Australia: Superannuation & Funds Management - What's News - 7 August 2012

Last Updated: 12 August 2012
Most Read Contributor in Australia, September 2016

In the media

Portfolio Disclosure guideline released
02 August 2012 - A working group formed by the Financial Services Council has put together draft guidelines for portfolio disclosure in response to ASIC's call for super funds and managed funds to disclose their investments last year. More...

Regulators aware of reform stress
02 August 2012 - ASIC and APRA are aware of the stress regulatory change has placed on Australia's financial services sector stating the longer it takes for the full release of regulations and guidance, the greater our concern about the ability of the industry to comply with FOFA and Stronger Super by 1 July 2013. A delay in release of regulations and guidance in some areas until 2015 limits the ability of our industry to comply. More...

No role for FWA in choosing default funds
CCSA – 01 August 2012 - The Corporate Super Specialist Alliance has endorsed option 4 of the Productivity Commission's default super fund inquiry, namely that an independent expert panel and not Fair Work Australia should make default fund listing decisions. More...

Super funds required to report contributions
30 July 2012 - Treasury has released draft legislation that will require super funds to report the level of received contributions to members. Changes to the Superannuation Industry (Supervision) Act 1993 (SIS Act) will also enable the Australian Prudential Regulation Authority (APRA) to take action if funds or RSAs do not comply with the new requirements. The proposed Bill requires super funds and retirement savings account (RSA) providers to report to their members on either a quarterly or six-monthly basis. More...

ASIC flags guidance on Stronger Super
27 July 2012 - Depending on the passage of legislation, ASIC will release consultation papers and guidance on disclosure requirements for MySuper aspects, governance reforms, SuperStream changes and self-managed super fund (SMSF) reforms later this year. The exposure draft includes provisions relating to superannuation fees, intra-fund advice and collection and disclosure of fund information. More...

Codes to achieve same outcomes as opt-in
26 July 2012 - Professional codes of conduct that meet approval in terms of obviating the need for financial advisers to comply with opt-in will need to achieve the same outcomes as opt-in, the regulator has confirmed. More...

Poor reference checks hamper industry
26 July 2012 - Ineffective reference checking was a key issue in the financial services industry and an area ASIC intended to work on improving in the next 12 months. The project aims to implement measures to help remove 'bad apples' from the industry and stop advisers, who commonly exhibit bad conduct, moving between licensees. More...

Corporations Legislation Amendment (Derivative Transactions) Bill
TREASURY - On the 25 July 2012 a draft of the Corporations Legislation Amendment (Derivatives Transactions) Bill 2012 was released. The legislation would amend the Corporations Act by introducing a framework to allow the Minister for Financial Services and Superannuation to decide that mandatory obligations should apply to certain classes of over-the-counter (OTC) derivatives, requiring those classes to be reported, centrally cleared, or traded on suitable trading platforms. More...

Aussies to Rely on Asset Sales or an Inheritance to Fund Retirement
ING DIRECT - 24 July 0212 - With just 23% of households confident their super will fund a decent retirement, Australians are pinning their hopes on selling off assets, earning more, and receiving an inheritance to make up the shortfall, according to the latest ING DIRECT Financial Wellbeing Index (24 July 2012). More...

Transfer of Certain State and Territory unclaimed superannuation to the Commonwealth Regulations
TREASURY – 24 July 2012 - The exposure draft for the transfer of State and Territory unclaimed superannuation to the Commonwealth regulations and the accompanying explanatory materials has been released for public consultation. The regulations prescribe eight public sector schemes from the Commonwealth, Victoria, Queensland, and Western Australia. Only those schemes nominated have been prescribed. More...

Fraudsters target DIY super funds
SMH – 21 July 2012 - A financial planner and two advisory groups operating in the self-managed superannuation market have been shut down in the past two weeks, raising concerns about the increasing level of risk trustees of do-it-yourself funds face. More...

