Minister for Financial Services and Superannuation Bill Shorten today introduced into Parliament the fourth and final tranche of legislation implementing the MySuper and governance elements of the Government’s Stronger Super reforms.
“The Superannuation Legislation Amendment (Service Providers and Other Governance Measures) Bill 2012 continues the Gillard Government’s commitment to enhancing the governance and integrity of Australia’s superannuation system,” Mr Shorten said.
The Bill implements the Cooper Review recommendation to override any provisions in a fund’s governing rules that stipulate that the trustee must use specified service providers or only invest in or through specified entities.
“This legislation will ensure a trustee is obliged to enter into arrangements which are in the best interests of members,” Mr Shorten said.
A recent report by APRA found that in situations where a trust deed required trustees to use a related insurance provider, this was associated with higher-cost insurance products provided to members, without a commensurate increase in benefits received in the funds.
The Bill responds to concerns that have been raised about the Superannuation Legislation Amendment (Trustee Obligations and Prudential Standards) Act 2012 in relation to director liability.
“These changes have been developed in consultation with industry and will better balance the rights of super fund members and the protection of directors and trustees against frivolous or vexatious litigation,” Mr Shorten said.
The Bill also implements the remaining Stronger Super governance changes including enabling members to obtain information in relation to decisions that affect them, and increasing the time limits for lodging complaints with the Superannuation Complaints Tribunal.
Mr Shorten’s Media Contact: Sam Casey 0421 697 660