Timeframes for the MySuper authorisation process, compliance
with APRA prudential standards and implementation of SuperStream
changes were too tight from the outset.
A timetable1 which summarises the legislative and
regulatory process for super trustees is attached.
What is clear from the timetable is that waiting for more
certainty in regulation is not an option for trustees intending to
apply for a MySuper authorisation.
There is too little time. Trustees and fund
professionals should now be engaging with experts, such as our team
at Henry Davis York, to identify, prioritise and implement
The gap analysis needed in relation to business strategy and
governance requirements will likely highlight the need for trustee
boards of directors to obtain strategic legal advice in relation
the annual determination of sufficiency of scale in respect of
the MySuper product, and any proposal to merge with another
New governance and directors' duties, including investment
and insurance governance.
Risk management, including the trustee board's annual risk
management declaration, and the operational risk financial
The strategy for transition of accrued default amounts to a
The strategic issues are complex, and in many instances may
require a different approach to strategic decision making by
trustee boards. For an in-depth review, see our related piece
Scale, strategy and super fund boards.
Super fund compliance and operational professionals will, we
expect, focus on documents to be reviewed and revised and legal
advice to be provided in relation to:
The MySuper authorisation process.
Compliance with required MySuper product features, including
amendments to trust deeds, technical fee rules including fee
allocation between members and cost recovery rules, and insurance
Compliance with product and investment disclosure
Compliance with required governance policies.
Compliance with required risk management policies.
The review of outsourcing contracts.
The implementation of transition of accrued default amounts to
a MySuper product, account consolidation and implementation of
SuperStream data standards.
Don't get left behind - there are a range
of additional regulatory requirements that you need to be across
In the years following the global financial crisis of 2008 many Australian investors lost their life savings as financial products failed and the Australian Stock Exchange shed over 3,000 points.
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