Speech to 2012 Citi Pension Executive Summit
Author: David Bushby, Assistant Treasurer David Bradbury

Discusses Strength of the Australian economy; Engagement with Asia; Foreign investment; Superannuation reforms; Increase in the SG rate from 9 per cent to 12 per cent; MySuper; SuperStream; Superannuation Roundtable (11 July 2012). More...

Stronger Super draft bills
Treasury has released Superannuation Legislation Amendment 2 (Stronger Super and Other Measures) 3 Bill (No. 2) 2012:expanded superannuation reporting and Superannuation Legislation Amendment 2 (Stronger Super and Other Measures) 3 Bill (No. 2) 2012: Reporting to members for consultation. The legislation will amend the Income Tax Administration Act 1953 to expand the information required to be reported by superannuation providers in respect of their members. Under the revised reporting obligations, superannuation providers will be required to provide statements for all members who held an interest in the fund at any time during the reporting period, not just those for whom contributions are received (30 July 2012)

Consultation: AFA Code of Conduct
The Association of Financial Advisers (AFA) has released Consultation Paper: AFA Principles of Practice (July 2012) for public comment. According to the AFA, preparation for the introduction of a Code of Conduct is motivated by the provisions of the Corporations Amendment (Future of Financial Advice) Act 2012 No. 67 (Cth), which allows financial advisers to be exempt from opt-in obligations if they sign on to an appropriate industry code. Comments on the consultation paper should be sent to the AFA by 31 August 2012 Further information from the AFA

Minister Acknowledges Timeshare Exemption
Financial Services Minister Bill Shorten and Parliamentary Secretary to the Treasurer Bernie Ripoll have announced that the enactment of recent legislation will exempt the timeshare industry from the application of the ban on conflicted remuneration under the Future of Financial Advice (FOFA) reforms. Referring to the Corporations Amendment Regulation 2012 (No. 4) 2012 No. 170 (Cth), Mr Shorten said that sales-based commissions will still be permitted on timeshare products, and as such were "never the intended focus of FOFA". Joint media release (20 July 2012)

Exposure draft for the transfer of State and Territory unclaimed superannuation to the Commonwealth: Consultation
The regulations and the accompanying explanatory materials has been released for public consultation. These regulations will amend the Superannuation (Unclaimed Money and Lost Members) Regulations 1999. They will allow prescribed public sector superannuation schemes to pay unclaimed superannuation money to the Australian Taxation Office (ATO) (24 July 2012). More...

Helping industry implement Stronger Super
ASIC have announced initiatives to help industry understand their regulatory obligations under the Stronger Super reforms (26 July 2012) Helping industry implement Stronger Super


NGS Super Pty Ltd [2012] FWA 6250
Fair Work Act 2009
Applications to vary modern awards - lack of standing as NGS Super is not within the classes of statutorily defined eligible applicants - applications dismissed. More...

Wilson and Commissioner of Taxation [2012] AATA 452|
TAXATION - Superannuation contributions surcharge - executive officer of South Australian public service - implied constitutional limitation on Commonwealth legislative power - held that Commonwealth legislation validly applied to applicant - decisions under review affirmed.
PRACTICE AND PROCEDURE - Jurisdiction of tribunal to determine issues of constitutional validity - consideration of power to refer question of law to Federal court.
Administrative Appeals Tribunal Act 1975 (Cth), s 45
Commonwealth of Australia Constitution 1900 (Imp) 63 and 64 Vic, c 12
Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Act 1997 (Cth)
Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Imposition Act 1997. More...



[Draft] Superannuation (Unclaimed Money and Lost Members) Amendment Regulation 2012
Commencement - This regulation commences on the day after it is registered and amends Superannuation (Unclaimed Money and Lost Members) Regulations 1999. The exposure draft for the transfer of State and Territory unclaimed superannuation to the Commonwealth regulations and the accompanying explanatory materials has been released for public consultation. Open for consultation and comments on 24/07/2012; Submissions close on 22/08/2012

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