Australia: Superannuation, Funds Management & Financial Services News – 11 July 2017

Last Updated: 19 July 2017
Article by Chris Lovell, Paul Faure and Bill Glover

Most Read Contributor in Australia, July 2017

In the media

NAB makes corrective disclosure to customers about relationships within its wealth management business
ASIC – 07 July 2017 - An ASIC investigation of a number of advice licensees within the National Australia Bank Group (NAB Group), for failing to disclose relationships between advisers, advice licensees, and other members of the NAB Group that issue investment products, has resulted in corrective disclosure being made to customers. More...

AustralianSuper 'not concerned' about bank tax
MEDIA – 06 July 2017 - The country's biggest superannuation fund has not changed its view on investing in banks as a result of the federal government's major bank tax, despite bank claims the policy will hit all Australians' retirement savings. More...

ASIC warns investors not to engage with 'Skyllex'
ASIC – 06 July 2017 - ASIC is warning the public not to use a website which promotes financial investments offered by 'Skyllex', a company incorporated in Australia. Although Skyllex has been issued with a Certificate of Registration by ASIC, it does not have an Australian financial services (AFS) licence and it is not authorised by an AFS licensee to provide financial services. More...

ASIC wins case against former AMP adviser
ASIC – 06 July 2017 - The Administrative Appeals Tribunal has upheld ASIC's permanent ban of former AMP financial adviser Rommel Panganiban. Mr Panganiban was found to have advised 49 clients who held risk insurance through their AMP super fund to cease their existing AMP policy and replace them with an alternative AMP insurance policy, pocketing the commission. More... (ASIC) More...

FPA education proposal receives member approval
MEDIA – 06 July 2017 - The FPA's proposal for a 100-point system to the new Financial Adviser Standards and Ethics Authority has received broad support from its members. The FPA proposed a points system whereby 100 points means the adviser meets the new qualification requirement. More...

FSC renews calls for super competition
MEDIAC – 05 July 2017 - The Financial Services Council (FSC) has called for the implementation of competition reforms in Australia's superannuation sector, saying that increased competition would save consumers $292 million in super fees More...

ASIC finds lack of superannuation transparency
MEDIAC – 05 July 2017 - ASIC has found that 21 super fund trustees have failed to meet transparency information (TI) requirements on their websites, following an earlier review as part of the Stronger Super reforms. Under s29QB of the Superannuation Industry (Supervision) Act 1993 (SIS Act), each superannuation fund must disclose TI on a website and keep it up-to-date at all times. More...

'Wealthy minority': offset mortgages balance debt boom
MEDIA – 05 July 2017 - Rich Australians with mortgage offset accounts are balancing out the nation's record household debt levels, but poorer borrowers on interest-only mortgages are facing increasing risks, according to Morningstar. More...

Sedgwick missed bank culture issues, Senate hears
MEDIA – 04 July 2017 - A Senate committee will consider further investigation into a "powerful driver of frontline behaviour" by bank staff that harmed employees and consumers and was missed by the Sedgwick review (04 July 2017). More...

ASIC acts to improve transparency of super websites
ASIC – 04 July 2017 - ASIC has intervened in relation to 21 superannuation trustees, representing 15 per cent of the trustee population, to improve 'Transparency Information' (TI) on their super fund websites. Under s29QB of the Superannuation Industry (Supervision) Act 1993 (SIS Act), each superannuation fund must disclose TI on a website and keep it up to date at all times. More...

ASIC takes interest in super funds
MEDIA – 04 July 2017 - The ASIC has released a report on its review of consumers' engagement with their superannuation funds, which focused on the experience of less-engaged super fund members. According to the Deputy Chairman of ASIC, Peter Kell, the review sets out key principles that could help improve member experience of superannuation as well as pointing to some areas for improvement. ASIC's report on its review can be accessed at this PS News link. More...

FSC life insurance code takes effect
MEDIA – 30 June 2017 - The FSC has set up an independent body to ensure members comply with its Life Insurance Code of Practice, which took effect on 1 July (03 July 2017). More...

