In the media
Default fund review a "systemic risk":
FSC
MEDIA – 25 July 2014 – The current Fair Work
Commission (FWC) process by which default superannuation funds are
reviewed will cost consumers and employers $400 million, new
research has found, with more than 100,000 employers and over 2.5
million working Australians will be affected, said the report.
More...
Inaugural meeting of the Global Investment Forum
(P20)
ASFA – 25 July 2014 – The GIF will build on the
recommendations coming out of the current round of B20 and G20
meetings to develop an action plan that will deliver to governments
the basic requirements of long-term investors for successful
capital-raising for infrastructure and other long-term investments
(24 July 2014). More...
Investors looking for responsible super
funds
MEDIA – 24 July 2014 – More and more Australians are
looking to "future-proof" their super through responsible
options, Responsible Investment Association Australasia's 2014
Benchmark Report reveals.
More...
Transparent and independent quality filter essential for
default super
ISA – 24 July 2014 – ISA has requested that an inquiry
be conducted into the prevalence of inducements being offered by
banks to their business banking clients in exchange for securing
exclusive rights to default super contributions of employees in a
workplace.
More...
Super boards not ready for independent
directors
MEDIA – 22 July 2014 – About one-third of
superannuation trustee boards are unlikely to make changes seeking
independent directors while some of those who will add independent
directors would only do so if it became a legal requirement.
More...
ASIC "disappointed" with property
schemes
MEDIA – 24 July 2014 – ASIC commissioner has labelled
the standard of investor disclosure in the unlisted property sector
as "disappointing". The corporate regulator recently
conducted a review of its surveillance into the managed investment
and superannuation sectors, including listed and unlisted property
funds.
More...
Inquiries put retirement income products up for
debate
SPAA – 22 July 2014 – The Financial System Inquiry and
Government Pension Review have the potential to open up the
availability of relevant and appropriate retirement income
products, Senior Manager, Technical & Policy, of SPAA told the
organisation's Technical Conference. The FSI, in its interim
report, said the retirement phase of superannuation was
underdeveloped and did not meet the risk management needs of many
retirees.
More...
Industry super funds out-perform bank owned super funds
over 1, 3, 5, 7 and 10 years
ISA – 21 July 2014 – Commission-free industry super
fund balanced funds again outperformed retail super balanced funds
(such as those owned by the big banks) over all time periods (based
on median rolling returns to 30 June 2014).
More...
Establishing an enhanced public register of financial
advisers
DEPARTMENT OF FINANCE – 17 July 2014 – The Minister
for Finance said the Government is progressing to establish an
enhanced public register of financial advisers. A dedicated
industry working group will consult with all relevant stakeholders
to develop the best way of setting up this public register of
financial advisers, and will consider the scope and content of the
register (including a record of each adviser).
More...
FPA welcomes CBA response
FPA – 18 July 2014 – The Financial Planning
Association (FPA) welcomes today's announcement from the
Commonwealth Bank of Australia (CBA) about measures to improve
adviser education and training, increase transparency in adviser
quality and support the FPA 10 Point Plan. More...
ASIC raises concerns on limited licensing
MEDIA – 17 July 2014 – While the implementation of the
limited AFSL regime for accountants is still in its early stages,
ASIC has discovered a number of "concerning" trends
emerging from the application process. ASIC Commissioner Greg
Tanzer said one of these trends was "inadequate or no evidence
of RG146 training course completion for all or some of the
financial products sought under the application".
More...
AIST to provide comprehensive response to the Financial
Systems Inquiry interim report
AIST – 16 July 2014 – AIST CEO said AIST welcomed the
Inquiry's support of a robust regulatory framework for
superannuation, its recognition of superannuation's important
role in the economy, and the need to develop clearer objectives for
the superannuation system.
More...
ADCU to pave the way for low fees on
Super
ADCU – 16 July 2014 – To address the exorbitant fees
affecting retirement balances, Australian Defence Credit Union
(ADCU) recently released two new low-fee investment options, the
ADCU Capital Guaranteed Super and ADCU Capital Guaranteed Pension.
