In a statement, the Australian Council of Superannuation
Investors (ACSI) strongly urged for the sacking of News Corp board
members James Murdoch, Lachlan Murdoch, Natalie Bancroft, David De
Voe, Andrew Knight and Arthur Siskind
More...
The High Court has affirmed that employers can be charged for
not providing the right level of superannuation to employees,
rejecting an argument by market research firm Roy Morgan Research
that the superannuation guarantee charge was unconstitutional
More...
The federal government yesterday officially declared an end to
the payment of commissions on superannuation, releasing its second
discussion paper on the Future of Financial Advice with the ban as
the central message
More...
Handing regulator APRA tougher prudential powers over
superannuation looks set to add to compliance costs in the short
term, according to sources, according to the Association of
Superannuation Funds of Australia's chief executive
More...
Superannuation funds will be required to follow stricter
Governance arrangements under proposed new standards released by
the Australian Prudential Regulation Authority (APRA), but they
will still fall short on many of the obligations imposed on the
boards of publicly-listed companies
More...
In response to the Future of Financial Advice (FOFA) reforms
announced, the Financial Planning Association (FPA) and the
Industry Super Network (ISN) have come out in support of the
release and its push for a more professional industry, although
there were small differences in their stance More...
Superannuation industry funds' claims
disputed
27 September 2011
Research from the union-affiliated industry funds claims
dramatically better performance than the retail master trusts ,
claiming that the average return from June 1996 to June 2010 was
5.35 per cent per annum for industry funds and only 3.66 per cent
for retail funds
More...
Challenge to Superannuation Guarantee Charge Fails in
High Court
28 September 2011
The High Court of Australia today confirmed the Superannuation
Guarantee Charge Act (SGCA) and the Superannuation Guarantee
Administration Act (SCAA) are valid under Australia's
Constitution in the case Roy Morgan Research Pty Ltd v Commissioner
of Taxation ()
More...
Superannuation trustee board structure needs new
framework
26 September 2011
The controversy which continues to surround MTAA Super, and issues
such as so-called "liquidity providers" within
superannuation funds,have combined with the actions of the
Australian Prudential Regulation Authority to turn a spotlight on
the superannuation industry as a whole
More...
Govt announces new online superannuation
form
26 September 2011
The Government has announced a new electronic form to connect
superannuation members with 5.8 million lost super accounts. The
Government has released draft legislation allowing the ATO to
administer the electronic portability form for public consultation.
The draft legislation is available on the Treasury website and
consultations will close on 13 October 2011
More...
Superannuation fund boards should be more
transparent
22 September 2011
Superannuation funds should be subject to the same corporate
governance requirements as publicly listed companies. The
Association of Superannuation Funds of Australia (ASFA) policy
general manager said an appropriate outcome could be achieved by
making suitable changes to the rules
More...
ASIC obtains Fed Court order to preserve
funds
22 September 2011
ASIC sought to restrict both parties from moving any invested cash
within the fund after it found that neither the firm nor Travers
held an Australian financial services (AFS) licence, after offering
investment opportunities in contracts for difference, spread
betting and foreign exchange markets
More...
APRA accepts enforceable undertaking from former Trio
director
19 September 2011
APRA announces it has accepted an enforceable undertaking from
former Trio Capital Limited (Trio) director for failing to carry
out his duties properly as a director of a superannuation trustee
More...
Self Managed Superannuation Fund Auditors Draft
Regulations
21 September 2011
The Assistant Treasurer and Minister for Financial Services and
Superannuation has
released draft Regulations that extend the
audit period when the audit report cannot be provided on time due
to certain circumstances beyond the auditor's control. The
proposed changes will ensure SMSF auditors are not penalised
unfairly when external factors cause delays in the completion of
the audit report
More...
Law to make directors personally liable for
employees' superannuation
14 October 2011
Australian company directors will become personally liable for
unpaid superannuation guarantee liabilities to their workers under
legislation introduced to parliament, in what the minister
described as a crackdown on "phoenix" companies
More...
FOFA reaches parliament with undisclosed
feature
14 October 2011
Minister for Financial Services and Superannuation, Bill Shorten,
yesterday introduced the Future of Financial Advice Bill (the FOFA
Bill) with the addition of a new feature of a retrospective
disclosure statement, which will require fee disclosure statements
for all existing clients
More...
ASIC accepts enforceable undertaking from
Opus
13 October 2011
The Australian Securities and Investments Commission (ASIC) has
accepted an enforceable undertaking (EU) from Opus Capital, a
responsible entity for 14 unlisted property funds. The EU follows
the rectification of a breach of a condition of its Australian
Financial Services (AFS) licence, ASIC stated
More...
