In the media
Productivity Commission efficiency review – ASFA
concerned that framework complexity will drive up costs for
members
ASFA – 25 November 2016 – The Association of
Superannuation Funds of Australia (ASFA) today
expressed concern regarding the scope of the proposed framework,
released today by the Productivity Commission, for assessing the
competitiveness and efficiency of the Australian superannuation
system. The report, "How to Assess the Competitiveness and
Efficiency of the Superannuation System", follows a
Productivity Commission issues paper released on 16 March this year
and a draft report released on 2 August.
ASIC consults on remaking class orders on application form
requirements
ASIC – 25 November 2016 – ASIC today released a
consultation paper proposing to remake four class orders that are
due to expire ('sunset') in 2017 and to incorporate two
related class orders into one new instrument. The class orders
proposed to be remade are:
- Class Order [CO 02/260] Product Disclosure Statements: Application forms created by licensee;
- Class Order [CO 02/262] Applications to switch managed investments products;
- Class Order [CO 07/10] Technical disclosure relief for reconstructions and capital reductions (paragraphs 4 and 8); and
- Class Order [CO 02/437] Eligible applications: Relief from s1016A for managed investment products.
How to Assess the Competitiveness and Efficiency of the
Superannuation System
GOVERNMENT – 25 November 2016 – This study is now
complete and the report has been released. The commissioned study
developed criteria to assess the efficiency and competitiveness of
the superannuation system.
FPA announces impending Money & Life website
launch
FPA – 24 November 2016 – The Financial Planning
Association of Australia (FPA) has announced it
will soon launch Money & Life, an online destination designed
to help Australians improve their financial wellbeing. The site
will offer regular content that empowers and educates Australians
with up-to-date information.
FPA receives ASIC Professional Code
approval
FPA – 24 November 2016 – The Financial Planning
Association of Australia (FPA) announced today
that ASIC has approved the FPA Professional Ongoing Fees Code,
providing FPA members with an alternative to the opt-in laws when
engaging clients in an Ongoing Fee Arrangement.
ABA welcomes higher standards for financial
advisers
ABA – 24 November 2016 – New legislation to raise the
competency and ethical conduct standards of financial advisers will
turn financial advice into a trusted profession, the Australian
Bankers' Association said today.
Reform passage heralds new era for super
MEDIA – 24 November 2016 – The Federal Government has
achieved bipartisan support for the bulk of its reforms to
superannuation, following the passing of its Treasury Laws
Amendment (Fair and Sustainable Superannuation) Bill through
both houses.
Government processing agenda to strengthen the
superannuation system and financial services
FSC – 24 November 2016 - The Financial Services Council
(FSC) commends the Government for the successful
passage through parliament of tax changes which will make the
superannuation system more sustainable and flexible. The FSC also
welcomes the Government's broader proposals to increase
consumer protections in superannuation, financial advice and life
insurance.
ASIC Consultation Paper 274: Remaking ASIC class orders on
application form requirements
ASIC – 24 November 2016 – ASIC is seeking feedback on
our proposals to incorporate ASIC Corporations (Options: Bonus
Issues) Instrument 2016/77 and Class Order [CO 14/26]
Personalised or Australian financial services licensee created
application forms into the new instrument. Submissions on
CP 274 are due on 2 January 2017.
APRA Consultation: draft guidance on successor fund transfers and
wind-ups for superannuation trustees
APRA – 24 November 2016 – Australian Prudential
Regulation Authority (APRA) today released for
consultation draft guidance on successor fund transfers and
wind-ups for APRA-regulated superannuation trustees (RSE
licensees). A successor fund transfer is a transfer of the members
in a superannuation fund to a different fund (successor fund).
Draft Prudential Practice Guide SPG 227 Successor Fund
Transfers and Wind-ups (draft SPG 227) replaces previous APRA
guidance.
ASFA Submissions
ASFA – 24 November 2016 – The Association of Superannuation Funds of Australia (ASFA) provides the following submissions:
- Submission to the Committee Secretary, Parliamentary Joint Committee on Corporations and Financial Services titled "Inquiry into the Life Insurance Industry". More...
- Submission to the Senate Standing Committees on Economics titled "Treasury Laws Amendment (Fair and Stable Superannuation) Bill 2016 and the Superannuation (Excess Transfer Balance Tax) Imposition Bill 2016". More...
Turnbull government delivers on fairer, more sustainable
superannuation
TREASURY – 23 November 2016 – The reforms include the
introduction of a $1.6 million transfer balance cap, which places a
limit on the amount an individual can transfer into the tax-free
earnings retirement phase and the introduction of the Low Income
Superannuation Tax Offset, which is expected to boost the
retirement incomes of around 3.1 million low income earners.
