Responsible superannuation entity (RSE) licensees will know the results of the first MySuper performance test, under the Your Future, Your Super (YFYS) regime, on 31 August 2021.
In a letter to RSE licensees from Australian Prudential Regulation Authority (APRA) on the implementation of the YFYS reforms, the regulator said licensees that were advised that a product had failed would need to give notice in writing to beneficiaries who held the product of its failure within 28 days.
“The Australian Securities and Investments Commission (ASIC) will be checking that communications made by RSE licensees about performance do not mislead members and are consistent with the required format,” APRA said.
“Following the first round of assessments under the performance test, APRA will engage with RSE licensees considered to be at material risk of failing the test a second time to understand their plans to improve performance, and their contingency plans to deal with the implications of potentially failing the test again.
“These contingency plans would include pre-positioning to be able to give effect to an orderly transfer of members to another fund, if required.”
APRA noted in the coming weeks it would also publish a report on findings of tis unlisted assets valuation review, and consult on proposed changes to the investment governance prudential standards.
In the coming months, APRA said it would publish a report on key findings from its fund expenditure review.
It would also collect data on expenses of each fund on a look-through basis using more granular categories as part of its super data transformation program.
The expense submissions by each RSE licensee would be due by 30 September, 2021.