The Federal Government has pushed through new laws on the disclosure of fees and charges levied by superannuation funds.

Parliamentary Secretary to the Treasurer Ross Cameron says the reforms mean additional information will be disclosed in product disclosure statements and periodic statements.

Under reforms to the Superannuation Industry (Supervision) Act 1993 that come into force on July 1, all existing trustees will have a two-year transition period in which to apply for a licence and to register eligible superannuation funds. New trustees operating after July 1 this year must be licensed and register the superannuation entity before accepting contributions.

As part of the reforms, trustees will have to comply with prudential requirements regarding adequate resources, risk management and outsourcing and meet basic standards of fitness and propriety. The reforms also include measures for transferring member benefits from funds that fail the licensing requirements or choose not to meet them.

Investment and Financial Services Association CEO Richard Gilbert says the reforms have been a long time coming, but it is a good result for consumers.

“We welcome the transition period to give industry enough time to adjust to the raft of changes about to be introduced,” he said. “Choice of fund legislation will further increase competition in the industry and lead to downward pressure on fees and charges.”

The Australian Prudential Regulation Authority has released guidance material for the new superannuation licensing regime including an explanatory guide on licensing and registration, and detailed application forms and information on licence and registration applications. It also announced a series of national workshops on superannuation licensing for trustees, beginning mid-August.