The second tranche of Stronger Super is in need of more clarity, according to AIST in its submission on the Bill, with calls for clearer terminology and the legal boundaries of trustees.

Submissions are being accepted from industry participants on the Superannuation Legislation Amendment (Trustee Obligations and Prudential Standards) Bill 2012, the second tranche of the Stronger Super reforms, with the Australian Institute of Superannuation Trustees (AIST) having submitted its overall positive submission.

"AIST supports the priority given by the Government in addressing trustee duties and prudential standards in the second tranche of Stronger Super legislation," AIST said in the submission, adding that it had identified new terms and concepts whose meanings are unclear and are not legally settled.

"The use of new terms should be avoided wherever possible, so that extensive, time-consuming and uncertain litigation is avoided, and the intent of the Government's reform agenda is more clearly implemented."

In a number of points made by the association, AIST welcomed the Government's focus on trustee duties and prudential standards but highlighted a number of areas still not addressed including lack of details around conduct that contravenes scale requirements and the need for better protection for super funds, members and employers if the cancellation of MySuper authorisations by APRA should ever occur.

AIST also asked for the annual determination of scale to be part of a fund's risk management process and that any unnecessary fee duplication in the transition to MySuper should be explicitly identified as conduct in breach of the financial interests test.

Additionally, AIST asked that the financial interests comparison of MySuper products should be based on net returns to members together with a standardised risk measure and not include ancillary services to members as that is "at odds with the core objectives of MySuper."

Included in the Government's draft are more details on the duties of Registrable Superannuation Entity (RSE) licensees, including duties relating to MySuper products, and personal duties for directors or corporate trustees.

Also included in the draft are details on the Australian Prudential Regulation Authority (APRA) with the power to make prudential standards.