Australia: Superannuation & Funds Management - What's News - 12 February 2014

Last Updated: 13 February 2014

In the media

Sinodinos targets 'union power' in industry funds – MEDIA – 07 February 2014 - Assistant Treasurer Arthur Sinodinos has listed limiting trade union influence on the industry superannuation sector as a top policy priority. More...

SPAA opposes compensation for SMSFs - SPAA - 07 February 2014 - The SMSF Professionals' Association of Australia (SPAA) remains steadfastly opposed to any form of compensation scheme for self managed super funds (SMSFs). The guiding philosophy underpinning self-managed super is that trustees/members take responsibility for their own retirement income outcomes. More...

Australian super regime in good shape – MEDIA – 06 February 2014 - The impact of the Global Financial Crisis has seen pension funds implementing investment strategies that take greater account of extreme economic and market volatility, according to new analysis released by Towers Watson as a result of its latest Global Pension Assets Study. More...

Federal Budget should focus on removing impediments to superannuation investment in infrastructure – ASFA – 05 February 2014 - Removing the impediments that stall superannuation fund investment in infrastructure assets should be a key focus of this year's Federal Budget, according to the Association of Superannuation Funds of Australia (ASFA), which released its pre-Budget submission. More...

FPA calls for removal of contribution age - MEDIA – 05 February 2014 - The FPA has urged the federal government to introduce measures to encourage workforce participation in retirement as a way to address the nation's ageing population challenge. More...

FPA asks for tax-deductible advice – MEDIA – 05 February 2014 - The Financial Planning Association (FPA) has asked the government to implement tax deductibility on financial planning fees. More...

ASIC targets hybrid securities – MEDIA – 05 February 2014 - ASIC has unveiled a range of new education materials for retail investors about hybrid securities, following its promise to crack down on 'complex products' last week. More...

ASFA calls for clarity on retirement income review – ASFA – 06 February 2014 - The Association of Superannuation Funds of Australia (ASFA) has called on the government to provide a clear timetable and terms of reference for its review of retirement income stream regulations, including the tax treatment of deferred lifetime annuities (DLAs). More...

'Crowd-funding' could threaten financial system – MEDIA – 06 February 2014 - 'Crowd-funding' projects that attract investor return need urgent cross-jurisdictional regulation, an international thinktank believes, with nearly half of the ventures defaulting. 'Crowd-funding' could threaten financial system

ASIC updates Hybrid information for investors – ASIC – 04 February 2014 - ASIC has updated information on its consumer finance website, MoneySmart, to help investors understand the risks and complexities of hybrid securities. ASIC's focus on these complex products follow a rise in their popularity, around $18 billion was raised through ASX-listed hybrid securities ASIC updates hybrid information for investors

Appointments to the Future Fund Board – TREASURY – 04 February 2014 - The government has announced the appointments of the Hon Peter Costello AC as Chairman and Mr John Poynton AM as a member of the Future Fund Board of Guardians, effective from 04 February 2014 Appointments to the Future Fund Board

Super tax concessions are important, sustainable and equitable – ASFA – 03 February 2014 - With media outlets reporting today that the tax concessions applied to super will cost the Budget up to $32 billion this year, the Association of Superannuation Funds of Australia (ASFA) is calling for a debate based on accurate information regarding the actual value and context of the concessions. More...

Fatal flaw review period closing soon on draft new Superannuation Standard –AASB - 31 January 2014 - In December 2013, the AASB approved a draft new Standard applying to superannuation entities, which has been published on the AASB website. The making of the Standard is subject only to a fatal flaw review by 28 February 2014. Read more

Delivering a more efficient Government – Superannuation – TREASURY – 31 January 2014 - The Assistant Treasurer announces streamlining the consultation arrangements for superannuation as part of the Government's efficiency reforms. This includes the cessation of three non-statutory bodies that are no longer required: the SuperStream Advisory Council, Superannuation Advisory Committee and the Superannuation. Delivering a more efficient Government – Superannuation

Proper gateway governance a crucial step for SuperStream implementation – ASFA- 31 January 2014 - Following the Assistant Treasurer's announcement that the Government is streamlining the consultation arrangements for superannuation, the Association of Superannuation Funds of Australia (ASFA) is calling on the Government to urgently review the governance arrangements for the SuperStream transaction network. More...

ISA welcomes APRA moves to increase transparency of super costs – ISA – 31 January 2014 - APRA should be able to provide more detailed reporting on the investments, costs and fees of Australian superfunds for the betterment of consumers, Industry Super Australia (ISA) said today. More...

APRA - Publication and confidentiality of superannuation statistics and data - AIST – 31 January 2014 APRA's discussion paper details the reasoning behind their proposed publication of statistics, with documented reasoning behind what is considered to be confidential, and non-confidential. AIST's submission generally supports the proposals made in this paper, and have made a small number of very minor recommendations. Read more

Treasury releases Investment Manager Regime - Element 3 - Exposure Draft Three – TREASURY - 31 January 2014 - A further exposure draft for the third and final element of the Investment Manager Regime ("IMR") has been released. This exposure draft follows industry consultation, including submissions received on earlier exposure drafts. More...

ASIC releases report on regulating complex products – ASIC – 31 January 2014 - With financial products and markets continually growing in complexity, ASIC has reviewed its approach to regulating complex products, with the release of Report 384 Regulating complex products (REP 384) about its review. ASIC releases report on regulating complex products

ASIC reports on decisions to cut red tape for June to September 2013 – MEDIA – 28 January 2014 - ASIC have released our latest report outlining decisions on relief applications covering the period 1 June to 30 September 2013. ASIC reports on decisions to cut red tape – June to September 2013

ASIC refuses FOFA 'no action' letters – MEDIA – 29 January 2014 - The corporate regulator rebuffed a number of requests for 'no action' letters in relation to the FOFA regime in the latter half of 2013, according to a new ASIC report. The report reveals the regulator's decision to deny an advice group's request for relief around the grandfathering of conflicted remuneration payments under FOFA. More...

