Fund Regulatory Update
/Regulations on political payment disclosures updated
Superannuation funds saw new draft regulations on fund disclosure of spending out for consultation recently, with the new regulations designed to ensure all superannuation entities were uniformly presenting certain political payments.
The goal is to reduce the risks of inaccuracy and inconsistency between funds. Funds must now require super funds to itemise all spending on political donations, while non-political donations can be listed in aggregate, including from unions, which has been criticised by some. Funds can provide more information on spending.
Westpac free from extra liquidity requirement
APRA removed the 10 per cent add-on liquidity of Westpac after a previous breach on liquidity standards. The program imposed on Westpac has been completed and APRA is satisfied with the outcome of an independent review. The capital requirement add-on of $1 billion remains in place.
MySuper performance, five products fail
APRA’s second MySuper performance results are out, with five years of data relating to investment performance, and fees and costs. Five products have failed, four for the second time. The four failed products are now closed to new members, with three offered by providers with plans to leave the industry. Transfers are underway.
First time fail:
Retirement Wrap - Westpac Group Plan MySuper
Second time fail:
Australian Catholic Superannuation and Retirement Fund - LifetimeOne
Energy Industries Superannuation Scheme-Pool A - Balanced (MySuper)
Retirement Wrap - BT Super MySuper
AMG Super - AMG MySuper