Protecting Employee Super and Strengthening the
Obligations of Company Directors
13 October 2011
The Gillard Government introduces tax legislation designed to
protect workers' superannuation and deter fraudulent
'phoenix company' activity. The package protects
employees' entitlements through three strong measures: The Fair
Entitlements Guarantee; Securing Super; and Strengthening Corporate
and Taxation Law
More...
Superannuation scheme must change its ways
12 October 2011
Retirees should be forced to take income streams from their
superannuation benefits rather than cash in big lump sums, a new
study by the Australian Centre for Financial Studies and
consultants Mercer recommends. The unveiled a report shows that
despite Australia's top-ranking scheme for retirees, the nation
still lagged behind world's best practice
More...
ATO clarifies SMSF borrowing
12 October 2011
In the recently released draft self managed superannuation funds
(SMSF) ruling SMSFR 2011/D1, the Australian Taxation Office (ATO)
has provided welcome clarification on a number of key issues
relating to limited recourse borrowing arrangements (LRBAs)
More...
Commonwealth Superannuation Corporation appoints
Northern Trust as custodian
11 October 2011
The recently formed $24 billion Commonwealth Superannuation
Corporation (CSC) has named Northern Trust as its custodian,
effective from early 2012. CSC was established on 1 July 2011 after
the merger of the Australian Reward Investment Alliance and
Military boards, and the Defence Force Retirement and Death
Benefits Authority
More...
ATO still vigilant on illegal early release
schemes
10 October 2011
The Australian Taxation Office (ATO) has reinforced its intention
to crack down on illegal early release superannuation schemes and
has warned of the significant tax implications for those involved.
ATO assistant commissioner, superannuation, Stuart Forsyth said
that this year the ATO would be auditing about 40 promoters and 300
participants
More...
Executive pay: the high cost of market
failure
10 October 2011
The Australian Council of Super Investors (ACSI), the body which
represents industry super funds, marked its ten-year anniversary
last month with a ten-year study on executive pay. It found the
decade to 2010 saw median CEO fixed pay in the Top 100 ASX
Australian companies rise 131 per cent and the median bonus
increase 190 percent
More...
Tax status of insurance in super clearer
07 October 2011
New income tax rules handed down have clarified the tax
deductibility of insurance premiums for risk cover taken inside a
superannuation fund. The regulations prescribe the percentage of
premiums which are deductible in some typical insurance
arrangements
More...
Standard & Poor's (S&P) denies misleading
councils
07 October 2011
The international credit ratings agency, has denied misleading NSW
councils who are claiming more than $15 million in losses from a
failed investment which was given a top ranking
More...
Director pleads guilty to dishonest conduct
06 October 2011
A former Financial Partners director has pleaded guilty to nine
charges of dishonest conduct involving $1.8 million of investor
funds. At the time of the alleged conduct, none of his companies
held an Australian financial services licence (Financial Partners
PL, Venture Capital Management PL and Biotech Solutions PL.)
More...
Shorten undecided on draft guidelines
04 October 2011
The federal government is yet to make a decision on how it will
resolve concerns over the lack of specific guidelines provided for
at least two key elements of its industry reforms - the ruling
behind the best-interest duty and ASIC's increased powers
More...
Articles
Managed Investment Schemes: Discussion Paper Comments
2011
September 2011
Chartered Secretaries Australia (CSA) CSA's comments in the
view that the current consultation is an opportunity for CAMAC to
also report on the need for good governance and risk management
frameworks to be implemented in MIS
More...
Practice Notes
APRA superannuation prudential standards paper for
discussion
28 September 2011
APRA has released for consultation a
discussion paper Prudential standards for
superannuation introducing its proposals for prudential
standards for the superannuation industry. The paper outlines the
key requirements APRA expects to include in each standard. APRA
expects to commence the authorisation process in the second half of
2012 for RSE licensees wishing to offer MySuper products
New online super tracking portal form
After locating any lost super through SuperSeeker, members can
pre-fill a transfer request and submit it electronically to the
ATO, who will then verify the identity of the lost member, match it
to the recorded account and verify the status of the nominated
receiving fund. The online form is open for public consultation
until October 2011.The draft legislation is available on the Treasury website.
Exposure Draft - Electronic Portability Form for Lost
Superannuation
Stronger Super reforms information pack
released
20 September 2011
The Assistant Treasurer has released an
Information Pack containing further details of the Stronger
Super Reforms. Legislation is planned to be introduced in several
tranches, over the coming months and in the first half of
2012.
