Australia: Superannuation & Funds Management - What's News - 8 April 2014

In the media

Super "ideal partner" for infrastructure
MEDIA – 06 April 2014 – Superannuation funds could become the key source of the capital raising needed to drive productivity and economic growth if the sector's assets outstrip those of the banking sector in the next decade or so. More...

FSC calls for statute of limitations
MEDIA – 04 April 2014 – The recent claims experience in the group insurance market and consequent premium rises have prompted the Financial Services Council (FSC) to call for a statute of limitations on disability claims. More...

Super system regulation needs review: ASFA
MEDIA – 03 April 2014 – The Association of Superannuation Funds of Australia (ASFA) has called for a regulatory framework review of the superannuation system and any barriers to long-term diversified investing. More...

RBA questions super fund infra investment
MEDIA – 03 April 2014 – The Reserve Bank of Australia (RBA) has questioned the role of superannuation funds boosting funding for infrastructure investment, saying that it is not appropriate to mandate funds to invest in assets to meet "broader national objectives". More...

AIST calls for better regulatory co-ordination
MEDIA – 03 April 2014 – AIST has argued the government should extend the coordinating role of the Council of Financial Regulators (CFR) to include ASIC, APRA and the ATO, and introduce an "over-arching body to actively coordinate the role of the three superannuation regulators as well as other regulators in the financial sector". More...

Superannuation made simpler for small business
TREASURY – 01 April 2014 – Another piece of red-tape has been cut for small business, with the ATO taking over responsibility for the Small Business Superannuation Clearing House. Small businesses already contact the ATO regularly, so it makes sense that they can speak to the ATO about super payments at the same time instead of another department. More...

SCT chides super funds on complaints
MEDIA – 01 April 2014 – Super funds must address complaints from their members before the Superannuation Complaints Tribunal (SCT) gets involved, says SCT Chair, Jocelyn Furlan. Currently, new complaints received are allocated for investigation around a month after jurisdiction has been established. More...

ASIC to consider complaints about ISA's "Compare the Pair"
MEDIA – 01 April 2014 – ASIC will consider complaints about the new Industry Super Association (ISA) "Compare the Pair" campaign, over concerns that they are "misleading". The regulator is specifically looking at whether or not the campaign "provides a fair representation or conveys a misleading impression". More...

AIST recommends improved financial system regulation and policy alignment
AIST – 01 April 2014 – AIST has recommended an enhanced role for the Council of Financial Regulators (CFR) to co-ordinate the delivery of effective regulation and an aligned superannuation policy agenda with a long-term focus. More...

ASFA's submission to the Financial System Inquiry
ASFA – 01 April 2014 – The superannuation system must operate under frameworks that drive good retirement outcomes and prudent investment strategies, according to the Association of Superannuation Funds of Australia (ASFA) submission to the Financial System Inquiry. More...

ASIC planning FOFA enforcement
MEDIA - 31 March 2014 – ASIC is currently considering a "range of matters" for enforcement including "some that involve potential breaches of the new FOFA laws". Despite the regulator's publicly announced 12-month "facilitative" approach to FOFA (set to end on 1 July 2014) it is still enforcing the law when there are "egregious" breaches that involve harm to consumers. More...

Asset recycling model will help super funds invest in nation-building projects
ASFA – 28 March 2014 –ASFA has welcomed the Treasurer's announcement that the state treasurers are open to an incentivised capital recycling model to help meet Australia's infrastructure needs. Providing incentives to the states to recycle their infrastructure capital will help deliver a pipeline of projects which are a better fit for many superannuation fund portfolios. More...

High cost of involuntary retirement – a major economic and social issue that can't be ignored
AIST – 25 March 2014 – A more flexible approach to retirement may be needed to account for the significant minority of older. According to a research report commissioned by AIST and prepared by the Australian Centre for Financial Studies (ACFS), up to 40% of older Australians could be classified as involuntary retirees. More...

ASIC warns on super fee clarity
MEDIA – 27 March 2014 – The Australian Securities and Investments Commission (ASIC) has told superannuation fund trustees and executives that members want greater clarity with respect to whether the fees they are paying are high, low or average. More...

APRA refines super reporting standards
MEDIA – 26 March 2014 – The Australian Prudential Regulation Authority (APRA) has revised six of its superannuation reporting standards after complaints of confusion from key stakeholders. More...

Money laundering on the rise: DPP
MEDIA – 25 March 2014 – Australian cases of money laundering are increasing, according to the Commonwealth Director of Public Prosecutions (DPP). DPP Robert Bromwich SC said money laundering is one area that has seen "a lot of growth" and is a crime that has regulatory issues which "cut across into ASIC and the ACCC". More...

Code of ethics for AIST members
MEDIA – 25 March 2014 – Amid the Government's push on superannuation governance arrangements, AIST has produced a code of conduct and ethics. More...

