FSC Standards Review
The FSC has conducted a review of our Standards to assess their relevance and utility to members. Following consultation with members the FSC has identified that some Standards are unused or have been superseded by legislation, and others would be better served as Guidance Notes.
The following Standards will be converted into Guidance Notes:
- Standard 6: Product Performance – Calculation of Returns
- Standard 8: Scheme Pricing
- Standard 8A: Crediting Rates
- Standard 9: Valuation of Scheme Assets and Liabilities
- Standard 10: Presentation of Past Performance Information and Visual Promotions
- Standard 17: Errors in Pricing/Crediting Rates when Determining Scheme Interests – Correction and Compensation.
Following consultation with members the following two Standards have been repealed:
- Standard 7: References to FSC Logo
- Standard 20: Superannuation Governance Policy
In relation to Standard 20: Superannuation Governance Policy, following the Government’s implementation of the Royal Commission recommendation 3.1: ‘Trustees of Registrable Superannuation Entities should hold no other role or office’, the FSC’s assessment is that the Standard has been largely superseded by legislation. The Royal Commission recommended that trustees be prohibited from having a duty to act in the interests of another person and that this obligation should apply to each individual trustee.
Following the repeal of Standard 20 the FSC will begin work with members on a modernised Guidance Note for trustees that provides best practice guidance on ESG risk management and trustee board diversity policies.
FSC members will not be required to attest to compliance with these Standards effective from 1 July 2021, meaning that they will be excluded from the next attestation process for the compliance year ending 30 June 2022 which occurs in the second half of 2022 (FSC request to be sent in early July 2022 and completed attestations due 30 September 2022).