ASIC finds poor conduct with superannuation trustees
MEDIA – 03 July 2017 - ASIC has released a report in which it has identified a number of unfair practices of superannuation funds that would have resulted in detrimental customer outcomes. In its Member experience of superannuation report released last Friday, ASIC found instances relating to poor disclosure where members' insurance cover had ceased or changed without adequate forewarning by the superannuation trustee. More...

Super review moves to final stage
The federal government has announced the start of the final stage of the Productivity Commission's review into Australia's superannuation system to assess its efficiency and dissect whether issues such as the current default settings are appropriate (04 July 2017). More...

Review into the efficiency and competitiveness of the superannuation system commences
MEDIA– 30 June 2017 - The Turnbull Government has taken further action to ensure Australia's superannuation system is as efficient and competitive as possible with the release of the Terms of Reference for the Productivity Commission's system wide review. More...

ASIC releases superannuation member experience report
ASIC – 30 June 2017 - ASIC has today released a report about our review of key aspects of consumer engagement with their super funds, focusing on the experience of less-engaged superannuation fund members. More... (Report) More...

APRA's powers are limited, warns Byres
MEDIA – 29 June 2017 - The prudential regulator has reminded a parliamentary inquiry that it does not have oversight of the entire Australian financial system. More...

AIST calls for online form improvements
MEDIA – 29 June 2017 - The Australian Institute of Superannuation Trustees (AIST) has welcomed the digitisation of superannuation choice forms by the Australian Taxation Office (ATO), while stipulating employees should have clear visibility of their employer's default fund within the new online system. More...

Default fund must be named on new superannuation Choice online form
AIST – 28 June 2017 - AIST has welcomed the digitization of superannuation choice forms but expressed concerns that important consumer protections could be overlooked as part of the process (28 June 2017). More...

Justification needed for interest rate movements
MEDIA – 27 June 2017 - Banks need to justify their decisions to increase interest rates, says the Finance Brokers Association of Australia (FBAA). Executive director Peter White says interest rate movement has seen some investor and interest only loans increase by as much as 66 basis points, some since the federal budget was handed down in May, but there has been little explanation as to why. More...

New super regime prompts ASIC SOA extension
MEDIA – 27 June 2017 - Following the release of a new legislative instrument by ASIC yesterday, financial advisers would have more time to provide retail clients with a statement of advice (SOA) as they navigated the transition to the new superannuation regime. More...

ASIC extends super SOA deadline
MEDIA– 26 June 2017 - The corporate regulator has announced it will extend the time advisers have to provide clients with a statement of advice (SOA) relating to superannuation. The relief will apply to superannuation-related personal advice where the advice is requested and provided before 1 July 2017. More...

In practice and courts

ASIC Corporations (Urgent Superannuation Advice) Instrument 17-530 (the Instrument)
This instrument temporarily extends the time financial advisers have to provide retail clients with a Statement of Advice (SoA) under s946C of the Corporations Act, to provide a SoA when or as soon as practicable after personal advice is provided to a retail client.
The relief gives financial advisers up to 30 days to provide a SoA for personal advice provided to retail clients about a superannuation product in connection with the changes in laws regulating superannuation as a result of the Treasury Laws Amendment (Fair and Sustainable Superannuation) Act 2016 where the advice is requested and provided before 1 July 2017 (26 June 2017). More...

ASIC Class Order [CO 12/749] Relief from the Shorter PDS regime
The class order relief was due to expire on 30 June 2017. The class order provides interim relief, until 30 June 2018, to exclude multifunds, superannuation platforms and hedge funds from the disclosure requirements of the shorter Product Disclosure Statement (PDS) regime under Part 7.9 of the Corporations Regulations 2001 (29 June 2017). More...

