Australia: Superannuation, Funds Management and Financial Services - What's News - 7 October 2015

In the media

Debunking the myths around superannuation tax concessions
ASFA – 1 October 2015 – In light of current discussions between the government and key stakeholders on a broad range of possible reforms, including reforms to the taxation of superannuation, ASFA has issued an updated paper debunking common myths about superannuation.  More...  More...

Australians will get a boost in retirement savings under super reforms
FINANCIAL SERVICES COUNCIL – 1 October 2015 – Average working Australians would have thousands of dollars more in their retirement savings if bigger superannuation funds faced stronger competitive tensions, the Financial Services Council said today, after a new report suggested this would reduce fees.  More...

ASIC remakes 'sunsetting' registered managed investment scheme constitution class order
ASIC – 1 October 2015 – ASIC today made a new legislative instrument to replace a class order that was due to expire ('sunset') on 1 October 2015.  ASIC remade this class order without significant changes before it sunsets, so that its ongoing effect is preserved without any disruption to the entities that rely on it.  More...

ASIC consultation papers on financial reporting and foreign licensees
ASIC – 1 October 2015 – ASIC today released two consultation papers proposing to remake eight class orders that are due to expire ('sunset') in 2016, 2017 and 2018. The draft ASIC instruments, which reflect the minor amendments proposed in the consultation paper, are available on our website at www.asic.gov.au/cp under CP 240 and CP 241. Submissions on CP 240 and CP 241 are due on 30 October 2015.  More...  More...   More...

ASIC sets up robo-advice taskforce
ASIC – 28 September 2015 – ASIC has established an internal task force dedicated to examining the issues associated with robo-advice.  The robo-advice task force will be separate from ASIC's Innovation Hub, which works with start-up robo-advice businesses, ASIC said in its second licensing activity report.  More...

Draft spring repeal day bill
AIST – 28 September 2015 – AIST supports the ATO being able to pay superannuation directly to persons with a terminal medical condition, and the eventual removal of the Lost Member Statement, but submits the LMS removal should be delayed by one year in order to avoid a gap in lost member reporting and improve the quality of reporting.  More...

ESG top risk for super funds: BNP Paribas
MEDIA – 28 September 2015 – Sustainability is rapidly replacing liquidity, credit and market risk as the number one concern for superannuation trustees, says BNP Paribas Securities Services.  More...

ASIC reports on decisions to cut red tape – February to May 2015
ASIC – 28 September 2015 – ASIC has released its latest report outlining decisions on relief applications covering the period 1 February to 31 May 2015, during with ASIC approved 372.   More...  More...

ASIC releases second licensing activity report
ASIC – 24 September 2015 – ASIC's second report, Overview of licensing and professional registration applications: January to June 2015 ( REP 448) sets out recent regulatory outcomes achieved by ASIC in relation to Australian financial services (AFS) applications, Australian credit licence applications, liquidator registration applications, company auditor and approved SMSF auditor registration applications.  More...

ATO reminds employers: time running out to take advantage of SuperStream compliance flexibility
FRANCHISE COUNCIL OF AUSTRALIA – 22 September 2015 – The ATO is reminding large and medium employers they must be SuperStream compliant by no later than 31 October.  The ATO previously announced it would allow these employers (those with 20 or more employees) an additional four months to adopt SuperStream, following the 30 June deadline.  More...

Proposed industry funding model for the ASIC: submissions
GOVERNMENT – 28 August 2015 – Submissions on this consultation paper, together with the findings of the ASIC Capability Review, which is due to report to Government by the end of 2015, will assist the Government's consideration of whether to accept the Inquiry's recommendation that ASIC's regulatory activities should be funded by industry.  Closing date for submissions: 9 October 2015.  More...

Cases

Deputy Commissioner of Taxation (Superannuation) v Ryan [2015] FCA 1037
SUPERANNUATION – pecuniary penalties for admitted contraventions of ss 62(1), 65(1), 84(1), and 109(1) of the Superannuation Industry (Supervision) Act 1993 (Cth) – declarations of contraventions.  More...

Ziogos v FSS Trustee Corporation as Trustee of the First State Superannuation Scheme [2015] NSWSC 1385
INSURANCE – general – total and permanent disablement – psychiatric impairment – requirements of the duty of "utmost good faith" within the facts of the case – whether insurer acted with the utmost good faith in determining whether the insured had provided proof to its satisfaction that a particular state of affairs existed – whether insurer could reasonably have reached the conclusions it did on the evidence available to it – whether insured "unlikely to ever engage in any gainful profession for which she is suited by education, training or experience". First State Superannuation Act 1992 (NSW); Insurance Contracts Act 1984 (Cth); Superannuation (State Public Sector) Act 1990 (Qld). More...

Beck v Colonial Staff Super Pty Ltd & Ors (No. 2) [2015] NSWSC 1360
EQUITY – equitable relief – equitable estoppel – scope of estoppel held to exist in previous judgment – orders necessary to give effect to estoppel. CIVIL PROCEDURE – application for stay of judgment pending appeal or expiry of period for lodging an appeal – whether balance of convenience favours stay – where no evidence as to cost of giving effect to judgment – where over 10 years had passed since termination of Plaintiff's employment – public interest in quick resolution of disputes. COSTS – indemnity costs – common fund basis where partial function of litigation was as a construction suit – whether reasonable to reject alternative offers made in Calderbank letter – where offers made before expert evidence as to quantum served – where offers made without explanation of Plaintiff's claims in context of inherently complex and not-yet-finalised pleadings – interest on costs – where no evidence as to timing of incurring of costs – costs of First Defendant's liquidator – where First Defendant was not heard as to costs. This is the Court's second judgment in these proceedings.  In the Court's principal judgment the Plaintiff, Mr Beck, was successful in challenging the validity of a trustee's December 1996 decision to amend the rules of a superannuation fund to remove a clause under which Mr Beck now seeks benefits.  More...

Legislation

Commonwealth

Superannuation Industry (Supervision) modification declaration No. 1 of 2015
This declaration provides exceptions to restrictions on minimum benefits (remaking MD 26). Registered: 25 September 2015.  More...

Superannuation Laws Amendment (Unclaimed Superannuation Money) Regulation 2015
Exposure draft legislation is being released for consultation on the 2015-16 Budget measure to reduce red tape for superannuation funds and individuals by streamlining lost and unclaimed superannuation administrative arrangements.  The changes apply from 30 June 2016. Exposure Draft: 29 September 2015.  Closing date for submissions: 20 October 2015.  More... More...

Bills – Report due

Superannuation Legislation Amendment (Trustee Governance) Bill 2015
The Bill outlines amendments to the Superannuation Industry (Supervision) Act 1993, Chapter 2 Regulation impact statement: Schedule 1: Governance arrangements for registrable superannuation entities and Chapter 3 Governance arrangements for the Board of the Commonwealth Superannuation Corporation. Report due: 9 November 2015.  Introduced and read a first time: 16 September 2015. Second reading moved: 16 September 2015.  More...

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