ASIC defers superannuation consistency requirements until 2019

ASIC has deferred the ‘superannuation consistency requirements’ until 1 January 2019. The regulator has also delayed a change to how superannuation and retirement calculators account for inflation.

“Section 29QC was introduced as part of the Stronger Super requirements. The section requires that if a trustee provides information to APRA under a reporting standard and the trustee gives the same or equivalent information to another person, or on a website, then the trustee must ensure that this information is calculated in the same way as the information given to APRA,” said ASIC.

ASIC announced that it had further delayed the operation of section 29QC of the Superannuation Industry (Supervision) Act 1993 until 1 January 2019, with the ASIC Superannuation (Amendment) Instrument 2016/1232.

“This is to allow sufficient time for the Choice product dashboard requirements to be settled and implemented.”

“ASIC considers it beneficial to allow these reforms to be finalised before settling the policy position for the application of section 29QC.”

“ASIC intends to issue a further instrument, as well as providing guidance, about the application of s29QC in 2018.”

The superannuation consistency requirements were previously set to apply from 1 February 2017.

Inflation in superannuation and retirement calculators

ASIC has also extended to 1 July 2018 changes in how providers of retirement and superannuation calculators must account for inflation.

“If a generic financial calculator makes an estimate of a future return or payment it must adjust for inflation using an assumed rate of inflation of 2.5% (being the current mid-point of the Reserve Bank of Australia’s target range for inflation over the cycle) from 1 April 2017,” said ASIC.

“As a result of the extension, this requirement will not apply to retirement and superannuation calculators until 1 July 2018.”

“ASIC has deferred the commencement of this requirement for superannuation and retirement calculators because there are a number of current superannuation reforms that may impact on how superannuation calculators should present and calculate estimates in the future.”

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