Use of ASIC logo by licence holders prohibited
ASIC has published a reminder for licensees, and others, that they
cannot use the ASIC logo or name to promote their businesses.
Read the detailed statement from Commissioner Dr Peter
Boxall
ASFA launches online superannuation CPD
package
11 October 2011
The Association of Superannuation Funds of Australia (ASFA) has
launched a continuing professional development product (CPD) for
the superannuation industry called SuperCPD. SuperCPD is about not
only keeping up-to-date, but developing yourself for your next role
and maintaining your RG 146 compliance
More...
Legislation
Commonwealth
Personal Property Securities Amendment (Registration
Commencement) Bill 2011
13 October 2011
The Personal Property Securities legislation will rationalise the
current Commonwealth, State and Territory laws on securities in
personal property. It will create one single national set of rules
and a single national online register. There will be one
comprehensive law with clear rules governing the validity,
priorities, enforcement and extinguishment of security interests in
all personal property.
More...
Cases
Roy Morgan Research Pty Ltd v Commissioner of Taxation
[2011] HCA 35
Constitutional law (Cth) – Taxation – s
51(ii) – Superannuation guarantee charge imposed upon
employers who fail to provide to employees a prescribed level of
superannuation – Charge debt due to Commonwealth and paid
into Consolidated Revenue Fund for benefit of employees –
Whether law imposing charge not a law with respect to taxation
because charge is not imposed for "public purposes", and
because it confers a "private and direct benefit" on
employees of those employers who pay charge.
More...Rusterholz v Board of Trustees of the State Public
Sector Superannuation Scheme [2011] QSC 276
INSURANCE AND INCOME SECURITY – SUPERANNUATION
– REGULATED AND COMPLYING SUPERANNUATION FUNDS
– MINIMUM BENEFIT AND MEMBER PROTECTION STANDARDS
– Where the respondent administers the superannuation
scheme for State public sector employees – Where the
applicant was a non-contributing member – Where the
applicant seeks declaration of an entitlement for total permanent
disablement – Where the applicant did not disclose a
pre-existing medical condition – Where the respondent
board determined that the applicant was not entitled to total
permanent disablement benefit under the scheme – Where
competing interpretations of the meaning of the section relevant to
the entitlement of the applicant advanced – Where the
applicant challenged the decision of the Board on the basis that it
failed to properly inform itself of matters relevant to the
decision to deny the applicant relief – Where the
respondent contended that the applicant should have completed a
personal medical statement upon becoming a contributing member of
the scheme and should have disclosed the pre-existing injuries
–Whether the applicant was entitled as a non-contributing
member who had not lodged a truthful medical statement when joining
the defined benefit scheme to benefit under the scheme –
Whether the applicant is entitled to declaratory relief
More...National Australia Bank Ltd & Anor v Horne &
Anor [2011] VSCA 280
CORPORATIONS – Voluntary administration –
Defect in appointment of administrators by secured creditor
– Whether the court has power to validate the appointment
under s 447A of the Corporations Act 2001 (Cth) – Whether
a proper exercise of discretion – Corporations Act 2001
(Cth) ss 435A, 436A, 436C, and 447A.
More...Olesen v Parker [2011] FCA 1096
SUPERANNUATION – Superannuation Industry
(Supervision) Act 1993 (Cth) ss 62(1), 82, 83(2), 84(1), 109(1A),
196(4), 221, 323 – regulated superannuation fund
– self-managed superannuation fund - in-house assets
– related party – Part 8 associate –
seriousness of contraventions – acted honestly
– ought fairly to be excused – reasonable
mistake – reasonable reliance on information supplied by
another person – monetary penalty
More...In the matter of Centro Retail Limited and Centro MCS
Manager Limited in its capacity as Responsible Entity of Centro
Retail Trust [2011] NSWSC 1175
CORPORATIONS - managed investment schemes - modification of
constitution of registered scheme under s 601GC(1) - whether in the
particular case the responsible entity may effect modification
under s 601GC(1)(b) - meaning of "members' rights" -
whether members have a "right" to see new units issued
for the price stated in the existing constitution and not otherwise
unless some different basis is added by special resolution of
members - held that "members' rights" do not extend
to a "right" to have the scheme administered according to
the existing constitution and not otherwise - "members'
rights" to be construed by analogy with company law - need
nevertheless for the responsible entity, as a trustee, to act for
the benefit of beneficiaries - the possibility of dilution of
existing members is a matter to be taken into account in assessing
benefit to beneficiaries
More...The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
