Australia: Superannuation & Funds Management - What's News - 18 November 2014

Last Updated: 25 November 2014
Article by Jenny Willcocks, Adeline Hiew and Anne MacNamara

Most Read Contributor in Australia, September 2016

In the media

DIY superannuation trend costly for industry funds: research
MEDIA – 13 November 2014 – Around 38% of Australians who waded into DIY fund territory did so by switching from industry funds, according to new research from the Financial Services Council and UBS. The assets of DIY super funds have ballooned by more than 70% from $316.5 billion to $547 billion in just five years. More...

ASIC issues further guidance on superannuation forecasts
ASIC – 13 November 2014 – ASIC has issued further guidance to assist superannuation fund trustees to provide their members with retirement estimates. These estimates help members to engage with their superannuation. More...

FOS monetary limits receive industry support
MEDIA – 13 November 2014 – Recent industry consultation performed by the Financial Ombudsman Service (FOS) has confirmed general support for the monetary value of its current compensation measures. More...

ASFA Annual General Meeting: Board appointments
ASFA – 13 November 2014 – The Association of Superannuation Funds of Australia (ASFA) announces the ASFA Board has re-elected TAL Limited Managing Director Mr Jim Minto as Chair of the ASFA Board, until an independent Chair has been appointed, following ASFA members' approval of a new constitution today. More...

Three steps to fixing the $92,000 superannuation gender gap: new ASFA policy framework
ASFA – 13 November 2014 – The law should be changed to allow employers to contribute more to the superannuation accounts of their female workers, without breaching anti-discrimination legislation, according to a new policy framework released by the Association of Superannuation Funds of Australia (ASFA). More...

Policy framework to deliver retirement income streams and a better super system: new ASFA report
ASFA – 13 November 2014 – Trustees should be able to default members into MyPension type income streams and it should be compulsory for superannuation fund statements to disclose income stream projections, according to a new policy framework released by the Association of Superannuation Funds of Australia (ASFA). More...

ASFA launches blueprint for post-retirement system
MEDIA – 13 November 2014 – The Association of Superannuation Funds of Australia (ASFA) has attempted to break the deadlock on retirement income innovation with the launch of a paper that sets out a framework for building an effective post-retirement system. More...

Traditional safe havens "dangerous": MLC
MEDIA – 13 November 2014 – Traditional safe havens such as bonds and term deposits can no longer be relied on to balance out equity risk, MLC has warned. The MLC head of portfolio specialists group said he considers traditional safe havens to be "dangerous" given that even a slight increase in inflation is not priced into their current value. More...

ASFA 2014 National Conference: Keynote session six – Sustainability of the system in a time of disruption
ASFA – 13 November 2014 – Speech by Pauline Vamos, Chief Executive Officer, ASFA. More...

ASIC guidance on superannuation forecasts
ASIC – 13 November 2014 – The changes will allow a superannuation fund to include an estimate of the age pension which might be available to the member along with the member's superannuation benefit at retirement. The changes are to ASIC's existing relief for retirement estimates.

Regulatory Guide 229 Superannuation forecasts (RG 229)

Class Order [CO 14/870] Amendment of Class Order [CO 11/1227]

Explanatory Statement for Class Order [CO 14/870]

Report 418 Response to submissions on CP 203 Age pension estimates in superannuation forecasts: Update to RG 229 (REP 418)

ASFA: New Framework for a Better System
ASFA – 13 November 2014 – ASFA outlines the principles on which it believes Australia's retirement income system should continue to be built, as well as the goals and objectives for the system and provides concrete recommendations on the policies and design elements required to achieve these objectives. More... More...

ASFA publications
ASFA – 13 November 2014 – ASFA Paper: The future of Australia's super: a new framework for a better system.

Companies "in the dark" on life premiums
MEDIA – 12 November 2014 – Against the backdrop of a changing superannuation and insurance landscape, Australian companies are "unaware" of scheduled changes to life insurance premiums, Aon Hewitt has found. In its Superannuation and Insurance Pulse Survey, Aon Hewitt found only 38% of Australian companies were aware premiums are due to rise, and of those companies, "more than half" did not know how much the increase will be. More...

APRA has released proposed minor changes to general insurance reporting standards
APRA – 11 November 2014 – ASIC releases advice on the proposed minor changes to three reporting standards, to address issues raised with APRA by industry. More...

Record number of IPO exits underpins strong returns to PE & VC investors in FY2014
AVCAL – 11 November 2014 – A significant increase in exit activity across the Australian private equity (PE) and venture capital (VC) industry underpinned strong returns for investors in the year ended 30 June 2014, according to the 2014 Australian Private Equity and Venture Capital Association (AVCAL) and EY Yearbook, which was released today. More...

TAL lobbies for annuity regulation change
MEDIA – 11 November 2014 – Life insurer TAL has argued in favour of regulatory changes to income stream products in a detailed response to the Treasury's 'Review of retirement income stream regulation' discussion paper. More...

Make it easy for consumers to tell a "local" bank from a major bank
COBA – 11 November 2014 – Major banks will have to rethink their multi-brand strategies if the Financial System Inquiry (FSI) this month recommends changes to disclosure rules to better inform and empower consumers. COBA Acting CEO Mark Degotardi says consumer research suggests major banks are getting away with portraying their sub-brands as independent competitors. More...

APRA calls for tougher banks
MEDIA– 10 November 2014 – While the Australian banking industry is relatively resilient to the immediate impact of a downturn, there is still scope for further improvement, argues APRA. More...

