In the media
APRA defends stance on alleged corruption
MEDIA – 28 November 2014 – A Federal government
watchdog admits it's not in a rush to tackle alleged union
corruption in some industry superannuation funds. Instead, the
Australian Prudential Regulation Authority is relying on other
agencies which have more direct powers to address criminality.
More...
ASIC digital disclosure project to boost investor
understanding
ASIC – 28 November 2014 – Today ASIC announced a joint
industry project to develop innovative, digital financial product
disclosure that aims to boost investors' understanding of
financial products.
More...
Chinese investment to buoy Australia's financial
services industry
MEDIA – 28 November 2014 – Australia's financial
services industry is set to boom on the back of increased private
Chinese investment according to one of China's most respected
bankers, according to the former chief executive of China Merchants
Bank.
More...
Gender inequality apparent in financial
services
MEDIA – 28 November 2014 – Women continue to be
under-represented in the top layers of management across the
financial services industry, a new government report has found. An
analysis of the gender composition at Australian financial services
companies conducted by the Australian Government Workplace Gender
Equality Agency (WGEA).
More...
LISC payment disclosure should be
separate
MEDIA – 27 November 2014 – The Australian Institute of
Superannuation Trustees (AIST) has come out
against the Government's plan to combine the disclosure of the
low income superannuation contribution (LISC)
payment with other super concessional payments.
More...
Industry super funds welcome APRA's move to greater
transparency on super investment returns
ISA – 27 November 2014 – APRA's September quarter
data on investment returns for MySuper products, issued today,
shows industry super funds continue to outperform bank-owned funds
with a median investment return of 1.51% compared with 1.02% for
the quarter ending September 2014.
More...
Prime Minister Tony Abbott announces cyber security
review, the first of its kind in 6 years
MEDIA – 27 November 2014 – Prime Minister Tony Abbott
has announced a review into cyber security to better protect the
Government and businesses from online attacks.
More...
Treasury seeks consultation on adviser
register
MEDIA – 27 November 2014 – Treasury has started the
consultation process on the public register of financial advisers,
with submissions closing on 17 December 2014. The adviser register
will be implemented as an amendment to the Corporations Act and
approved through regulation. More...
Government and Labor agree on specific FOFA
changes
MEDIA – 27 November 2014 – The Federal Government has
confirmed reports that it has succeeded in reaching agreement with
the Federal Opposition to reinstate key elements of its Future of
Financial Advice (FOFA) changes including grandfathering.
More...
New rules on foreign investment
"absurd"
MEDIA – 27 November 2014 – One of 12 recommendations
from the parliamentary inquiry into foreign investment in
Australian property inquiry, tabled in parliament on Thursday, was
that penalties be imposed on third parties who help offshore buyers
to breach foreign investment rules.
More...
Managed Funds, Australia, September 2014 (Cat No.
5655.0)
AUSTRALIAN BUREAU OF STATISTICS – 27 November 2014 –
At 30 September 2014, the managed funds industry had $2,439.5b
funds under management, an increase of $26.6b (1%) on the June
quarter 2014 figure of $2,412.8b.
More...
APRA Quarterly MySuper statistics: September
2014
APRA – 27 November 2014 – The APRA Quarterly
Superannuation Performance Statistics indicated there was $378.1
billion in assets in MySuper products, a 128.2% increase from
$165.7 billion in September 2013. September 2014 interim edition
(issued 27 November 2014).
More...
Business set to save $20 million with less red tape in
the super system
TREASURY – 26 November 2014 – From 1 July 2015, the
Government will expand access to the Small Business Superannuation
Clearing House (SBSCH). This means all businesses
with an annual turnover below the small business entity turnover
threshold, currently set at $2 million will be eligible to access
SBSCH with a cost free solution to help them meet their
superannuation obligations.
More...
HR head calls for overhaul of Fair Work Commission and
industry super governance
MEDIA – 26 November 2014 – The head of Australia's
HR institute is calling for wide ranging changes to the national
workplace relations framework, including an overhaul of the Fair
Work Commission, and better governance arrangements to improve
competitiveness and transparency of industry superannuation funds.
