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

Last Updated: 16 September 2014
Article by Jenny Willcocks

Most Read Contributor in Australia, January 2019

In the media

Big banks struggling to cross-sell super
MEDIA – 5 September 2014 – The four major banks are having difficulty cross-selling superannuation to their banking customers, with each bank capturing less than one fifth of customer super, according to Roy Morgan Research. More...

Higher adviser education should kick off on 2018: FPA
MEDIA – 4 September 2014 – New financial advisers should be forced to hold a higher education degree from 1 January 2018, the Financial Planning Association (FPA) said in its submission to a Parliamentary Joint Committee (PJC). More...

Mining tax repeal: Superannuation changes to leave Australians "demonstrably worse off"
MEDIA – 3 September 2014 – Australian workers will be "demonstrably worse off" under the Federal Government's deal to scrap the mining tax, the superannuation industry says, because of the removal of the low income earners super contribution. The Government announced increases to super contributions put on hold until 2021. More...

Financial planning inquiry to call on big four Chiefs: report
MEDIA – 3 September 2014 – A new parliamentary inquiry into financial planning industry malpractice will call the heads of Australia's big four banks to give evidence. The Senate Economics Reference Committee, chaired by Senator Dastyari, is planning a wide-ranging inquiry that will take in consumer protection laws, corporate regulation, Future of Financial Advice laws. More...

FSI at risk of being lost in glut of reviews
MEDIA – 2 September 2014 – The Federal Government should undertake an audit of reviews within the financial services sector to ensure the Financial System Inquiry (FSI) is not lost within at least a dozen other inquiries and reviews which overlap with the FSI, according to Chartered Accountants Australia and New Zealand (CAANZ). More...

Super slug: how much you will lose
ISA – 3 September 2014 – An analysis by Industry Super Australia (ISA) has revealed for the first time the impact of the federal governments superannuation changes across the entire workforce. The new research shows that almost all ages and income brackets will have their retirement savings affected, with some demographics set to lose tens of thousands of dollars. More...

ATO talks up SuperStream trials
MEDIA – 2 September 2014 - The ATO is currently overseeing a dry run of the first "end-to-end" SuperStream employer contributions, with some funds hitting member accounts in less than a day. The tax office is currently in the fifth week of an "induction process" with early SuperStream adopters. More...

Coles looking to make super simpler
MEDIA – 2 September 2014 – Groceries giant, Coles, will keep its offers as simple as possible, as it expands its position in the financial services sector with a possible superannuation offer, Coles Financial Services general manager, Richard Wormald says. More...

ASFA hits ATO on data pass through
MEDIA – 2 September 2014 – The Association of Superannuation Funds of Australia (ASFA) has voiced its strong opposition to an Australian Taxation Office (ATO) proposal that all superannuation funds must provide a contribution data pass through service to their default employers. More...

Ultimate super outcomes the key: APRA
MEDIA – 2 September 2014 – The Australian Prudential Regulation Authority (APRA) has used its second submission to the Financial Systems Inquiry to warn against adopting a too simplistic analysis of costs and fees in the superannuation sector. More...

The community needs certainty when it comes to the Superannuation Guarantee
ASFA – 2 September 2014 – The ASFA has welcomed the government's decision to retain the Low Income Superannuation Contribution (LISC) for an additional few years, but says it is highly concerned about the impact that further delaying the increase in the Superannuation Guarantee (SG) will have on the community and their retirement outcomes. More...

Second round submissions to the Financial Services Inquiry
FSI – 29 August 2014 – The Financial System Inquiry (FSI) has received over 6,300 submissions in response to the Inquiry's Interim Report. Due to the large volume received, submissions are being published progressively. The first batch of submissions, are now available. More...

Super regulation lagging, says ASFA
MEDIA - 29 August 2014 – The regulatory oversight of the superannuation system has failed to keep pace with the rapidly changing face of the industry, argues the ASFA. In its response to the Financial System Inquiry Interim Report, ASFA said regulation has struggled to keep up with structural changes in the super industry such as the rise of SMSFs. More...

