POWERED BY MOMENTUM MEDIA
Funds cautious on divorce super splits
Superannuation funds should not be compelled to develop templated arrangements to help divorcing couples split their superannuation, according to the Association of Superannuation Funds of Australia (ASFA).
While supporting simplification of the laws around divorce and superannuation, ASFA told the Australian Law Reform Commission that it does not agree that superannuation trustees should be required to develop standard splitting orders based on common scenarios.
In doing so, it said this would be effectively bringing superannuation funds into the divorce as a third party.
ASFA cited one member fund which advised that it completed around 2,000 family law responses a year and generally objected to around 20 per cent of the draft orders on the basis that they were poorly worded.
“This fund regularly encounters situations where the parties have used a standard template but have made amendments or included other orders that are inconsistent with the template,” the ASFA submission said.
Discussing the templating issue, the submission said, “Not only does this impose an unduly onerous obligation on the trustee - a third party - but there is a risk that a member and/or non-member spouse may rely on a ‘standard’ splitting order that is not appropriate to their circumstances and which may result in detriment”.
“If it were considered that superannuation splitting orders - in accumulation funds - are sufficiently uniform as to facilitate the creation of one or more standard orders then it would be appropriate if these were to be developed by the Family Court as a form, authorised by the Principal Registrar and published on the Family Court website,” it said. “In any event, standard forms should not apply to defined benefit schemes, due to the nature and complexity of defined benefit interests.”
Recommended for you
Governor Bullock took a more hawkish stance on Tuesday, raising concerns over Trump’s escalating tariffs, which sent economists in different directions with their predictions.
Equity Trustees has announced the appointment of Jocelyn Furlan to the Superannuation Limited (ETSL) and HTFS Nominees Pty Ltd (HTFS) boards, which have oversight of one of the companies’ fastest growing trustee services.
Following growing criticism of the superannuation industry’s influence on capital markets and its increasing exposure to private assets, as well as regulators’ concerns about potential risks to financial stability, ASFA has released new research pushing back on these narratives.
A US-based infrastructure specialist has welcomed the $93 billion fund as a cornerstone investor.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Global X GlobalX FANG+ ETF
33.51 3 y p.a(%)
2
Spire Oaktree Opportunities XI Second Close
32.68 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.62 3 y p.a(%)
4
Spire Oaktree Opportunities XI First Close USD
31.36 3 y p.a(%)
5
Fidante Credit Suisse Global Private Equity
29.60 3 y p.a(%)
