The document provides updates on significant reforms in the Australian superannuation sector as of August 2018, highlighting developments from the Royal Commission into misconduct in financial services and the recommendations of various bills aimed at protecting retirement savings. Key topics include the Senate Economics and Legislation Committee's support for the Protecting Your Super bill, which imposes restrictions on fees and insurance for low-balance accounts, and the shelving of the bill aimed at strengthening trustee governance. Additionally, the document discusses the implications of the recently released competition report, updates from the ATO on superannuation, and ongoing consultations on the Consumer Data Right legislation.

1. While all care has been taken in the preparation of this information, QMV Solutions takes no responsibility for any loss or damage
suffered from relying on this information. This information is not intended to be financial, tax or legal advice.
August 2018 | Pensions & Superannuation RegulatoryUpdate
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In Brief
Major Reform Updates
Royal Comission
6-17 August 2018
Round 5 Hearings
The Royal Commission into Misconduct in the Banking, Superannuation and
Financial Services Industry turned its attention to superannuation funds
during August. The main questions raised by Counsel Assisting included:
▪ advertising expenditure and the sole purpose test (SIS s.62);
▪ adequacy of law against offering inducements to employers (SIS s.68A)
▪ whether payments from external responsible entities of managed
investment schemes are appropriate;
▪ appropriateness of selling superannuation in bank branches;
▪ engagement by super. funds with Aboriginal and Torres Strait Islanders;
▪ whether shareholder rights to appoint trustee directors are appropriate;
▪ the relationship between trustees and financial advisers;
▪ managing conflicts of interest (prioritising the interests of members)
▪ whether existing misconduct laws need to be strengthened or existing
laws need to be better enforced; and
▪ what can be done for regulators to act promptly.
The Commission is accepting submissions from the public in response to
policy issues relating to the superannuation industry, with submissions
closing 21 September. The next round of hearings will focus on Insurance
and begins on 10 September 2018.
QMV recommends that RSE licensees consider the potential impact of
the policy questions raised by Counsel Assisting, and engage either
directly or via industry associations to respond to the consultation via
submission.
🔗Link to Details
The Royal Commission into Misconduct in the Banking, Superannuation and
Financial Services Industry focused on the superannuation industry in round 5. Closing
submissions raised a number of important policy issues for submissions from industry and
the public.
We also saw the Protecting Your Super Bill move closer to law, with the Senate
Economics Legislation Committee recommending it be passed, the reforms to trustee
governance has been dropped and Treasury has released exposure draft legislation for
the Consumer Data Right and Open Banking.

2. August 2018 | Pension & Superannuation RegulatoryUpdate
advisory | delivery | professional resources
While all care has been taken in the preparation of this information, QMV Solutions takes no responsibility for any loss or damage
suffered from relying on this information. This information is not intended to be financial, tax or legal advice.
Protecting Your Super
14 August 2018
In the Senate
The Senate Economics & Legislation Committee recommended passing the
Treasury Laws Amendment (Protecting Your Superannuation Package) Bill.
The Bill would implement the Protecting Your Super Package, containing
measures to protect the retirement savings of individuals from erosion. The
major components are:
▪ trustees of superannuation funds are prevented from charging certain
fees and costs exceeding 3% of the balance of a MySuper or choice
product annually where the balance of the account is below $6,000
▪ trustees are prevented from providing opt out insurance to new members
aged under 25 years, members with balances below $6,000 and
members with inactive MySuper or choice accounts, unless a member
has directed otherwise.
▪ measures to increase the rate of consolidation of superannuation
accounts, decrease low-balance account erosion and reduce insurance
premium and fee duplication for many members.
QMV recommends that superannuation trustees assess the impact of
these changes on trustee revenue from member fees and consider any
corresponding adjustments to fees charged by service providers.
Planning should commence for updating systems, procedures, and
controls to ensure the new rules are not breached.
Governance & Independent
Trustee Directors
29 August 2018
Bill not proceeding
The Superannuation Laws Amendment (Strengthening Trustee
Arrangements) Bill 2017 is understood to have been shelved, after failing to
pass the senate.
The Bill would have required RSE licensees to have at least one-third
independent directors and for the Chair of the Board of directors to be one of
these independent directors.
Despite the Bill remaining Government policy, the Bill is being “shelved”. It
was last debated in late 2017.
QMV recommends that superannuation trustees note that the policy is
unlikely to progress further in its current form. It remains important to
ensure that existing equal representation requirements remain in place
for employer-sponsored superannuation funds.
Treasury Laws Amendment
(Consumer Data Right) Bill
2018
15 August 2018
Exposure draft legislation
Treasury has opened consultation on the Treasury Laws Amendment
(Consumer Data Right) Bill 2018. The Consumer Data Right is an economy
wide competition policy which provides consumers with control over the
sharing and use of data related to them.
The Bill would create privacy safeguards to enhance existing protections
under Privacy Law, empower the ACCC to make rules, and CSIRO Data61
to create technical and data standards.
The legislation enables certain industries to be designated, with open
banking the initial application to be followed by energy and telecomms.
QMV recommends that superannuation trustees review the exposure
draft legislation and provide feedback directly to the Treasury. While
open super might not be in immediate plans, there may be
opportunities for superannuation trustees to be data recipients.
Strategic risks or opportunities should also be considered.
🔗Link to Details
🔗Link to Details
🔗Link to Details

