ASIC has written to superannuation trustees to remind them about the disclosure requirements associated with undertaking mergers and consolidation activity.
The merger of super funds and the transfer of members and their benefits brings with it certain disclosure requirements for trustees.
ASIC maintains a focus on disclosure issues with super trustees and investors to help ensure members are adequately informed about the changes and what these changes may mean for them.
Trustees are required to:
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inform members about the merger, as it is a significant event; and
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provide Product Disclosure Statements (PDSs) to transferring members that explain the product the member will hold following the merger.
Prospective members should also be catered for with PDSs provided for the current fund explaining the merger.
ASIC is aware that merger and consolidation activity is occurring in the superannuation industry and wants to ensure trustees are aware of their disclosure requirements to help ensure they will meet them.