The Australian Government has released the final report of the Cooper Review into the governance, efficiency, structure and operation of Australia’s Superannuation System.
The review was commissioned in May 2009 to provide recommendations on how to make superannuation simpler, safer and more efficient.
Key points that are likely to be of interest to actuaries include:
Commissions based on insurance in Super Commissions will be banned on all insurance products in super.
There will be a ban on self insurance other than for defined benefit funds.
There are new capital requirements for super funds.
APRA is being given increased powers.
There are minimal changes to SMSFs.
A Code of Trustee Governance is proposed as nearly all the issues looked at in the Review link back to trustee governance in some way or other.
Standard product and investment reporting and detailed financial and operational info on websites.
MySuper should be a whole of life product and include a retirement phase.
Risk Management on Liquidity is being increased.
There are several recommendations for Defined Benefit plans.
The full review can be downloaded here.