What happens if my super fund tries to offer a MySuper product without being authorised?

In Plain English

If a superannuation fund tries to offer a product called a "MySuper" product without having the proper permission (called "authority") from APRA (the Australian Prudential Regulation Authority), it's against the law. The person making the false claim could face a penalty. Also, if you haven't chosen where your super contributions should go, the super fund must put the money into an authorised MySuper product.

Detailed Explanation

According to the Superannuation Legislation Amendment (MySuper Core Provisions) Act 2012 and the Superannuation Industry (Supervision) Act 1993:

• Offering a product without authorisation: It is an offence under section 29W of the Superannuation Legislation Amendment (MySuper Core Provisions) Act 2012 to represent a class of beneficial interest in a regulated superannuation fund as a MySuper product if the RSE licensee for the fund does not have the authority to offer it as such. The penalty for this offence is 60 penalty units. This is a strict liability offence.
• APRA's Role: APRA is responsible for authorising RSE licensees to offer MySuper products (Superannuation Legislation Amendment (MySuper Core Provisions) Act 2012 section 29T). APRA also has the power to cancel this authority under certain conditions (Superannuation Legislation Amendment (MySuper Core Provisions) Act 2012 section 29U).
• Default Contributions: If a member of a regulated superannuation fund does not make an election as to where their superannuation contributions should be invested, the trustee of the fund must allocate those contributions to a MySuper product of the fund (Superannuation Legislation Amendment (MySuper Core Provisions) Act 2012 section 29WA).