Australia: Superannuation & Funds Management - What's News - 2 October 2013

Last Updated: 8 October 2013

In the media

Abbott sticks to his promise on SMSF regulation
MEDIA – 27 September 2013 - Prime Minister Tony Abbott has made clear that he isn't planning to make changes to the self-managed super fund (SMSF) sector even after the Reserve Bank of Australia (RBA) red flagged DIY investors' property exposure. More...

APRA releases conglomerate reporting standards
APRA – 27 September 2013 - Conglomerate groups will have new capital adequacy standards under draft reporting requirements from the APRA. The Supervision of conglomerate groups Proposed Level 3 reporting requirements discussion paper outlines proposed reporting rules that conglomerates or "Level 3" groups will need to comply with by 1 January 2015. More...

Reporting requires internal restructuring, says CCH
MEDIA – 26 September 2013 - Although many super fund boards have been spooked by transformation projects that have failed, increased reporting obligations to APRA require a degree of internal restructuring and a review of third party providers to be effective, according to director, CCH corporate reporting services. More...

ACSI appoints Future Fund executive as new chief
MEDIA – 26 September 2013 - The Australian Council of Superannuation Investors (ACSI) has appointed senior Future Fund executive Gordon Hagart to replace chief executive Ann Byrne who will retire from the role in October. More...

RBA red flags SMSF property exposure
MEDIA – 26 September 2013 - The Reserve Bank of Australia (RBA) has joined the string of organisations that are concerned about self-managed superannuation fund (SMSF) exposure to property. In a Financial Stability Review, the RBA noted that changes to superannuation legislation have made direct property investment more appealing and more accessible to SMSF. More...

CSSA appeals to financial services ministry
MEDIA – 25 September 2013 - The Corporate Super Specialist Alliance (CSSA) has called on the new ministers responsible for financial services to help ensure the survival of the corporate super sector of the financial advice market, following ASIC's decision to decline a request for a 'no action letter'. More...

IPA rejects minimum SMSF balances
MEDIA – 25 September 2013 - The Institute of Public Accountants has echoed industry concerns about the possibility of ASIC imposing minimum account balances requirements on self-managed superannuation funds (SMSFs). More...

Super assets to hit $7.6 trillion by 2033
MEDIA – 24 September 2013 - Australia's superannuation asset pool is projected to reach $7.6 trillion in the next 20 years, equating to 180 per cent of GDP, according to new research from Deloitte. More...

Draw up draft privacy guidelines now, says ASFA
MEDIA – 24 September 2013 - The Association of Superannuation Funds of Australia (ASFA) has called on the Office of the Australian Information Commissioner to hurry up and finalise Australian Privacy Principle draft guidelines (24 September 2013). More...

Audit and related matters for super funds get a closer look
CSA – 24 September 2013 - APRA has announced a focused consultation on the Prudential Practice Guide SPG310 Audit and Related Matters (the audit PPG) for superannuation entities following a delay in finalising the accompanying prudential standard on audit and related matters (the audit prudential standard). More...

MySuper's reporting focus drives wrong outcomesMEDIA – 23 September 2013 - MySuper's reporting requirements mean the initiative is failing to support an outcome-focused approach for superannuation fund members, according to delegates at the Financial Services Institute of Australasia (Finsia) conference last week. More...

ASIC, "twin peaks" model faces review
MEDIA – 23 September 2013 - Evidence that it took at least 16 months for ASIC to act on whistleblowers' information about misconduct within the Financial Planning division of Commonwealth Bank became a turning point in the long-running debate around the effectiveness of the current regulatory model for the financial services industry. More...

Financial Advisers urged to recommend Industry Super Funds based on long term net returns
ISN – 19 September 2013 - Industry Super Network is urging financial advisers to pay greater attention to the long term net performance of super funds when making recommendations to clients. Industry super funds have again outperformed retail master trust funds over all periods, according to ratings agency SuperRatings. More...

ACCC gives Perpetual the green light
MEDIA – 19 September 2013 - The Australian Competition and Consumer Commission (ACCC) has announced it will not oppose Perpetual's move to acquire The Trust Company (19 September 2013). More...

Accountants shun limited licence
MEDIA – 19 September 2013 - Just 19 licence applications have been received from an industry of around 180,000 practitioners in the first three months since the initiative's launch. This is despite the industry having more than a year's notice that the self-managed super fund (SMSF) exemption would be phased out. More...

ASFA calls for mandatory licensing for SMSFs
MEDIA – 18 September 2013 - Following Monday's release of proposed new disclosure rules for SMSFs, the Association of Superannuation Funds of Australia (ASFA) says now is the time to up licensing requirements for other service providers dealing in the SMSF sector. More...

