ASIC working on member reserve rules

Superannuation funds can expect firm guidance from the Australian Securities and Investment Commission (ASIC) about when and in what circumstances they can use the member reserve to pay fines. 

ASIC Commissioner, Danielle Press has told Senate Estimates that the regulator was continuing to work on the issue in circumstances where it represented a complex area of law. 

Answering questions form NSW Liberal Senator and former Financial Services Council (FSC) policy adviser, Andrew Bragg, Press said the regulator was continuing to work on the use of reserves “around what can and can’t be paid out of reserves and how the disclosure should be made”. 

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Senator Bragg referenced issues raised in Senate Estimates last year and, in particular, a fine imposed on Hostplus and the manner in which it was paid. 

Press acknowledged the length of time being taken by ASIC to deal with the issue and, while pointing to the complexity, said that if fines were paid from member reserves she would expect that members would be appropriately notified. 

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