ASIC consults on remaking class order on departed former temporary residents’ superannuation

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ASIC has released a consultation paper about whether it should remake a class order that provides conditional relief to superannuation trustees from obligations in the Corporations Act 2001 (Corporations Act) that require trustee to provide an exit statement and notice to departed former temporary resident members.

The class order is [CO 09/437Departed former temporary residents’ superannuation–Disclosure relief.

[CO 09/437] relieves trustees of regulated superannuation funds from the requirement to notify and give exit statements to departed former temporary residents when their superannuation benefits are paid to the Australian Taxation Office under Part 3A of the Superannuation (Unclaimed Moneys and Lost Members) Act 1999. The relief is conditional upon disclosure of specified information in product disclosure documentation and on the trustee’s website.

ASIC’s preliminary view is that this class order is operating appropriately and effectively, and it continues to form a necessary and useful part of the legislative framework. Therefore, ASIC proposes to remake [CO 09/437]. However, in doing so, ASIC proposes a minor amendment to transfer the obligation for website disclosures from the trustee’s website to the fund website.

Consultation Paper 318: Remaking ASIC class order on departed former temporary residents’ superannuation: [CO 09/437] (CP 318) outlines ASIC’s rationale for proposing to remake [CO 09/437]. The draft ASIC instrument, which reflects amendments proposed in the consultation paper, is available on the ASIC website under CP 318.

ASIC plans to repeal [CO 09/210Intra-fund superannuation advice. [CO 09/210] was made in 2009 and its relief has been redundant since the repeal of section 945A of the Corporations Act.

ASIC welcomes input from the superannuation industry and other interested stakeholders on the consultation paper and the draft instrument. The consultation is open for a period of six weeks, with comments due by 21 August 2019. Further information about the consultation will be available on the ASIC website.

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