In the media
ASIC bans Perth advisor for five years
ASIC – 23 February 2018 - The Australian Securities and
Investments Commission (ASIC) has banned
Perth-based financial adviser Philip Leake from providing financial
services for a period of five years. ASIC found that Mr Leake
failed to act in his clients' best interests when providing
advice on life insurance.
More...
Former Charter Financial Planning adviser permanently
banned for dishonestly charging almost $67,000 in
fees
ASIC – 22 February 2018 - ASIC has permanently banned Brenton
John Poynter of Baulkham Hills, NSW, from providing financial
services. Mr Poynter as an authorised representative of Charter
Financial Planning Ltd, provided financial advice regarding
superannuation products to a number of elderly clients.
More...
"Onerous" SG non-compliance penalties hurt
small businesses
MEDIA – 22 February 2018 - The Institute for Public
Accountants has slammed penalties for super guarantee
(SG) non-compliance as "draconian,"
saying that they could be very damaging to struggling small
businesses and warning that more red tape could be coming.
More...
New Payments Platform Arrives
FSC – 22 February 2018 - The arrival of the New Payments
Platform (NPP) will create ample opportunity for
FSC members to create new products and services, be more efficient
and realise cost savings. The NPP is a significant upgrade to the
nation's payments infrastructure which shortens the processing
of transactions from two or three days to just a matter of seconds.
More...
Director excluded from financial services industry for
five years, pay $400,000 to financial literacy fund
ASIC – 16 February 2018 - Between May 2013 and December 2016
Mr Orth developed and caused Real Wealth to implement a business
model under which it provided financial services to more than 750
clients. Real Wealth did not take into account the personal
circumstances of clients or make reasonable inquiries regarding the
clients' objectives, financial situation or needs.
More...
Strengthening APRA's crisis management
powers
TREASURY - 14 February 2018 - The Turnbull Government is ensuring
Australia's financial system remains unquestionably strong
– by strengthening the APRA's crisis management powers,
with the Senate passing of the Financial Sector Legislation
Amendment (Crisis Resolution Powers and Other Measures) Bill
2017.
More...
Australian Financial Complaints Authority –
legislation passed
SCT – 16 February 2018 - This week, the Bill to establish the
Australian Financial Complaints Authority (AFCA)
passed through parliament. AFCA will be a new one-stop-shop dispute
resolution scheme that will replace the Superannuation Complaints
Tribunal (SCT), the Financial Ombudsman Service
and the Credit and Investments Ombudsman. SCT will continue to
operate for a time after AFCA's introduction to resolve
outstanding complaints.
More...
ASIC welcomes establishment of the Australian Financial
Complaints Authority
ASIC – 14 February 2018 - ASIC welcomes the passage through
Parliament of the Bill to establish the Australian Financial
Complaints Authority (AFCA). In the transition to
the commencement of AFCA, ASIC will retain direct oversight of the
two ASIC-approved schemes - FOS and CIO - which will continue to
provide high levels of service to consumers and firms.
More...
Superannuation benefits should be available to assist
victims of domestic violence
ASFA – 14 February 2018 - In a
submission to a Treasury consultation on the early release of
super, ASFA supported claims for the early release of super on
compassionate grounds being extended to include domestic violence
victims and suggested specific eligibility criteria be prescribed.
More...
Melbourne financial services business and former
director to pay $7.8M for breaches of best interest obligations and
consumer protection laws
ASIC – 08 February 2018 - The Federal Court has found that
three Melbourne-based companies engaged in numerous contraventions
of financial services and consumer protection laws and ordered them
to pay penalties totalling $7,150,000.
More...
In practice and courts
Banking Executive Accountability Regime (BEAR)
commencement dates
Banks will be required to register their senior executives and
directors (accountable persons) with APRA and provide greater
clarity regarding their responsibilities. For large authorised
deposit-taking institutions (ADIs), the BEAR will
commence on 1 July 2018. For small and medium ADIs, the regime will
commence from 1 July 2019, allowing them more time to comply.
More...
Information on new professional standards for financial
advisers now available on ASIC website
ASIC has created a new section on its website to help financial
advisers navigate the incoming professional standards requirements.
The new requirements are aimed at lifting the education, training
and ethical standards in the financial advice sector, and are
outlined here. This information can be found on the ASIC website at
Professional standards for financial advisers- reforms. (13
February 2018).
More...
Competition in the Australian financial system: draft
report
Productivity Commission - This inquiry focusses on competition in
Australia's financial system as a means to improve consumer
outcomes, enhance the productivity and international
competitiveness of the financial system and the broader economy,
and support ongoing financial system innovation — without
undermining financial stability objectives (February 2018). More...
FOS Circulars 2018
Issue 32 -
February 2018
AFSA: Regional personal insolvency statistics –
December quarter 2017
There were 7,687 debtors who entered a new personal insolvency in
the December quarter 2017 in Australia. Of these, 4,785 debtors or
62.2% were located in greater capital cities (14 February 2018).
More...
ASFA Submissions
Submission to The Treasury - Re: Treasury Laws Amendment
(Taxation and Superannuation Guarantee Integrity Measures) Bill
2018.
More...
AIST Submissions
Expert Review of Superannuation Fees and Costs
20 February 2018 -. key concerns with the Disclosure Regime stem
from members being placed in a position of not being able to
compare products, the inability at system level of comparing fees,
costs and returns, and the legislative onus to both collect and
report not including investment managers.
Draft legislation - SG integrity measures
16 February 2018 - AIST supports the measures contained in this
exposure draft.
Means testing of retirement income streams
16 February 2018 – In this submission, AIST offers a guarded
support for the proposed means test treatment outlined in the
Position Paper.
IFAC: Exposure Draft 64, Leases
Released: January 31, 2018; Due: 30 June 2018.
More...
Royal Commission into Misconduct in the Banking,
Superannuation and Financial Services Industry
The Commissioner, the Honourable Kenneth Madison Hayne AC QC, is
authorised to submit an interim report no later than 30 September
2018, and will provide a final report by 1 February 2019. The next
round of public hearings will commence Tuesday, 13 March 2018. More
information is available on the
Transcripts and hearings page. Practice Guidelines are
available on the
Practice Guidelines page. The Royal Commission's initial
public hearing was held on 12 February 2018. A video
recording and
transcript of the initial hearing is available.
Current Inquiries - Economics Legislation Committee
Financial Sector Legislation Amendment (Crisis Resolution Powers and Other Measures) Bill 2017 [Provisions]Status: Reporting Date: 09 February 2018.
Consumer protection in the banking, insurance and financial
sector
Status: Reporting Date: 28 March 2018.
Consultation on protecting your superannuation
entitlements
The Government has released draft legislation to protect
workers' superannuation entitlements and modernise the
enforcement of the superannuation guarantee. The draft legislation
and supporting materials are available on the Treasury
website, and interested stakeholders are encouraged to provide
their views.
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.