Group insurance reduces government spending on social security by $403 million annually: new ASFA report
ASFA – 28 August 2014 – New research commissioned by the ASFA has found that insurance provided to people through their superannuation reduces the annual cost to government of social security by about $403 million. More...

FOFA legislative changes pass in the House of Reps
MEDIA – 28 August 2014 – The House of Representatives has voted in favour of the government's amendments to the Future of Financial Advice (FOFA) legislation. More...

In-house managers can lower fees: KPMG
ASFA – 28 August 2014 – The development of internal investment management teams should help superannuation funds drive down member fees, argues KPMG. More...

Objectives and measurable goals are crucial to the long-term success of the superannuation system: ASFA Financial System Inquiry submission
ASFA – 27 August 2014 – Establishing objectives for the superannuation system and setting long-term, measurable goals against which its progress can be assessed, is crucial to ensuring it delivers the best policy outcomes for governments and the community, according to the ASFA in its submission to the Financial System Inquiry Interim Report. More...

International coordination essential for financial services trade – FSC Financial System Inquiry submission
FSC – 27 August 2014 – The Financial Services Council has recommended the Financial System Inquiry considers the appointment of a new ASIC commissioner to deal with international regulatory issues and for an agency to be established to coordinate and promote financial services. More...

CBA and Macquarie financial planning remediation plans designated as Significant Events
FOS – 26 August 2014 – The Financial Ombudsman Service designated the Commonwealth Bank and Macquarie financial planning remediation plans as Significant Events under FOS's Significant Event Strategy when the respective remedial programs were announced. More...

APRA: Response to the Interim Report of the 2014 Financial System Inquiry (Murray Inquiry)
APRA – 29 August 2014 – APRA's Response to the Interim Report of the 2014 Financial System Inquiry (Murray Inquiry). More...

ASIC: Regulation of corporate finance, January to June 2014 (Report 406)
ASIC – Provides statistical data, highlights key focus areas, and includes relevant guidance about ASIC's regulation of fundraising transactions, mergers and acquisitions, corporate governance issues, financial reporting, and share buy-backs. More...

Reminder for SuperStream: Pass Through of Employee Details – Regulation Impact Statement for consultation
GOVERNMENT – The proposed "pass-through" regulation would require any superannuation fund that receives data relating to a contribution being made to another fund to on-forward that data to the other fund. A RIS has been prepared by the Treasury for consultation. The closing date for submissions was 1 September 2014. More...

Keep your super in good hands: industry superfunds launch new campaign
ISA – 1 September 2014 – Industry SuperFunds has launched a public awareness campaign that reinforces to their 5 million members what it means to be with a fund that is run only to benefit them. The new campaign titled "In Good Hands" will be integrated across television, print, digital and outdoor from today. More...

CPS 220 Risk Management and revised CPS 510 Governance
APRA – 29 August 2014 – APRA has released a suite of draft amended prudential standards that contain consequential changes as a result of Prudential Standards. More...

AIST submission: SuperStream – pass through of employee details
AIST – 1 September 2014 – AIST strongly supports the SuperStream reforms, and are pleased to enclose our submission regarding the pass through of Employee Details Exposure. More...

AIST submissions: CP 221 – OTC derivatives disclosure
AIST – 29 August 2014 – In Australia, different types of reporting entities have begun (or will soon begin) reporting OTC derivative transactions in three phases. Superannuation funds are set to report from the third phase, set to commence from October 2014. AIST wishes to express its support for Option 2 as set out on the consultation paper. More...

Cases

SAS Trustee Corporation v Green [2014] NSWCA 289
APPEAL DISMISSED – additional amount payable to a disabled member of the police force who was required to be exposed to "risks to which members of the general workforce would normally not be required to be exposed in the course of their employment" – construction of s 10(1A)(c) of the Police Regulation ( Superannuation ) Act 1906 (NSW) – degree of specificity with which "risks" should be characterised – whether the risks to which the respondent was exposed were sufficiently exceptional – whether the additional amount awarded by the trial judge was commensurate with those risks. More...