New super changes will improve outcomes for low income
earners, particularly women
AIST – 23 November 2016 – AIST today welcomed the
passage of the Government's super tax reform package through
both houses of Parliament.
Passing of Budget Super Tax Package provides equity,
sustainability and certainty
ASFA – 23 November 2016 – The Association of
Superannuation Funds of Australia (ASFA) today
welcomed the passing of legislation enabling the Government's
superannuation tax changes and called for no further changes to the
tax treatment of super.
Super governance bill back on Government
agenda
MEDIA – 23 November 2016 – The Federal Government would
reintroduce its previously failed legislation mandating a minimum
of one-third independent directors on not-for-profit superannuation
fund boards, Revenue and Financial Services Minister Kelly
O'Dwyer said yesterday.
FPA welcomes introduction of Professional and Education
Standards Legislation into Parliament
FPA – 23 November 2016 – The Financial Planning
Association of Australia (FPA) welcomes the
Government's introduction of legislation on the Professional
Standards and Education Framework into Parliament today. The
legislation, if approved, will be effective from 1 July 2017 and
involve the establishment of an independent standards setting
body.
Professional Standards for Financial Advisors
Introduced
TREASURY – 23 November 2016 – The Minister for Revenue
and Financial Services, the Hon Kelly O'Dwyer MP, today
introduced legislation into Parliament to mandate professional
standards for financial advisers. The new professional standards
regime will commence on 1 January 2019.
FSC welcomes the introduction of new professional standards
framework for financial advisors
FSC – 23 November 2016 – The Financial Services Council
welcomes today's introduction of legislation establishing a new
professional standards and education framework for financial
advisers.
ASIC approves the FPA Professional Ongoing Fees
Code
ASIC – 23 November 2016 – ASIC has provided relief for
members of the Financial Planning Association of Australia
(FPA) who subscribe to the FPA Professional
Ongoing Fees Code (the FPA Code) from compliance
with the opt-in requirement. The relief is facilitated by
ASIC's approval of the FPA Code.
AUSTRAC collaborates on risks in super
sector
AUSTRAC – 22 November 2016 – The first ever risk
assessment of money laundering and terrorism financing
(ML/TF) in Australia's superannuation sector
has identified significant risks of fraud and cybercrime.
AUSTRAC cleans up on money laundering
AUSTRAC – 22 November 2016 – The Australian Transaction
Report and Analysis Centre (AUSTRAC) has achieved
savings of $28.1 million for Australia's financial
organisations by cutting red tape from the rules relating to
anti–money-laundering and counterterrorism financing
(AML/CTF).
Audit report reveals serious APRA action
MEDIA – 22 November 2016 – An audit report has revealed
the degree to which the Australian Prudential Regulation Authority
(APRA) has been engaged in serious enforcement
action against superannuation funds.
ASIC: Relief for foreign financial service providers from
Luxembourg
ASIC – 22 November 2016 – ASIC has extended its relief
for foreign financial service providers (FFSPs)
from the requirement to hold an Australian financial services
(AFS) licence when providing financial services to
Australian wholesale clients by Luxembourg fund managers. The
relief in ASIC Corporations (CSSF-Regulated Financial Services
Providers) Instrument 2016/1109
applies to Luxembourg fund managers. The relief applies until 28
September 2018.
APRA – 22 November 2016 – The Australian Prudential
Regulation Authority (APRA) today released its Quarterly
Superannuation Performance publication and the Quarterly MySuper
Statistics report for the September quarter 2016
.
ASIC bans former Sentinel Private Wealth adviser for 5
years
ASIC – 17 November 2016 – ASIC has banned Stephen
Michael Beckton, a financial adviser and former authorised
representative of Sentinel Private Wealth Pty Ltd, from providing
financial services for 5 years. An ASIC review of Mr Beckton's
advice found that he had recommended clients change superannuation
and insurance products in circumstances where there was little
benefit, but significant cost.
ASIC remakes 'sunsetting' class orders on financial
services disclosure
ASIC – 17 November 2016 – ASIC has remade the relief
found in each of three class orders relating primarily to the
disclosure requirements in Chapter 7 of the Corporations Act, where
that relief is considered to still be both necessary and
appropriate (2016/1054, 2016/1055, 2016/1056).
