Australian Guardians is has conducted Australia’s first Preliminary Superannuation Industry Disclosure Compliance Test to determine which Trustees comply with some of the disclosure obligations they are required to observe as part of their Trustee licence conditions.
The Preliminary Test involves disclosure obligations to persons who are not yet Members or Beneficiaries of the Fund, but who may be considering joining that fund or the Employer who sponsors the fund.
Australian Guardians is issuing a compliance certificate to those Trustees who comply with the Superannuation Regulations and the condition imposed on their Trustee licence. Complying Trustees are given are “star” rating out of five based on documents provided and other criteria such as timeliness and supporting documentation. Those Trustees who ignore their legal obligations are being placed on a “Red Flag” list.
There have been a considerable number of Trustees (approximately 30%) who failed the Preliminary Compliance test and who have been placed on a “Red Flag” list. This should be a matter of concern for any Members of Superannuation Funds administered by these Trustees.
What might these Trustees be attempting to hide?
Australian Guardians will be conducting a more thorough compliance test, where Members of Funds request disclosure of prescribed Fund Documents. In this case not only is it a condition of the Trustees’ RSE Licence issued by the Prudential Regulator – APRA, it is also a criminal offence if Responsible Officers of the Trustee refuse to provide prescribed Fund Documents to Members or Beneficiaries of the Fund.
A Report on Compliance will be provided to the Minister Responsible for Superannuation, the Hon Bill Shorten MP as well as a list of the “Red Flag” non-complying Trustees.
Full results will be published by Australian Guardians to Members later this year.
If you would like to know if your superannuation Trustee is a “Red Flag” Trustee then you should join Australian Guardians today.
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