Financial System Inquiry: Appointment of International Advisory Panel
TREASURY – 24 March 2014 – The appointment of four internationally eminent business people to an advisory panel to support the Financial System Inquiry, have been announced. The International Advisory Panel will provide an expert perspective to the Financial System Inquiry on aspects of the Terms of Reference. More...

ASIC and APRA clarify MySuper approach
MEDIA – 24 March 2014 – ASIC and APRA jointly clarify the need for consistent information on MySuper products, and have acknowledged some duplication in the reporting required of superannuation funds in the context of the comparability of MySuper products under Section 29QC of the Superannuation Industry (Supervision) Act (SIS Act). More...

FOFA amendments tabled
MEDIA – 20 March 2014 – The government has tabled its amendments to the FOFA legislation, with varying degrees of support from the financial services industry. The Corporations Amendment (Streamlining of Future of Financial Advice) Bill 2014 was introduced in parliament by the parliamentary secretary to the Treasurer. More...

Government limits general advice exemption in FOFA amendments
MEDIA – 20 March 2014 – The Future of Financial Advice (FOFA) amendments bill that was introduced into the Parliament yesterday has limited the general advice exemption, but does not explicitly forbid commissions. The Corporations Amendment (Streamlining of FOFA) Bill 2014 did address the issue of conflicted remuneration in general advice. More...

Independent ratings continue to show industry super funds best option for default
ISA – 20 March 2014 – The latest independent rating of superannuation fund performance has found the industry super funds sector has again outperformed the retail superannuation fund sector, typically owned by banks, over both the short and long term. More...

Government acknowledges FPA concerns on general advice as consumer risks eased by "employee only" rule FPA
MEDIA – 20 March 2014 – The Financial Planning Association of Australia (FPA) has welcomed the Government's amended restrictions to the general advice exemption under FOFA. More...

APRA: Submission to the 2014 Financial System Inquiry
APRA – 04 April 2014 – APRA has released its submission to the 2014 Financial System Inquiry (Murray Inquiry). More...

ASX Corporate Governance Council Principles and Recommendations, 3rd edition, 2014
ASX – 27 March 2014 – The ASX Corporate Governance Council (Council) final form of the 3rd edition of its Corporate Governance Principles and Recommendations (Principles and Recommendations) takes effect for a listed entity's first full financial year commencing on or after 1 July 2014. More...

Consultation: Sustaining the Superannuation Contribution Concession – Division 293 Tax
TREASURY – 25 March 2014 – The Government has released for public consultation an exposure draft for Tax and Superannuation Laws Amendment (2014 Measures No. 2) Regulation 2014: Calculating defined benefit contributions – final arrangements from 1 July 2013 and the accompanying explanatory material. More...

Privacy Amendment (External Dispute Resolution Scheme – Transitional) Regulation 2014 – Legislative Instrument
This provides a temporary 12 month exemption from 12 March 2014 from the external dispute resolution scheme membership requirement under the Privacy Amendment (Enhancing Privacy Protection) Act 2012 for utilities and commercial credit providers. More...

Future of Financial Advice (FOFA) Amendments – Details-sage Regulation Impact Statement
TREASURY – 19 March 2014 – A details stage RIS was subsequently prepared and certified by the Department of the Treasury, and has been assessed as adequate by the Office of Best Practice Regulation. More...

Reminder: The Superannuation Legislation Amendment (Reducing Illegal Early Release and Other Measures) Bill
Provisions will be re-introduced enabling the ATO to impose penalties on for breaches including fining trustees for: not keeping proper records, not keeping minutes of their meetings, not lodging returns, and more. The provisions are due to come into effect on 01 July 2014. More...

Fair Work Australia: notices published
A Notice inviting superannuation funds offering a standard MySuper product to apply to the Commission to have the product listed on the Default Superannuation List. Applications must be lodged with the Commission by Monday, 28 April 2014.
A Notice inviting superannuation funds offering an employer MySuper product and employers to which an employer MySuper product relates to apply to the Commission to have the product included on the Schedule of Approved Employer MySuper Products. Applications must be lodged with the Commission by Monday, 28 April 2014.

Legislation

Commonwealth

Superannuation Industry (Supervision) Act 1993
COMLAW – 31 March 2014 – Act No. 78 of 1993 as amended, taking into account amendments up to Tax and Superannuation Laws Amendment (2014 Measures No. 1) Act 2014. More...

Tax and Superannuation Laws Amendment (2014 Measures No. 1) Act No. 11 of 2014
COMLAW – 20 March 2014 – Schedule 1 – Unlawful payments from regulated superannuation funds – Superannuation Industry (Supervision) Act 1993; Schedule 2 – Administrative directions and penalties for contraventions relating to self managed superannuation funds; schedule 3 – Phase-out of rebate for medical expenses; and Schedule 4 – Deductible gift recipients.
Royal Assent on 18 March 2014 Tax and Superannuation LawsAmendment (2014 Measures No. 1) Act 2014

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