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Compliance

ASIC provides extension on super calculators

ASIC has granted an extension for providers of superannuation and retirement calculators to comply with the requirement generic financial calculators must account for inflation.

Providers now have until 1 July 2019 to comply with the requirement in line with super reforms that may affect how super calculators should present and calculate estimates in the future.

These reforms have been deferred until 1 July 2019, during which period ASIC will further review the suitability of the prescribed discount rate for calculators that produce retirement estimates.

It will take into consideration the interests and further views of consumers, superannuation and retirement calculator providers, and actuaries.

If a generic financial calculator makes an estimate of a future return or payment, it must adjust for inflation using an assumed inflation rate of 2.5 per cent.

The corporate regulator said it will monitor the impact of these reforms to assess the ongoing suitability of this requirement to account for inflation.

The extension does not affect other provisions of ASIC’s relief for calculators.

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