AIST submission: Senate Economics: Super reform package of
bills
AIST – 16 November 2016 – This package of bills contain
tax measures proposed in the 2016 Federal Budget. The Australian
Institute of Superannuation Trustees (AIST)
generally supports these measures, noting some practical
difficulties to implementation. In this submission, AIST encourages
prompt passing of the bills to ensure that sufficient time is given
to enable implementation by 1 July 2017.
Fund manager capacity no predictor of
returns
MEDIA – 15 November 2016 – A new CIFR research paper
has cast doubt on the notion that fund manager scale is an
important factor when it comes to performance. The study, titled
"Capacity Management for Institutional Asset Owners",
found that the size of funds under management
(FUM) may not have a relationship with
performance.
Legislation – Commonwealth
Bills
Superannuation (Departing Australia Superannuation
Payments Tax) Amendment Bill 2016
Part of a package of four bills in relation to tax arrangements for
working holiday makers, the bill amends the Superannuation
(Departing Australia Superannuation Payments Tax) Act 2007 to
increase the rate of the departing Australia superannuation
payments tax to 95% for working holiday makers. Passed by both
Houses: 24 November 2016.
Superannuation (Excess Transfer Balance Tax) Imposition
Bill 2016
Introduced with the Treasury Laws Amendment (Fair and
Sustainable Superannuation) Bill 2016, the bill imposes an
excess transfer balance tax on the notional earnings of capital
moved into a retirement phase superannuation account that is in
excess of $1.6 million. Senate – Third reading agreed to: 23
November 2016.
Superannuation (Objective) Bill
2016
The Bill establishes a legislative framework to guide the
development of future superannuation policy. It does this by
enshrining the primary objective of the superannuation system in
legislation and the subsidiary objectives of the superannuation
system in regulation. It requires new bills and regulations
relating to superannuation to be accompanied by a statement of
compatibility with the objective of the superannuation system. The
subsidiary objectives of the superannuation system will be
prescribed by regulation. Senate – Second reading moved: 23
November 2016. Part 5 of Schedule 10 to the Treasury Laws
Amendment (Fair and Sustainable Superannuation) Bill 2016
makes a consequential amendment to the Legislation Act 2003 to
require a statement of compatibility with the objective of the
superannuation explanatory statement for a regulation relating to
superannuation.
Treasury Laws Amendment (Fair and Sustainable
Superannuation) Bill 2016
A Bill for an Act to amend the law relating to taxation and
superannuation. Introduced with the Superannuation (Excess
Transfer Balance Tax) Imposition Bill 2016, the bill amends
five Acts to impose a $1.6 million cap on the amount of capital
that can be transferred to the tax-free earnings retirement phase
of superannuation. Passed by both Houses: 23 November 2016.
Regulations
ASIC Corporations (Ongoing Fees Code) Instrument
2016/1129
This instrument approves the FPA Professional Ongoing Fees Code
dated 28 September 2016 and issued by the FPA, as in force at the
date of this instrument. This legislative instrument exempts a
person who receives fees under an ongoing fee arrangement from
giving the client a written renewal notice every 2 years which
requires the client to opt-in to renew that agreement, on the
conditions set out in the instrument. Registered: 24 November 2016.
Tabled in House of Representative and Senate: 28 November 2016.
ASIC Corporations (Updated Product Disclosure Statements)
Instrument 2016/1055
This instrument continues the substantive effect of the relief
granted by CO 03/237 which grants relief from the requirements in
section 1012J in certain circumstances. Registered: 16 November
2016. Tabled in House of Representatives and Senate: 21 November
2016.
ASIC Corporations (Repeal) Instrument
2016/1053
This instrument repeals the ASIC Class Order [CO 02/1072], ASIC
Class Order [CO 03/1092], and ASIC Class Order [CO 03/237].
Registered: 16 November 2016. Tabled in House of Representatives
and Senate: 21 November 2016.
ASIC Corporations (Top-up Product Disclosure Statements Relief)
Instrument 2016/1054
This instrument continues the substantive effect of the relief
granted by CO 02/1072 which grants an exemption from sections
1012A, 1012B and 1012C in certain circumstances. Registered: 16
November 2016. Tabled in House of Representatives and Senate: 21
November 2016.
ASIC Corporations (Joint Product Disclosure Statements) Instrument
2016/1056
This instrument continues the substantive effect of the relief
granted by CO 03/1092 which modifies section 1013A of the
Corporations Act and omits regulation 7.9.07J of the Corporations
Regulations to permit joint Product Disclosure Statements in
certain circumstances. Registered: 16 November 2016. Tabled in
House of Representatives and Senate: 21 November 2016.
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