report in context of the 2019 Article IV consultation on euro area policies with member countries.
July 11, 2019
WebPage
Regulatory News
|
|
News
FSB to Survey Practices on Cyber Incident Response and RecoveryFSB launched a survey on the industry practices on cyber incident response and recovery.
July 11, 2019
WebPage
Regulatory News
|
|
News
ECB Appoints New Members of Supervisory BoardThe Governing Council of ECB appointed Edouard Fernandez-Bollo, Kerstin af Jochnick, and Elizabeth McCaul as representatives to the Supervisory Board of ECB Banking Supervision, for a five-year non-renewable term.
July 11, 2019
WebPage
Regulatory News
|
