ASIC CLASS ORDER [CO 13/830]
EXPLANATORY STATEMENT
Prepared by the Australian Securities and Investments Commission
Superannuation Industry (Supervision) Act 1993
The Australian Securities and Investments Commission (ASIC) makes Class Order [CO 13/830] under paragraph 328(1)(a) of the Superannuation Industry (Supervision) Act 1993 (the Act).
Paragraph 328(1)(a) provides that ASIC may, in writing, exempt a particular person or a class of persons, from compliance with any or all of the modifiable provisions, which includes a provision of Part 2B of the Act.
- Background
On 29 May 2009, the Government commissioned the Super System Review (the Review), chaired by Jeremy Cooper, to make recommendations to improve the superannuation system. The Review’s final report was handed to the Government on 30 June 2010.
The Government’s response to the Review was a package of reform recommendations entitled Stronger Super. These reforms include:
a) The creation of a new, simple, low-cost default superannuation product called ‘MySuper'; and
b) strengthening the governance, integrity and regulatory settings of the superannuation system, including enhancements to the disclosure and reporting requirements for superannuation (systemic transparency measures).
Some of the key disclosure requirements of the MySuper reforms, as set out in regulations 2.37 and 2.38 of the Superannuation Industry (Supervision) Regulations 1993 (Regulations) and section 29QB of the Act, have a commencement date of 1 July 2013. Under these requirements, an RSE licensee of a registrable superannuation entity will be required to make publicly available and to keep up to date, at all times on the registrable superannuation entity's website:
a) details of remuneration of executive officers and individual trustees (regulation 2.37); and
b) various items of information relating to the relevant superannuation fund, such as trust deeds and summaries of significant event notices given to members of the fund (regulation 2.38).
Due to the inherent complexity of this area of the Stronger Super reforms and the need for the Government to consider industry feedback on a wide range of issues, the final form of regulations 2.37 and 2.38 is only likely to be resolved a short time before the intended commencement date of 1 July 2013. In the circumstances, RSE licensees of a registrable superannuation entity may not have a reasonable opportunity to understand and prepare for the requirements before the provisions take effect.
2. Purpose of the class order
The purpose of the class order is to provide RSE licensees of a registrable superannuation entity with additional time to make the necessary arrangements to comply with subsection 29QB(1) of the Act and regulations 2.37 and 2.38 of the Regulations.
3. Operation of the class order
The class order has the effect of exempting RSE licensees of a registrable superannuation entity until 31 October 2013, from the requirement in subsection 29QB(1) of the Act to make publicly available, and to keep up to date, at all times on the registrable superannuation entity's website:
a) details of remuneration of executive officers and individual trustees (regulation 2.37); and
b) various items of information relating to the relevant superannuation fund, such as trust deeds and summaries of significant event notices given to members of the fund (regulation 2.38).
4. Consultation
ASIC has consulted with the Department of Treasury. The Treasury was provided with feedback from industry in relation to the obligation under subsection 29QB(1) of the Act and regulations 2.37 and 2.38 of the Regulations, which has been taken into account when developing this class order.
The Office of Best Practice Regulation confirmed that a Regulation Impact Statement was not necessary.
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
ASIC Class Order [CO 13/830]
This class order is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of the class order
The class order relates to regulations 2.37 and 2.38 of the Superannuation Industry (Supervision) Regulations 1994, which were made under section 29QB of the Corporations Act 2001. Regulations 2.37 and 2.38 have a commencement date of 1 July 2013. These provisions require an RSE licensee of a registrable superannuation entity to make publicly available and to keep up to date, at all times on the registrable superannuation entity's website:
a) details of remuneration of executive officers and individual trustees (regulation 2.37); and
b) various items of information relating to the relevant superannuation fund, such as trust deeds and summaries of significant event notices given to members of the fund (regulation 2.38).
These changes are part of the Government's Stronger Super reforms. However, given the detail in these regulations is only likely to be resolved a short time before the intended commencement date of 1 July 2013, the class order defers the commencement date from 1 July 2013 to 31 October 2013 in order to provide RSE licensees with additional time to comply with the new requirements.
Human rights implications
This class order does not engage any of the applicable rights or freedoms.
Conclusion
This class order is compatible with human rights as it does not raise any human rights issues.