A clear and concise summary of legal and regulatory developments affecting the Australian pensions and superannuation industry.

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.
December 2018 |Pensions & Superannuation RegulatoryUpdate
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In Brief
Major Reform Updates
Member Outcomes &
Strategic Business Planning
12 December 2018
Standards & Guidance Issued
APRA has released a final package of new and enhanced prudential
requirements designed to strengthen the focus of RSE licensees on member
outcomes.
The package introduces an outcomes assessment, requiring RSE licensees
to annually benchmark and evaluate their performance in delivering sound,
value-for-money outcomes to all members, covering both MySuper and
choice products.
The package consists of new prudential standards and guidance:
▪ SPS 515 Strategic Planning and Member Outcomes
▪ SPG 515 Strategic and Business Planning
▪ SPG 516 Outcomes Assessment
The package also amends SPS 220 Risk Management to transfer the
location of the requirement to have a business plan.
The commencement date for the new measures has been set to 1 January
2020, where it was previously proposed for 1 January 2019.
QMV recommends that superannuation trustees commence a review to
position strategic business planning, monitoring and reporting
practices to align with the new requirements before the requirements
commence.
🔗Link to Details
All eyes were on the Protecting Your Super Bill, which didn’t have adequate support
from the Senate cross bench to warrant debate. It is now unlikely that the Bill will pass
before Parliament is prorogued due to the early budget date and sitting calendar.
The Consumer Data Right Bill also failed to be introduced to Parliament; however,
Treasury have released the draft Bill and Data 61 the technical standards. APRA moved
forward with its focus on member outcomes, releasing new prudential requirements
being released in addition to proposed legislation.
Consultation commented on Retirement Income Disclosure aspects of the Retirement.
Income Framework, which also includes the CIPR, Retirement Income Covenant, and
related changes.
There were also important developments related to financial advisor training and
qualifications, the extension of relief which was set to expire, and a Parliamentary report
on superannuation investment in agriculture.

2. December 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.
Retirement Income
Disclosure
10 December 2018
Consultation
Treasury has released a consultation paper proposing the introduction of a
retirement income fact sheet which presents the following simplified metrics
to simplify informed decision making:
▪ the amount of periodic income the product would provide;
▪ the likelihood that income may fall short in a given period;
▪ the degree of longevity risk protection the product provides; and
▪ the level of access to the underlying capital or for lump sum
withdrawals.
The consultation seeks views on:
▪ appropriateness of the proposed metrics in providing information for
consumers in selecting a retirement income product;
▪ the method used to calculate risk of retirement income; and
▪ the presentation of the metrics for the fact sheet.
Submissions for this consultation paper are due by 28 March 2019.
QMV recommends that superannuation trustees review the
consultation paper and provide relevant feedback to the Treasury
before the deadline. The proposed disclosure requirements should
also be considered as part of superannuation trustee retirement
income strategy and framework.
Financial Advice Training
Standards & CPD
21 December 2018
Legislative instrument determined
The Financial Adviser Standards and Ethics Authority (FASEA) has
registered determinations affecting AFS Licensees providing personal
advice. The following requirements will progressively replace Regulatory
Guide 146 Licensing: Training of financial product advisers, which will
continue to apply for general advice.
The Corporations (Relevant Providers Degrees, Qualifications and Courses
Standard) Determination 2018 requires financial advisors and planners to
complete a bachelor or higher or equivalent qualification, the determination
includes a list of current and historical degrees approved by FASEA.
The draft Corporations (Relevant Providers Exams Standard) Determination
2019 requires Relevant Providers to undertake a 3.5 hour (including reading
time) invigilated examination comprising at least 70 questions with a mix of
selected response and written response question types.
The Corporations (Relevant Providers Continuing Professional Development
Standard) Determination 2018 requires financial advisors and planners to
complete 40 hours of CPD each year of which 70% will need to be approved
by the licensee including the minimum hours for CPD categories:
▪ Technical – 5 hours
▪ Client Care and Practice – 5 hours
▪ Regulatory Compliance and Consumer Protection – 5 hours and
▪ Professionalism and Ethics – 9 hours
▪ The balance up to 40 hours will consist of qualifying CPD, technical
competence or industry specialisation
QMV recommends that superannuation trustees licensed to provide
financial advice assess the impact of the changes on existing financial
advisor qualification and continuing professional development policies
and procedures.
🔗Link to Details
🔗Link to Details

