ASIC Class Order [CO 14/1217]

Overview

ASIC Class Order [CO 14/1217] was enacted in 2014 under subsection 1020F(1) of the Corporations Act 2001 by the Australian Securities and Investments Commission (ASIC). This class order was introduced to address the implementation timeline for the inclusion of superannuation product dashboards in periodic statements for superannuation fund members. The Superannuation Legislation Amendment (MySuper Measures) Regulation 2013 required that product dashboards be included in periodic statements provided to members if the trustee was required to make a dashboard publicly available under section 1017BA of the Act. ASIC Class Order [CO 13/1534] had previously provided interim relief from this requirement, applying to periodic statements for reporting periods ending before 1 January 2015, provided the trustee included a website address for the latest product dashboard in the periodic statement or accompanying document. This class order extends that interim relief by an additional six months, to periodic statements with reporting periods ending before 1 July 2015, to allow further consideration of the obligations related to product dashboards. ASIC did not undertake formal consultation on this extension, as it was deemed a technical modification, but consulted with relevant industry bodies who had no objection to the extension.

Scope and Application

ASIC Class Order [CO 14/1217] applies to trustees of superannuation funds, specifically those required to provide periodic statements to members of the fund. The class order extends the interim relief from the requirement to include superannuation product dashboards in these statements. This relief is extended for periodic statements with reporting periods ending before 1 July 2015, continuing the exemption initially set out in ASIC Class Order [CO 13/1534] which applied to statements with reporting periods ending before 1 January 2015. Instead of including the product dashboard, trustees must provide a website address for the latest product dashboard either in, or in a document accompanying, the periodic statement. This applies to all members, including those exiting the fund. The class order does not extend beyond the specified date and does not create any new exclusions, exemptions, or thresholds beyond what is already outlined in the Corporations Regulations 2001 and the preceding class order. The class order is made under the Corporations Act 2001, and its application is limited to trustees of superannuation funds within the Commonwealth of Australia. The order does not create new obligations or alter existing ones outside the specified relief.

Key Provisions

The main operative sections of ASIC Class Order [CO 14/1217] extend the interim relief from the requirement to include superannuation product dashboards in periodic statements provided to members of a superannuation fund. Under the Superannuation Legislation Amendment (MySuper Measures) Regulation 2013, trustees are required to include product dashboards in periodic statements if they are required to make such dashboards publicly available under section 1017BA of the Corporations Act 2001 (section 7.9.20(1)(o) of the Corporations Regulations 2001). However, ASIC Class Order [CO 13/1534] provides interim relief from this requirement if the trustee includes a website address for the latest product dashboard either in, or accompanying, the periodic statement. This interim relief was initially set to apply only to periodic statements with reporting periods ending before 1 January 2015. ASIC Class Order [CO 14/1217] extends this interim relief for an additional six months, so that it applies to periodic statements with reporting periods ending before 1 July 2015. The obligations imposed by the Act on trustees of superannuation funds include the requirement to provide periodic statements to members, generally every twelve months, to help them understand their investments. These statements must include a product dashboard if the trustee is required to make such a dashboard publicly available under section 1017BA of the Act. However, pursuant to the interim relief provided by ASIC Class Order [CO 13/1534] and extended by ASIC Class Order [CO 14/1217], trustees are required only to include a website address for the latest product dashboard either in, or accompanying, the periodic statement. This applies to periodic statements for reporting periods ending before 1 July 2015. There are no specific offences, penalties, or civil/criminal consequences outlined in the explanatory statement for breaches of the provisions contained in ASIC Class Order [CO 14/1217]. The explanatory statement does indicate, however, that the purpose of the class order is to provide further consideration as to how best to clarify obligations relating to product dashboards. As such, the primary consequence of non-compliance would be the need for trustees to provide the required product dashboard in periodic statements, which could result in additional administrative burdens and potential dissatisfaction among fund members. However, the explanatory statement does not provide specific details on the potential consequences for non-compliance beyond this.