Cross-agency process for retirement income stream products
In 2017, the government extended the tax exemption on earnings in the retirement phase to new innovative retirement income stream products. These are new types of products that aim to provide consumers with greater choice and flexibility when considering their retirement product options, help them manage the risk of outliving their retirement savings and enhance their standard of living in retirement.
To support industry in developing new innovative retirement income stream products, the government also provided a streamlined pathway for product providers to engage with four key agencies about a proposed product – ATO, DSS, APRA and ASIC – in a single process. The cross-agency process is voluntary and can be used at any time during the development of an innovative retirement income stream product. It allows a product provider to test concepts and seek information and guidance on how these products meet the requirements of the relevant legislation.
What is ASIC’s role in the cross-agency process?
ASIC’s role in the cross-agency process does not extend to any formal approval of superannuation or other products, or the provision of legal advice. However, ASIC can provide feedback to product providers on issues of concern that are within its conduct, disclosure and licensing jurisdiction under the Corporations and Superannuation legislation.
Product providers can also still contact ASIC, or any one or more of the other agencies, separately in relation to issues arising in relation to retirement income products, as desired.
How to apply
The ATO has lead responsibility as the coordinator of the cross-agency process. The ATO provides a central entry point and submission form for product providers to give details of the proposed innovative retirement income stream product.
Please note that this cross-agency process is separate from ASIC's Innovation Hub. ASIC's innovation hub exists to foster innovation that could benefit consumers by helping Australian fintech startups navigate our regulatory system.