More...
Productivity Commission recommends trial of new bid
processes to attract super investment
ISA – 15 July 2014 – The "hybrid" model the
Commission proposes for trial would encompass early participation
by long-term investors such as superannuation funds in public
infrastructure projects, and the unbundling of the process for
securing financing from procurement.
More...
Murray hands down interim report
MEDIA – 15 July 2014 – Financial System Inquiry
chairman David Murray has released his interim report. Overall, the
"initial assessment" of the FSI is that the Australian
financial system has performed "reasonably well" but
warns there is no room for complacency, flagging future financial
crises, fiscal pressures, productivity growth, technology change
and international integration as upcoming challenges for the
system.
More...
Alternative assets hit US$5.7trn
MEDIA – 15 July 2014 – Investment in alternative
assets continues to rise, with total global alternative assets
under management (AUM) climbing from US$5.1 trillion in 2012 to
US$5.7 trillion in 2013. According to the research, the largest
proportion of this is managed in direct estate funds, followed by
private equity fund managers and hedge funds.
More...
Senate support for Financial Advice Law Improvements
according to Finance Minister
DEPARTMENT OF FINANCE – 15 July 2014 – Consistent with
our comprehensive statement of 20 June 2014, to provide clarity and
certainty for the financial advice industry and investors seeking
financial advice, the Government's changes to FOFA have been
implemented through regulations which took effect on 1 July 2014,
where that was legally possible.
More...
Coles announces financial services joint
venture
MEDIA – 15 July 2014 – Coles has announced its
intention to form a joint venture financial services business with
GE Capital Australia. An agreed memorandum of understanding
outlines this 50:50 joint venture business that will initially
offer credit cards, and personal finance products. The business
will commence operations during 2015, subject to obtaining the
relevant regulatory licenses and approvals. More...
Best super funds for 2013/14 financial year
named
SUPERRATINGS – 21 July 2014 – Australian
superannuation funds had another strong 2013/14 financial year,
with the median balanced option delivering a 12.7% return over the
period. Telstra Super was the best performing superannuation fund
over the 2013/14 financial year, recording a 15.8% return to
members. Intrust Super and UniSuper rounded out the top three, with
returns of 14.0% and 13.9% respectively. The median balanced option
return of 12.7% for the 2013/14 financial year marks the seventh
highest return on record since the introduction of compulsory
superannuation in 1992. Following on from last financial year's
near record 14.7% return, this means that Australian superannuation
funds have delivered their second consecutive year of double digit
growth for members and returned more than 29% over the past two
years. More...
Cases
Dowling and Commissioner of Taxation [2014]
AATA 474
TAXATION – Superannuation – Excess non-concessional
contributions tax – Whether special circumstances –
Whether discretion under Division 292 of the Income Tax Assessment
Act 1997 (Cth) can be exercised – Decision under review
affirmed - Income Tax Assessment Act 1997 (Cth) ss 292-5,
292-465. More...
Financial Services Council Ltd v Industry Super
Australia Pty Limited [2014] FCAFC 92
INDUSTRIAL LAW – Fair Work Commission – four yearly
review of default fund terms – two members of Expert Panel
disqualified due to conflicts of interest – Fair Work Act
2009 (Cth) ss 620(1A) and 622(3) – whether President
entitled to appoint himself to Expert Panel – whether Expert
Panel reconstituted in accordance with Act. More...
Legislation
Commonwealth
Tax and Superannuation Laws Amendment (2014 Measures
No. 4) Bill 2014
Parliamentary Secretary to the Treasurer Steve Ciobo second
reading speech introducing the legislation on 17 July 2014.
More...
This publication does not deal with every important topic or change in law and is not intended to be relied upon as a substitute for legal or other advice that may be relevant to the reader's specific circumstances. If you have found this publication of interest and would like to know more or wish to obtain legal advice relevant to your circumstances please contact one of the named individuals listed.