FSI should recommend stronger super safety net for higher retirement savings
ISA– 10 November 2014 – Industry Super Australia's (ISA) final submission to the Financial System Inquiry (FSI) emphatically demonstrates the outperformance of industry superannuation funds over bank-owned and retail funds, underpinned by a robust super safety net. More...

Web could be key to Super member engagement
FINSIA– 10 November 2014 – Very few defined contribution (DC) pension plan participants seek advice from their fund, but harnessing online facilities could be the key to driving member engagement. According to an ACFS paper, entitled The demand for advice in defined contribution pension plans, the internet could be used as a pathway to encourage participants to take advantage of their fund's advice facilities. More...

Planners flock to CFP® Certification Program
FPA– 10 November 2014 – The Financial Planning Association of Australia (FPA) has experienced a surge in demand for the (CFP) certification program on the back of the ongoing debate regarding education standards of financial planners. More...

ASFA submissions
ASFA – 10 November 2014 – Submission to Treasury: Updated SuperStream – Pass through exposure draft and explanatory statement.

APRA: New FAQ on MySuper products and one amended FAQ on superannuation reporting standards
APRA – 7 November 2014 – APRA has released one new FAQ on MySuper products and one amended FAQ on superannuation reporting standards. More... More...

Lower super fees may drive SMSF closures
MEDIA– 6 November 2014 – Reduced fees in Australian Prudential Regulation Authority (APRA)-regulated funds could result in self-managed super fund (SMSF) closures, according to the latest research from CoreData. More...

TAL restructures super board
MEDIA– 5 November 2014 – Three independent directors have been appointed to the board of TAL Superannuation Limited (TASL). Peter Lewinsky has been appointed as independent chair of the Trustee Board while Anne Templeman-Jones has been appointed as an independent director and chair of TASL's remuneration committee. More...

RBA announces cash rate decision
MEDIA– 4 November 2014 – The Reserve Bank of Australia has announced the outcome of its monthly board meeting on the official cash rate and voted to leave the cash rate on hold at 2.5%. More...

AAT backs Astarra fund manager ban
MEDIA– 4 November 2014 – An investment manager implicated in the Trio Capital fraud has failed to have an ASIC banning order overturned by the Administrative Appeals Tribunal. In a decision handed down the tribunal opted to dismiss an appeal by former Astarra Strategic Fund chief investment strategist and Astarra Asset Management director Eugene Liu of a permanent banning order issued by ASIC in March 2013. More...

Australians stuck in super squeeze, with women bearing the brunt
REST– 3 November 2014 – Australians may be financially responsible when it comes to paying off the mortgage, but many are neglecting to save for the future, placing them in a risky situation for retirement, according to new research released today by REST Industry Super. More...


Queensland Local Government Superannuation Board v Superannuation Complaints Tribunal & Anor [2014] FCCA 2473
ADMINISTRATIVE LAW – Superannuation – wind up and transfer of fund – outgoing trustee scheme for distribution of anticipated surplus/deficit on rollover occasioned by end of year and tax issues – incoming trustee applying funds in accordance with outgoing trustee's decision – in circumstances no fetter on incoming trustee's discretion. APPEAL – Superannuation Appeals Tribunal – question of law – denial of procedural fairness. Corporations Act, s.1017B; Local Government Act 2009; Superannuation (Industry) Sup. More...

Wellington Capital Limited v Australian Securities and Investments Commission [2014] HCA 43
CORPORATIONS – Managed investment schemes – Role of responsible entity under Ch 5C of Corporations Act 2001 (Cth) – Construction of scheme constitution – Where responsible entity granted all powers "legally possible" for person or corporation to have – Where responsible entity made in specie distribution of scheme property to unit holders – Whether distribution beyond responsible entity's powers under scheme constitution. Trusts – Managed investment schemes – Responsible entity as statutory trustee –Whether general principles of law relating to trusts apply to responsible entity's functions under scheme constitution. Practice and procedure – Federal Court of Australia – Where Federal Court made declaration that responsible entity had no power under scheme constitution to distribute scheme property to unit holders – Where unit holders not represented in appeal – Whether Federal Court erred in exercising discretion to make declaration. More...

Hannover Life Re of Australasia Ltd v Wright [2014] FCA 1163
SUPERANNUATION – whether, in the particular circumstances of the present case, the Superannuation Complaints Tribunal had the power to redraft an exclusion clause imposed as a term and condition of additional optional death and disablement cover offered by the trustee of a superannuation fund under insurance arrangements put in place by that trustee with a reinsurer in circumstances where the reinsurer insisted upon the inclusion of that particular exclusion clause relying upon the terms and conditions of the policy entered into between it and the trustee. More...



Counter-Terrorism Legislation Amendment (Foreign Fighters) Act (No. 116 of 2014)
An Act to amend the law relating to counter terrorism. Registered 6 November 2014 / Date of Assent 3 November 2014. More...

Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (No. 169 of 2006)
Proposed amendment by Freedom of Information Amendment (New Arrangements) Bill 2014 and Counter-Terrorism Legislation Amendment (Foreign Fighters) Bill 2014. More...


ASIC Class Order [CO 14/870]
This instrument amends the ASIC Class Order [CO 11/1227] to allow providers of retirement estimates to include an estimate of the age pension which might be available to the member along with the member's superannuation benefit at retirement, and to make other minor technical amendments. Registered 13 November 2014. More...

ASIC Class Order [CO 14/1118]
This class order amends the ASIC Class Order [CO 12/749] by extending the relief from the shorter PDS regime, that was due to expire on 30 June 2015, to 30 June 2016 pending the outcome of the Financial System Inquiry and further work by the Government on the shorter PDS regime. Registered 5 November 2014. More...

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