ASIC clarifies its position on the use of 'independently owned' under s923A
ASIC has clarified its position on the use of restricted terms relating to the independence of financial advisers after seeking external legal advice on whether phrases such as 'independently owned' are restricted terms under s923A of the Corporations Act (the Act). Section 923A provides that financial service providers can only use certain restricted words and expressions if they do not receive commissions, volume-based payments, or other gifts or benefits, and operate without any conflicts of interest (27 June 2017). More...

FPA: Superannuation
The ATO has released a range of the materials to assist financial planners and clients with the superannuation changes commencing 1 July 2017. Two videos with ATO Superannuation Deputy Commissioner James O'Halloran discussing the key things individuals and SMSFs need to be aware of. More...

ACCI: Key Super Changes from 1 July 2017
Key Super Changes from 1 July 2017: A message from ACC Australia Corporate Partner HSBC (06 July 2017). More...

AASB: End of an era
The 30 June 2017 marks the end of the AAS series of accounting standards, with AAS 25 Financial Reporting by Superannuation Plans being superseded by AASB 1056 Superannuation Entities from the current financial year. The accounting profession's Standards were first labelled as AAS Standards in 1979, and officially identified as 'Australian Accounting Standard AAS X' from 1989, with the issue of AAS 1 Profit and Loss or other Operating Statements.

AustralianSuper 'not concerned' about tax on banks
Date: 06/07/2017 - Collection: Media - ID: media/pressclp/5377379 - Source: Canberra Times - Author: YEATES, Clancy (06 July 2017).

ASFA submissions
29 June 2017: Submission to The Treasury - Response to Consultation on the establishment, merits and potential design of a compensation scheme of last resort and the merits and issues associated with providing access to redress for past disputes. More...
26 June 2017: Submission to The Treasury - Discussion Paper on Proposed Financial Institutions Supervisory Levies for 2017–18. More...

FPA: Superannuation
The ATO has released a range of the materials to assist financial planners and clients with the superannuation changes commencing 1 July 2017. More...

Reminder: Transition period for updated fee and cost disclosures
ASIC has extended the transition period for trustees of superannuation funds and responsible entities of managed funds and other managed investment schemes (issuers) to comply with updated fee and cost disclosure requirements in relation to product disclosure statements (PDSs), until 30 September 2017.

Cases

Moore and Commissioner of Taxation (Taxation) [2017] AATA 998
TAXATION – superannuation – excess contributions tax – excess concessional contributions – modifications for defined benefit interests - excess non-concessional contributions – Commissioner's discretion to disregard contributions or to allocate to another financial year – whether Commissioner may make determination – whether there are special circumstances.
Superannuation (Excess Concessional Contributions Tax) Act 2007 (Cth), ss 4, 5; Superannuation (Excess Non-concessional Contributions Tax) Act 2007 (Cth), ss 4, 5.

Legislation

NSW

Regulations and other miscellaneous instruments
State Authorities Non-contributory Superannuation Amendment (Australian Registry Services Pty Ltd) Order 2017
(2017-337) — published LW 5 July 2017.
State Authorities Non-contributory Superannuation Amendment (Keolis Downer Hunter Pty Ltd) Order 2017
(2017-340) — published LW 5 July 2017.
State Authorities Superannuation Amendment (Australian Registry Services Pty Ltd) Order 2017
(2017-338) — published LW 5 July 2017.
State Authorities Superannuation Amendment (Keolis Downer Hunter Pty Ltd) Order 2017
(2017-341) — published LW 5 July 2017.
Superannuation Amendment (Australian Registry Services Pty Ltd) Order 2017
(2017-339) — published LW 5 July 2017.

Queensland

Subordinate legislation as made
No 104: Superannuation (State Public Sector) (Scheme Membership) Amendment of Deed Regulation 2017
- Superannuation (State Public Sector) Act 1990 – 30 June 2017.

No 105: Superannuation Legislation (Scheme Membership) Amendment Regulation 2017 - Local Government Act 2009, Superannuation (State Public Sector) Act 1990 – 30 June 2017.

Victoria

Acts

Superannuation Amendment (PSSAP Membership) Act 2017
(No. 68/2017) Assent: 23/06/2017.

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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