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
Previous Article
IOSCO Updates Peer Reviews on Regulation of Securitizations and MMFsRelated Articles
EU Agencies Update LCR Rule and Macro-Prudential Policy Recommendation
The European Commission (EC) published the Delegated Regulation 2022/786 with regard to the liquidity coverage requirements for credit institutions under the Capital Requirements Regulation (CRR).
EBA Publishes Regulatory Standards to Identify Shadow Banking Entities
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying the criteria to identify shadow banking entities for the purposes of reporting large exposures.
OSFI Discusses Benchmark Rate Transition, Sets Out Work Priorities
The Office of the Superintendent of Financial Institutions (OSFI) published the strategic plan for 2022-2025 and the departmental plan for 2022-23.
EBA Proposes Standards to Support Secondary NPL Markets
The European Banking Authority (EBA) is consulting, until August 31, 2022, on the draft implementing technical standards specifying requirements for the information that sellers of non-performing loans (NPLs) shall provide to prospective buyers.
EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution
The European Council and the Parliament reached an agreement on the revised Directive on security of network and information systems (NIS2 Directive).
EBA Issues Standards for Crowdfunding Service Providers Under ECSPR
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying information that crowdfunding service providers shall provide to investors on the calculation of credit scores and prices of crowdfunding offers.
EU to Amend Credit Risk Adjustment Rules; ESAs Submit Queries on SFDR
The European Council published a draft Commission Delegated Regulation to amend the regulatory technical standards on specification of the calculation of specific and general credit risk adjustments.
EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution
The European Securities and Markets Authority (ESMA) published a paper that examines the systemic risk posed by increasing use of cloud services, along with the potential policy options to mitigate this risk.
MAS Amends Notice 635 and Issues Second Proposal on Green Taxonomy
The Monetary Authority of Singapore (MAS) published amendments to Notice 635, which sets out requirements that a bank in Singapore has to comply with when granting an unsecured non-card credit facility to individuals.
EC Consults on PSD2 and Open Finance; EU Reaches Agreement on DORA
The European Commission (EC) published a public consultation on the review of revised payment services directive (PSD2) and open finance.