The Australian Prudential Regulation Authority (APRA)’s has released an information paper on its approach to administering the annual performance test for superannuation products.
One of the many complications of the performance test was applying it in a situation where there were changes within a product (changes to the structure of a product) or across a product change (where members had been transferred to a new product).
This would be done by:
The performance test was a two-part test that involved:
If the product underperforms the combined test by more than 0.5%, the product would be deemed to have failed the performance test.
If a product failed the performance test in two consecutive years, the registrable superannuation entity (RSE) licensee will be prohibited from accepting new beneficiaries into that product.
Investment performance would be assessed over a seven-year performance timeframe in 2021 and an eight-year timeframe thereafter.
BlackRock boss Larry Fink praised Australia’s superannuation system in his annual chairman’s letter.
The prudential regulator has announced it will publish new expenditure data of superannuation funds, providing details on expenses like advice, director remuneration, and payments to unions.
Affirming the UK’s growing attractiveness as an investment destination, a number of Australia’s largest investors recently joined the UK Foreign Secretary for an exclusive briefing in Canberra to discuss further opportunities for trade and growth.
The specialist superannuation law advisory practice is set to wind up, with managing partner Jonathan Steffanoni planning to bring a new offering to market.
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