Following public consultation, ASIC has issued two legislative instruments that relate to superannuation. The instruments will continue the substantive effect of relief that ASIC had granted by Class Order. This relief was due to expire ('sunset') under the Legislative Instruments Act 2003 (Legislative Instruments Act) later in 2016.
The new legislative instruments are:
- ASIC Corporations (Superannuation: Accrued Default Amount and Intra-fund Transfers) Instrument 2016/64. This instrument provides relief from the application form and cooling-off requirements to a superannuation trustee for all transfers of an accrued default amount to a MySuper product and intra-fund transfers (that are not movements of an accrued default amount). The terms of the previous relief were set out in Class Order [CO 04/1574] Application form and cooling-off relief for certain transfers of members between financial products and interests within a superannuation fund; and
- ASIC Corporations (Superannuation: Investment Strategies) Instrument 2016/65. This instrument continues, with minor and technical changes, the relief under Class Order [CO 06/636] Superannuation: Delivery of product disclosure for investment strategies.
In issuing the new instruments, ASIC made non-significant changes to the terms of the preceding relief. ASIC Corporations (Superannuation: Accrued Default Amount and Intra-fund Transfers) Instrument 2016/64 extends the scope of the previous relief to cover all transfers of an accrued default amount to a MySuper product, regardless of whether the MySuper product is in a different fund. The existing relief for intra-fund transfers (that are not movements of an accrued default amount) will continue with non-substantive changes to the terms of the relief.
ASIC Corporations (Superannuation: Investment Strategies) Instrument 2016/65 continues the relief under [CO 06/636] with minor and technical changes that will accommodate, where applicable, the operation of the shorter product disclosure statement provisions.
Consultation process
On 2 June 2015, ASIC issued Consultation Paper 232 - Remaking ASIC class orders on superannuation: [CO 04/1574] and [CO 06/636] (CP 232). CP 232 sought feedback on ASIC's proposals to continue the relief for superannuation funds with non-significant changes. Comments closed on 7 August 2015. (refer: 15-138MR)
The report on submissions is attached. This report highlights the key issues from the submissions and ASIC's responses. ASIC received four submissions, which raised a range of issues. None of the submissions objected to ASIC's proposals to continue the relief under the class orders.
Background
The instruments provide relief in relation to superannuation funds. Previously, ASIC provided a trustee of a superannuation fund with relief from the application form and cooling-off requirements under the Corporations Act 2001 (Corporations Act) in relation to a transfer within the same superannuation fund: see [CO 04/1574]. [CO 06/636] is relevant to a superannuation fund through which a member may access other financial products. [CO 06/636] changes the Product Disclosure Statement provisions under Part 7.9 of the Corporations Act to provide the trustee and issuers of financial products with flexibility in giving product disclosure statements to members.
Under the Legislative Instruments Act, all class orders are repealed automatically or ‘sunset’ after a specified period of time (mostly 10 years) unless we take action to exempt or preserve them. This ensures that legislative instruments like class orders are kept up to date and only remain in force while they are fit for purpose and relevant.
All government organisations are responsible for considering whether the legislative instruments they have made that are due to sunset will be relevant after their sunset date.
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ASIC Corporations (Superannuation: Investment Strategies) Instrument 2016/65