3. December 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.
Consumer Data Right
21 December 2018
Package released
Treasury has released a package of material related to the Consumer Data
Right, which is planned to commence with a limited form of Open Banking
from 1 July 2019. The package contains the following material:
▪ exposure draft of Treasury Laws Amendment (Consumer Data Right) Bill
2018 which was intended to be introduced to Parliament in the December,
but is likely to be introduced in February;
▪ draft Privacy Impact Statement and summary for consultation;
▪ the ACCC has released CDR Rules Outline providing guidance to data
holders and potential data recipients to guide development of new product
offerings ahead of the start of the CDR regime;
▪ Data61 has release Technical Standards, including API Standards,
Security Standards, and CX and UX Consent mechanism;
QMV recommends that superannuation trustees intending to register
as data recipients review the detailed material as part of the
implementation plans. All other superannuation trustees should stay
abreast of the regime, as it is likely that it will eventually be extended
to superannuation and pensions.
Single Touch Payroll
5 December 2018
Bill passed the Senate
The Treasury Laws Amendment (2018 Measures No 4) Bill 2018 was
passed by the Senate on 5 December 2018. The Bill contains various
measures, including broadening single touch payroll reporting to all
employers and require employers to include salary sacrificed amounts paid
to their employees’ nominated superannuation funds.
This will be effective 1 July 2019 (the current reporting framework
commencing 1 July 2018 only applies to employers with 20 or more
employees). The Bill will now move to the House of Representatives, having
been amended in the Senate.
QMV recommends that superannuation trustees note the change,
which is significant to employer sponsor relations and strategic
business planning.
Superannuation Guarantee
Compliance
5 December 2018
Passed Senate
Treasury Laws Amendment (2018 Measures No 4) Bill 2018 was passed by
the Senate on 5 December 2018, with several amendments. The Bill will
now move back to the House of Representatives.
The Bill includes measures which will target employer non-compliance with
Superannuation Guarantee obligations, based on recommendations from
the Superannuation Guarantee Cross-Agency Working Group, including:
▪ enabling the Commissioner to issue non-compliant employers with
directions to pay unpaid superannuation guarantee and to undertake
superannuation guarantee education courses; and
▪ allowing the Commissioner to disclose more information about
superannuation guarantee non-compliance to affected employees.
QMV recommends that superannuation trustees engage with
contributing employers and member service functions to ensure that
appropriate information is available to members on unpaid
superannuation contributions.
🔗Link to Details
🔗Link to Details
🔗Link to Details

4. December 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
Work Test Exemption for
Recent Retirees
10 December 2018
Regulations released
Treasury has issued regulations to provide a one-year exemption from the
work test for superannuation contributions to allow recent retirees to boost
their superannuation balances.
The Treasury Laws Amendment (Work Test Exemption) Regulations
2018 amends the Superannuation Industry (Supervision) Regulations 1994
and the Retirement Savings Accounts Regulations 1997, and it ensures that
individuals aged 65 to 74 years with total superannuation balances below
$300,000 can make voluntary contributions to their superannuation for 12
months from the end of the financial year in which they last met the work
test.
QMV recommends that superannuation trustees and advisers review
the new regulations and provide necessary information and advice to
members affected. Operational procedures related to acceptance of
such contributions may need to be reviewed internally of with service
providers.
Indirect Fee & Cost
Disclosure Deferral (RG97)
20 December 2018
Legislative Instrument issued
The Australian Securities and Investments Commission (ASIC) has issued
ASIC Class Order [CO 14/1252], extending the transition periods for certain
fees and costs disclosures for superannuation funds and managed
investment schemes beyond periods ending 30 June 2018.
The deferral of commencement is due to upcoming consultation on the
proposals arising out of recommendations made in the review of the fees
and costs disclosure regime in Report 581 Review of ASIC Regulatory
Guide 97: Disclosing fees and costs.
QMV recommends that superannuation trustees remain attentive the
developments during the consultation and plans to adequately monitor
indirect fees and costs in a way which enables disclosure consistent
with requirements.
29QC Deferral
17 December 2018
Amendments Introduced
ASIC has issued ASIC Superannuation (Amendment) Instrument
2018/1080, which extends for a period of 5 years the exemption for
superannuation trustees from the requirement in subsection 29QC(1) of the
Superannuation Industry (Supervision) (SIS) Act 1993 until 1 January 2024.
The obligation on superannuation trustees is to ensure that, where it is
required to give information to the Australian Regulation Prudential Authority
(APRA) under a reporting standard that requires the information to be
calculated in a particular way, and where the same or equivalent information
is given to other persons, the information given to the other person is
calculated in the same way as the information given to APRA.
The deferral is intended to allow for the requirements for the Choice product
dashboards and indirect fee and cost disclosure requirements to be settled
prior to commencement.
QMV recommends that superannuation trustees consider the impact
that the future commencement of the requirement may have on
disclosure and finance sector reporting obligations.
🔗Link to Details
🔗Link to Details
🔗Link to Details