3. August 2018 | Pension & Superannuation RegulatoryUpdate
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While all care has been taken in the preparation of this information, QMV Solutions takes no responsibility for any loss or damage
suffered from relying on this information. This information is not intended to be financial, tax or legal advice.
Technical Changes & Updates
Super guarantee
determination withdrawn
1 August 2018
Determination withdrawn
The ATO has withdrawn Superannuation Guarantee Determination SGD
94/4, that a person who provides home based child care is an employee for
the purposes of the Superannuation Guarantee (Administration) Act 1992.
The determination has been withdrawn as the arrangements it covered are
less common in today’s child care environment. Most day care services are
established as commercial ventures today.
Certain statements made in the determination are therefore no longer
representative of modern practices in the industry. The ATO has directed
taxpayers to Superannuation Guarantee Ruling SGR 2005/1 for the what
principles to apply to determine whether a person is an employee for the
purposes of the SGAA.
No change or action required of superannuation trustees, however
QMV recommends that trustees consider communicating the change
to any employer sponsors who may be impacted.
Competition in the
Australian Financial System
2 August 2018
Report released
The Productivity Commission has released its report on Competition in the
Australian Financial System has been released to the public.
The report looks at the provision of financial services and the interaction of
market participants, issues facing the consumers of financial services and
the functions and activities of the regulators.
The report findings included that:
▪ many of the highly profitable financial institutions have achieved that state
with persistently opaque pricing; conflicted advice and remuneration
arrangements; layers of public policy and regulatory requirements that
support larger incumbents; and a lack of easily accessible information,
inducing unaware customers to maintain loyalty to unsuitable products;
▪ trail commissions should be banned and clawback of commissions from
brokers restricted; and
▪ poor advice and complex information supports persistent attachment to
high margin products that boost institutional profits, with product features
that may well be of no benefit.
QMV recommends that superannuation trustees note the
recommendations, as possible influences on policy.
Report into coal miners’
superannuation
14 August 2018
Report
The Western Australian government has released a report on a review into
Coal Industry Superannuation, announcing a review into the Coal Industry
Superannuation Act (1989) into state parliament. The Act governs
arrangements for the superannuation fund for private sector coal mine
workers in WA.
Since 2014, coal miners’ super has been provided by a not-for-profit APRA
regulated fund. In light of this change, the report considered whether the act
should be retained.
QMV recommends that RSE licensees assess whether they are
impacted by the WA state Act.
🔗Link to Details
🔗Link to Details
🔗Link to Details

4. August 2018 | Pension & Superannuation RegulatoryUpdate
advisory | delivery | professional resources
While all care has been taken in the preparation of this information, QMV Solutions takes no responsibility for any loss or damage
suffered from relying on this information. This information is not intended to be financial, tax or legal advice.
Policy & Guidance
Women in Retirement
14 August 2018
Senate Committee Report
The government has noted various recommendations made in the report
from the Senate inquiry into economy security for women in retirement.
The Senate Economics References Committee made 19 recommendations
in its report A husband is not a retirement plan: achieving economic security
for women in retirement of 29 April 2016.
The proposed recommendations included scrapping the $450 monthly
payment threshold required for SG, raising the Superannuation Guarantee
to 12% faster, and superannuation guarantee on paid parental leave.
QMV recommends that superannuation trustees note the policy
position of the government in relation to the recommendations.
ATO Website Updates
August 2018
The ATO has made several updates to their website, detailing new
information regarding superannuation and other relevant information,
including:
▪ advice for funds where members have a market linked pension;
▪ superannuation contributions and associated reporting obligations;
▪ excess non-concessional superannuation contributions; and
▪ successor fund transfer reporting protocol.
QMV recommends that superannuation trustees stay up-to-date with
the guidance the ATO is providing via their website.
More Questions or Need Support?
🔗Link to Details
🔗Link to Details
QMV partners with superannuation fund trustees and
administrators to adapt to changes in the legal and
regulatory environment.
If you have any questions or need assistance, you can
contact me directly at jsteffanoni@qmvsolutions.com
Jonathan Steffanoni, Principal Consultant, Legal & Risk