Cook v SAS Trustee Corporation [2014] NSWIRComm 43
APPEAL – appeal by former police officer against a decision of SAS Trustee Corporation in which it declined to provide to the appellant a certificate of medical incapacity under s 10B of the Police Regulation ( Superannuation ) Act 1906 – Injuries to back and neck whilst engaged as a highway patrol officer – Whether appellant incapable of discharging his duties as a highway patrol officer at the time of his resignation in August 1991 – Consideration of medical evidence – Domestic problems at time of resignation – Appeal dismissed. More...

MetLife Insurance Ltd v FSS Trustee Corporation / FSS Trustee Corporation v Maund [2014] NSWCA 281
INSURANCE – Life insurance – interpretation of insurance policy – where group policy included benefit for total and permanent disablement – for the purpose of calculating the "Sum Insured" what is meant by "the time of the Insured Event giving rise to the claim". APPEAL AND NEW TRIAL – appeal – leave to appeal – whether leave to appeal should be granted where sum in dispute is less than $100,000 but decision has potential to affect numerous other claims already determined and pending determination. Civil Procedure Act 2005 (NSW); First State Superannuation Act 1992 (NSW);Insurance Contracts Act 1984 (Cth); Insurance Contracts Regulations 1985 (Cth); Police Act 1990 (NSW); Superannuation Administration Act 1996 (NSW). More...

Legislation

Commonwealth

Superannuation Laws Amendment (2014 Measures No. 1) Regulation 2014 SLI 2014 No. 127
This regulation amends the Superannuation Industry (Supervision) Regulations 1994 and Retirement Savings Accounts Regulations 1997 is to make a number of amendments concerning superannuation. These include verification of rollovers for SMSFs; Cross-referencing amendment; Unique contribution identifier; Definition of traditional life insurance policy; Trans-Tasman portability – definition of statutory declaration. Registered 26 August 2014 / Tabled HR 27 August 2014 / Tabled Senate 27 August 2014. More...

Bills

Tax and Superannuation Laws Amendment (2014 Measures No. 5) Bill 2014
A Bill for an Act to amend the law relating to taxation, and for related purposes. Schedule 1 to this Bill amends the Income Tax Assessment Act 1997 and the Taxation Administration Act 1953 to abolish the mature age worker tax offset. Registered 4 September 2014 / Introduced HR 4 September 2014. More...

Corporations Amendment (Financial Advice) Bill 2014
A Bill for an Act to amend the Corporations Act 2001, and for related purposes.
Registered 2 September 2014. More...

Corporations Amendment (Streamlining of Future of Financial Advice) Bill 2014
4.1 – This Bill fulfils an election commitment made by the Government to reduce the regulatory overreach of the Future of Financial Advice (FOFA) legislation.
4.2 – The FOFA legislation, which passed through Parliament in March 2012, was introduced to increase trust and confidence in the financial services industry and increase access to financial advice for retail investors. FOFA made a number of changes to financial advice laws, including removing conflicted remuneration structures, to improve the quality of advice and enhance retail investor protections. The legislation applied voluntarily from 1 July 2012, and was mandatory from 1 July 2013.
4.3 – The Government believes that the FOFA legislation went too far and imposed unnecessary red tape and costs onto industry, which has pushed up the price of financial advice for consumers, which is contrary to the initial goals of FOFA. The Government considers that the legislation has also had a number of unintended consequences that have led to uncertainty in the industry. This Bill fulfils the Government's election commitment to unwind the regulatory overreach created by the FOFA legislation and provide certainty to the financial services industry. 28 August 2014 Reps: Third reading and passed 27 August 2014 Reps: Second reading debate. 19 March 2014 Intro Reps. More...

This publication does not deal with every important topic or change in law and is not intended to be relied upon as a substitute for legal or other advice that may be relevant to the reader's specific circumstances. If you have found this publication of interest and would like to know more or wish to obtain legal advice relevant to your circumstances please contact one of the named individuals listed.

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