More...
MySuper assets up 128%: APRA
MEDIA – 26 November 2014 – Assets in MySuper products
have risen 128.2% and now account for a third of all the assets
held in APRA-regulated super funds, the prudential regulator has
revealed.
More...
Fund flows have doubled since 2010 – FSC Perpetual
Report
FPA – 25 November 2014 – Funds flowing into Australian
Managed Investment Trusts from overseas have doubled from $20
billion to $40 billion since 2010, according to a new report by
Perpetual Limited and the Financial Services Council.
More...
Superannuation administrator charged with $3.9 million
fraud in NSW
NSW POLICE SERVICE – 25 November 2014 – Fraud and
Cybercrime Squad detectives have today arrested and charged a
superannuation administrator with fraud offences valued at $3.9
million. Police will allege the man, who worked as a senior
administrator at a business providing services to a superannuation
company, altered documents and accessed member accounts to transfer
money into a number of other accounts.
More...
Industry funds not exempt from FOFA
FINSIA – 25 November 2014 – According to an ISA
statement, part seven of the Corporations Act, which deals with the
provision of retail financial products and services, applies to any
entity offering such services in the market – including all
super funds.
More...
What investors can expect from the financial services
inquiry
AFR – 25 November 2014 – With David Murray's
financial system inquiry (FSI) report expected to
be released in the next week, investors are turning their minds to
the winners and losers. This analysis focuses on the ramifications
for the banks' equity, hybrid and debt capital investors.
More...
Banking services to alternative remittance service
providers and the risk-based approach under the AML/CTF
Act
GOVERNMENT – 25 November 2014 – The AUSTRAC Chief
Executive Officer (CEO) has the power to refuse, suspend, impose
conditions upon or cancel the registration of a remitter where the
CEO is concerned that the continued registration of a remitter may
pose an unacceptably high level of money laundering, terrorism
financing or people smuggling risk. More...
Draft AML/CTF Rules specifying credit card operators
open for consultation
GOVERNMENT – 25 November 2014 – Draft AML/CTF Rules
specifying persons under Items 1, 2 and 3 of Table 1 in subsection
6(2) of the AML/CTF Act regarding credit card operators. A public
consultation period is open from 25 November 2014 to 9 December
2014.
More...
Single retirees will need to spend $767 more this year
in order to live a comfortable lifestyle in retirement: ASFA
Retirement Standards
ASFA – 21 November 2014 – The rising cost of living
means single retirees will need to spend $767 more a year than this
time last year, and couples will need to spend $1,131 more to live
a comfortable lifestyle in retirement, according to the September
quarter Retirement Standard released by the Association of
Superannuation Funds of Australia (ASFA).
More...
Advisers given extra time for FOFA
compliance
FINSIA – 20 November 2014 – The ASIC has said that it
will be taking a "facilitative approach" with licensees
until July next year. The vote has disallowed the Corporations
Amendment (Streamlining Future of Financial Advice) Regulation
2014 and reinstated consumer protections that featured in the
original Future of Financial Advice (FOFA)
legislation.
More...
APRA releases Quarterly Superannuation Performance
statistics for September 2014
APRA – 20 November 2014 – Total estimated assets at 30
September 2014, which include the assets of self-managed
superannuation funds and the balance of life office statutory
funds, were $1.87 trillion. Contributions to funds with more than
four members over the September 2014 quarter were $23.6 billion, up
7.2% from the September 2013 quarter ($22.0 billion). More...
ASX and Bank of China sign major
agreement
MEDIA – 19 November 2014 – ASX and the Bank of China
have signed a heads of agreement to develop the Renminbi
(RMB) as a currency in Australia's financial
markets. The heads of agreement complements the recent appointment
of the Bank of China as the official RMB clearing bank in Australia
by the People's Bank of China. More...