Government must recycle brownfield infra: FSC – MEDIA – 28 January 2014 - The Financial Services Council (FSC) has urged federal and state governments to adopt the capital recycling model for infrastructure development to attract superannuation investment, stating super funds were ready to invest in existing (brownfield) infrastructure, and that governments should sell off assets to fund new (greenfield) infrastructure projects. More...

Superannuation investment in infrastructure – Steps to further efficiency – Ernest & Young – 28 January 2014 - This research report prepared for the Financial Services Council by EY has cited the lack of suitable infrastructure projects as a significant barrier for investment in infrastructure by superannuation funds. The review confirmed the barriers to greater investment by super funds in infrastructure identified in 2011 remain today. More...

Future of financial advice (FOFA) amendments released for public consultation – TREASURY – 29 January 2014

The Government is progressing reforms to deliver affordable and accessible financial advice. The Assistant Treasurer announced that the Government has released for public consultation draft regulations and legislation to enact its announced reforms to FOFA, with submissions due in 3 weeks. More...

Industry welcomes FOFA amendment draft– MEDIA – 30 January 2014 - Financial services industry stakeholders have begun preparing for three weeks of consultation, following the release of draft regulations amending the FOFA legislation, to submit formal responses to the new Corporations Amendment (Streamlining of Future of Financial Advice) Bill 2014 outlining the government's proposed amendments to FOFA. More...

Proposed FoFA reforms will benefit consumers– IFS – 29 January 2014 - Consumers will benefit from the proposed reforms to the Future of Financial Advice legislation announced by the Assistant Treasurer. The CEO of the FSC said clarification on the Best Interest Duty is a positive proposal which will reduce the cost of financial advice in many instances without reducing the protections built into the reforms to protect consumers. More...

Government urged to assess impact of financial advice changes on consumers and national savings – ISA – 29 January 2014 - Industry Super Australia (ISA) is today urging a thorough assessment of the impact of proposed changes to laws designed to protect consumers from conflicted financial advice. ISA urges the Government to fully assess the impact on consumers and of any proposed changes as part of the due diligence. More...

ASFA welcomes draft FoFA legislation – ASFA – 29 January 2014 – ASFA is pleased that the draft Future of Financial Advice (FoFA) legislation, released by the Government today, does not change the definition of intra-fund advice. The ability to deliver intra-fund advice in its current form enables all superannuation funds to provide real help to fund members regarding their interest in the fun. More...

Published – articles, papers, reports

Chronology of major superannuation and retirement income changes in Australia
Author: Parliamentary Library 036R1024
Parliamentary Library Research Report: Chronology of major superannuation and retirement income changes in Australia, 5 February 2014. Download PDF

ASIC enforcement report - July to December 2013
Author: ASIC
ASIC achieved 340 enforcement outcomes. This included criminal as well as civil and administrative (e.g. a banning or disqualification) actions, and negotiated outcomes, including enforceable undertakings (EU). There were 112 outcomes achieved in the market integrity, corporate governance and financial services areas, and 228 in the small business area. (31 January 2014) ASIC enforcement report – July to December 2013

RBA Chart Pack - Graphs on the Australian Economy and Financial Markets
Author: Reserve Bank of Australia
The sets of graphs below summarise macroeconomic and financial market trends in Australia and provide some information about developments for our main trading partners (05 February 2014). More...

AIST submission: ASIC CP 219 Keeping superannuation websites up to date
This consultation paper from ASIC outlines options for the new requirements of section 29QB of the SIS Act for ensuring that fund websites are kept up to date, including remuneration and proxy voting disclosure (03 February 2014) Read more

AIST submission: Exposure draft - Increases to the Lost Member Small Account Threshold
This exposure draft contains amendments that effect the Government changes to the small lost member account threshold, to $5,000 from 31 December 2015, and to $6,000 from 31 December 2015 (03 February 2014). Read more

ATO: Draft Taxation Ruling TR 2013_D7: AIST submission
This draft ruling considers apportionment, for the purposes of section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997), of a loss or outgoing incurred by a superannuation entity partly in gaining or producing its assessable income and partly in gaining or producing non-assessable income (29 January 2014). Read more

ASFA Submissions
ASFA pre-Budget submission for the 2014-15 Budget – 05 February 2014
Submission to AUSTRAC: Draft Amendments to the AML/CTF Rules relating to Customer Due Diligence – 24 January 2014.

APRA: consultation on proposed Modification Declaration - SIS Regulations 1994, r07E(8) APRA has received enquiries regarding the operation of r. 4.07E which governs the continuation of self-insured benefits in defined benefit (DB) funds and sub-funds after 1 July 2013 (05 February 2014). More...



Accounting Standard AASB 1031 Materiality
This accounting standard makes cross-references to other Australian Accounting Standards and the Framework for the Preparation and Presentation of Financial Statements that contain guidance on materiality. General Comments: When applied or operative, this Standard supersedes AASB 1031 Materiality (July 2004, as amended) (Registered 06 February 2014). More...

Anti-Money Laundering and Counter-Terrorism Financing Rules Amendment Instrument 2014 (No. 2)
This Instrument amends the Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 (No. 1) by inserting a new exemption in relation to reporting entities which issue new interests in registered managed investment schemes, and updating the definitions in the chapter. (Registered 30 January 2014). More...

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