5. December 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.
ATO Ruling on Total
Superannuation Balance
19 December 2018
Amendments Introduced
The Australian Taxation Office (ATO) has issued LCR 2016/12DC
Superannuation reform: total superannuation balance for consultation.
The draft ruling makes updates to describe how the Commissioner will
calculate an individual’s Total Superannuation Balance and apply the law
proposed in Treasury Laws Amendment (2018 Superannuation Measures
No. 1) Bill 2018 which applies to limited recourse borrowing arrangements.
QMV recommends that superannuation trustees, administration
service providers review proposed changes and ensure that system
configuration is consistent with the draft ruling – however we note that
application will be most relevant to Self-Managed Superannuation
Fund trustees with LRB Arrangements in place.
Superannuation Income
Stream Benefit Definition
10 December 2018
Guidance
Treasury has issued Treasury Laws Amendment (Miscellaneous
Amendments) Regulations 2018, which amends the Income Tax
Assessment Regulations 1997 to clarify the meaning of “superannuation
income stream benefit”.
The key factor in determining tax treatment of the super benefit is to first
determine whether the benefit is a “lump sum” or “income stream benefit”.
This amendment will allow superannuation funds to continue to claim the
earnings-tax exemption on certain assets.
QMV recommends that superannuation trustees confirm that the
current accounting approach to taxation of income stream benefits is
consistent with the determination.
Policy & Guidance
AML-CTF Superannuation
Sector Guidance
15 December 2018
Guidance Issued
AUSTRAC has published guidance for the superannuation sector on
applying the obligations of the Anti-Money Laundering and Counter-
Terrorism Financing Act 2006. The Guidance intends to assist
superannuation trustees in:
▪ better understanding their obligations under the Act;
▪ identify risks and potential criminal actions arising from the conduct of
superannuation funds and their clients; and
▪ explain how these reporting entities can use their AML/CTF ‘toolkit’ to
mitigate the industry-specific money laundering and terrorism financing
(ML/TF) risks they face.
QMV recommends that superannuation trustees engage the AML-CTF
officer to review existing AML-CTF policies, training and practices to
ensure consistency with the guidance.
🔗Link to Details
🔗Link to Details
🔗Link to Details

6. December 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.
Superannuation Agriculture
Investment
12 December 2018
Report Issued
The House of Representatives Standing Committee on Agriculture and
Water Resources has issued a report on its Inquiry into superannuation fund
investment in agriculture.
The report makes recommendations intended to promote greater investment
in agriculture from the superannuation trustees. Key recommendations
include:
▪ improving agricultural statistics and data available;
▪ reducing tax and duty related barriers to investment;
▪ developing an information and promotion campaign to target
superannuation trustees; and
▪ establishment of a superannuation and agriculture investment working
group.
QMV recommends that superannuation trustees review the report,
considering that the report may be of interest to the investments and
strategic functions. The recommendations do not directly impact
superannuation trustees, however may result in initiatives targeted at
attracting the interest of superannuation trustees and investment
managers.
More Questions or Need Support?
🔗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