ASIC to scrutinise intra-fund advice
MEDIA – 19 November 2014 – Superannuation funds can
expect a higher level of scrutiny of their intra-fund advice
operations over the coming year, according to ASIC deputy chairman
Peter Kell. The regulator's increased scrutiny of this growing
category of advice would include more onsite visits. More...
Australia-China FTA "opens door" for super,
financial services
SPAA – 18 November 2014 – The Free Trade Agreement
(FTA) with China has the potential to open up this
massive market to Australia's superannuation and financial
services industries, says the SMSF Professionals' Association
of Australia (SPAA) CEO/Managing Director Andrea
Slattery.
More...
Financial Services is now Australia's largest
industry
FSC – 17 November 2014 – These statistics have been
revealed in a new report on the state of the financial services
industry in Australia commissioned by the Financial Services
Council and UBS Global Asset Management – State of the
Industry: Financial Services and SMSFs in Australia.
More...
New agreements will give Australian fund managers direct
access to China
FSC – 17 November 2014 – The China-Australia Free
Trade Agreement (ChAFTA) along with measures to
allow Australian fund managers direct access into China will
significantly boost financial services trade between the two
countries. Combined with the Renminbi Qualified Institutional
Investor (RQFII) scheme, the Free Trade Agreement
delivers a new level of access in the Chinese market for Australian
fund managers.
More...
ASIC paves way for electronic disclosures
MEDIA – 17 November 2014 – Financial services
disclosures could be delivered electronically by default under new
proposals from ASIC. Providers would no longer need clients'
permission to send disclosures to their email addresses. ASIC's
proposal, aimed at cutting red tape and enhancing investor
engagement, is now open for consultation which closes on 16 January
2015.
More...
Advice restrictions "prevent risk
warnings"
MEDIA – 17 November 2014 – Laws preventing insurers
from giving financial advice mean they cannot warn consumers about
underinsurance, the Productivity Commission has heard from Suncorp
Corporate Affairs.
More...
The future of Australia's super: a new framework for
a better system
ASFA paper released at the ASFA 2014 National Conference, November
2014.
More...
APRA releases
Letter to RSE licensees - Publication of superannuation
statistics (27 November 2014).
ASFA Retirement Standard: September 2014
Figures for the December 2014 quarter will be released week
commencing 9 February 2015. The most recent national figures show
that, in general, a couple looking to achieve a comfortable
retirement needs to spend $58,326 a year, while those seeking a
'modest' retirement lifestyle need to spend $33,784 a year.
More...
FOFA changes reversed
The Corporations
Amendment (Streamlining Future of Financial Advice) Regulation
2014 has been disallowed by the Senate. The FOFA changes in the
Regulation will now not be implemented unless the Senate passes the
Corporations Amendment (Streamlining of Future of Financial Advice)
Bill 2014. ASIC has
announced a transitional arrangement until 1 July 2015.
ASIC's latest review of compliance by financial advisers with
FOFA (as it was before the changes) is set out in
Report 407.
Cases
Friar v Brown [2014] FCA 1275
SUPERANNUATION – review of decision of Superannuation
Complaints Tribunal – appellant self-represented –
whether Tribunal should be joined as respondent to proceedings
– whether substituted service permitted. Federal Court
Rules 2011 (Cth) r 10.24; Superannuation (Resolution of
Complaints) Act 1993 (Cth) s 45. More...
Vault Market Pty Ltd [2014] NSWSC 1641
CORPORATIONS – financial services and markets –
financial services providers – carrying on financial services
business without a licence – online market for contracts for
difference – holding out that has a licence when that is not
the case – remedies – restraint on carrying on
financial services business CORPORATIONS – financial services
and markets – market misconduct and other prohibited conduct
– misleading and deceptive conduct CORPORATIONS –
enforcement – declarations – where provisions
contravened are not civil penalty provisions – where public
right to be vindicated CORPORATIONS – management and
administration – duties and liabilities of officers of
corporation – disqualification from managing a corporation.
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.