Proposed super regs dispense with ‘up to date at all times’
Superannuation funds have been cut some slack within a proposed new reporting regime which would see the current requirements around reporting executive remuneration changed from ‘up to date at all times’ to annual reporting.
The change has been revealed in an exposure draft of the new regulatory regime released by Treasury which came in the wake of the Senate’s disallowance of regulatory changes which were sought by the Assistant Treasurer and Minister for Financial Services, Stephen Jones, last year.
The exposure draft makes clear that while the current regime requires superannuation funds to keep remuneration details of executives published on their web sites “up to date at all times”, the new regime will simply require those same details to be “published annually on the entity’s website within three months after the end of the financial year for the entity”.
The changes are included within the exposure draft regulation for The Treasury Laws Amendment (Measures for Consultation) Regulations 2023: Financial reporting and auditing of registrable superannuation entities) which the Government says are intended “to impose financial reporting and auditing obligations on superannuation funds that are consistent with the requirements that apply to public companies and registered schemes”.
However, while cutting funds some slack around reporting executive remuneration, the regulatory changes have tightened up the time-frames around fund information reporting by reducing the reporting period from the current six months to three months.
“The change is considered appropriate given that the financial report, directors’ report and auditor’s report for the entity are required to be published within three months after the end of the financial year for the entity,” the exposure draft explanatory memorandum said.
The exposure draft also removes the ability of superannuation funds to rely on “abridged” financial information stating that funds cannot satisfy they reporting obligations by published abridged financial information.
“This improves transparency (by requiring the provision of full financial information) and also reduces regulatory burden by reducing the number of different types of information and documents that are required to be prepared for registrable superannuation entities,” it said.
…because this is the most important thing in the industry at this point in time!!!