SMSF balance concerns overlook purpose of funds
MEDIA – 18 September 2013 - Concerns around the number of self-managed superannuation funds (SMSFs) with low balances is "a storm in a teacup" and overlooks the long-term nature for which the funds have been created, according to a planner and director of the Small Independent Superannuation Funds Association (SISFA). More...

Abbott cabinet adopts different approach to financial services
MEDIA – 17 September 2013 - The Prime Minister, Tony Abbott, has returned to a more conventional portfolio set-up for financial services and superannuation, with the appointment of an Assistant Treasurer and Parliamentary Secretary under the Treasurer, Joe Hockey. More...

Super fee disclosure needs improvement
MEDIA – 17 September 2013 -Although almost three quarters of Australians know their superannuation balance, half are not aware of the fees they pay, according to a new report from the Financial Services Council and ING Direct. More...

Focus sharpens on remuneration of superannuation fund directors
CSA – 16 September 2013 - The remuneration of directors and trustees of superannuation entities has taken centre-stage following the passing of measures modelled on the framework for disclosure for companies in the Corporations Act 2001 (16 September 2013). More...

Costs of operating SMSFs
Report prepared by Rice Warner Actuaries for ASIC

ASIC commissioned Rice Warner to examine the minimum cost-effective balance for SMSFs when compared with super funds regulated by APRA. Rice Warner's report also looks at the appropriate level of resources consumers should have before setting up an SMSF (released September 2013).

Rice Warner's report: Costs of Operating SMSFs

Reporting framework for Superannuation Frequently Asked Questions
APRA, 16 September 2013

APRA has published ten new FAQs about the reporting framework for superannuation. More...

The regulator's perspective on the regulation of SMSFs
Speech by Greg Tanzer, Commissioner, ASIC

Speech by the Australian Securities and Investments Commission to the Institute of Chartered Accountants Australia (ICAA) National SMSF Conference 2013, 17 September 2013.

The regulator's perspective on the regulation of SMSFs

APRA: draft Prudential Practice Guide for Superannuation Prudential Standard SPS 310 "Audit and Related Matters"
This guide sets out APRA's requirements in relation to the audit for an RSE licensee's business operations. This PPG aims to assist an RSE licensee in complying with those requirements and, more generally, to outline prudent practices in relation to audit arrangements (20 September 2013)


APRA: RSE Licensees on SRS 702.0
APRA has released a letter to RSE Licensees setting out an extended timeframe for the first submission of the superannuation reporting submissions until November 11 2013.

APRA letter to industry – Extended due date for first quarterly submission of SRS 702.0 (23 September 2013)

ASIC review: quality of advice to SMSFs and costs
ASIC has released Consultation Paper 216 Advice on self-managed superannuation funds: Specific disclosure requirements and SMSF costs ( CP 216) containing ASIC's proposals to impose specific disclosure obligations on advisers. CP 216 also looks at the appropriate level of resources consumers should have before setting up an SMSF.

New Financial Services Ministers
Mr Abbott has named his new Ministry and and Parliamentary Secretaries. Whilst there is no specific Financial Services Minister, decisions in respect of financial services are expected to be made by the Treasurer Joe Hockey, the Assistant Treasurer Arthur Sinadinos and the Parliamentary Secretary to the Treasurer Steven Ciobo. The Attorney-General George Brandis will be responsible for privacy-related issues.

Forthcoming Events

Superannuation Insurance Symposium 2013
AIST's Super Insurance Symposium (SIS) will cover the important issues in relevant to group insurance, case law, insurance design and regulator updates to provide superannuation personnel the most current information and case studies to improve their internal insurance practices. Date: 23 October 2013


Fund Governance Symposium 2013
The FGS will cover the crucial issues in fund governance and works to place trustee directors and senior superannuation personnel in the best position to review and refine current governance practices and frameworks. Date: 22 October 2013


ASFA 2013 Conference

The ASFA 2013 National Confernce and Super EXPO will be held at the Perth Convention and Exhibition Centre. Date: 13-15 November 2013



Kristoffersen v Superannuation Complaints Tribunal [2013] FCA 951
SUPERANNUATION – superannuation funds – private sector superannuation scheme – decisions of board of trustees of superannuation scheme and its insurer refusing claim for benefit – appellant sought review of decisions by Superannuation Complaints Tribunal (the Tribunal) which affirmed decisions – appeal against that decision of the Tribunal – whether Tribunal discharged its function by determining whether decision under review was "fair and reasonable" in its operation in relation to the appellant – Superannuation (Resolution of Complaints) Act 1993 (Cth) ss 36, 37, 46, 47; Held: Appeal dismissed Administrative Appeals Tribunal Act 1975 (Cth).




Anti-Money Laundering and Counter-Terrorism Financing Rules Amendment Instrument 2013 (No. 2)

This instrument amends the Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 (No. 1) to repeal and insert Chapter 11 and Chapter 38 and amend Chapter 56. Registered 23 September 2013. Date of Ceasing 25 September 2013.


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