14th Feb 2019, 7:58 PM – Senate Treasury Laws Amendment (Improving Accountability and Member Outcomes in Superannuation Measures No. 1) Bill 2017 - Second Reading - Some more definitions

The majority voted in favour of Opposition amendments to a Government amendment, meaning that the Opposition amendment was successful.

Amendment text

AMENDMENTS TO GOVERNMENT AMENDMENTS [SHEET GZ227]

(1) Amendment (2), before item 1, insert:

1A Subsection 10(1) (after the definition of authorised person )

Insert:

benchmark means a benchmark mentioned in, or specified in regulations made for the purposes of, subparagraphs 52(9)(a)(i) and (ii) and paragraph 52(9)(aa).

1AA Subsection 10(1) (after the definition of Commissioner )

Insert:

comparable choice products , in relation to a choice product, means a class of choice product specified in regulations made for the purposes of this definition that the choice product is to be compared with.

(2) Amendment (2), item 6, subparagraph 52(9)(a)(i), omit “set under the prudential standards”, substitute “specified in regulations made for the purposes of this subparagraph”.

(3) Amendment (2), item 6, subparagraph 52(9)(a)(ii), omit the subparagraph, substitute:

(ii) if the product is a choice product—a comparison of the choice product with the comparable choice products in relation to the choice product, based on factors mentioned in subsection (10A), and a comparison of the choice product with any other benchmarks specified in regulations made for the purposes of this subparagraph; and

(4) Amendment (2), item 6, after paragraph 52(9)(a), insert:

(aa) to determine, in writi ng, on an annual basis, whether each trustee of the entity is promoting the financial interests of the beneficiaries of the fund, as assessed against benchmarks specified in regulations made for the purposes of this subparagraph;

(5) Amendment (2), item 6, after subsection 52(10), insert:

(10A) In comparing a choice product with the comparable choice products in relation to the choice product, the trustees must compare each of the following:

(a) the fees and costs that affect the return to the beneficiaries holding the choice products;

(b) the return for the choice products;

(c) the level of investment risk for the choice products;

(d) any other matter specified in the prudential standards.

(6) Amendment (3), after item 6, insert:

6A Subsection 196(3)

Omit “2,000”, substitute “2,400”.

(7) Amendment (12), omit the definition of investment option , substitute:

investment option , for a registrable superannuation entity, means:

(a) an investment pool maintained within the entity; or

(b) a financial product made availableto a member of the entity:

(i) that is a managed investment scheme or other pooled investment; and

(ii) in respect of which section 1012I A applies if there is, or will be, a regulated acquisition of the product (within the meaning of that section).