Australia: Superannuation, Funds Management & Financial Services News – 15 August 2018

Last Updated: 17 August 2018
Article by Chris Lovell, Paul Faure, Bill Glover and Kylie Wilson

Most Read Contributor in Australia, September 2018

In the media

RC focuses on vertical integration and super
Vertically-integrated structures and their impact on bank-owned superannuation structures have been heavily scrutinised in hearings of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry (09 August 2018). More...

ASIC sees weakness in super insurance code
ASIC notes that, at present, there are significant weaknesses in the current Insurance in Superannuation Voluntary Code of Practice, including around its monitoring and enforcement, that limit is potential effectiveness (09 August 2018). More...

ASIC raises absence of 'best interests' obligation for employers
Employers are not required to act in employees' best interests when selecting a default superannuation fund and this creates an environment where conflicts arise, according to the ASIC (09 August 2018). More...

Turnbull Government expands ASIC's armoury
The Turnbull Government is injecting a further $70.1 million into the ASIC to ensure the corporate regulator has the resources and powers it needs to combat misconduct in the financial services industry and across all corporations for the protection of Australian consumers (07 August 2018). More...

Update on financial advice institutions' fees for no service refund programs
AMP, ANZ, CBA, NAB and Westpac have now paid or offered customers $222.3 million in refunds and interest for failing to provide advice to customers while charging them ongoing advice fees. In addition, ASIC is overseeing FFNS remediation programs by other Australian financial services (AFS) licensees that have identified potential FFNS failings (07 August 2018). More...

APRA releases submission to the Productivity Commission's draft report into superannuation
APRA – APRA releases submission to the Productivity Commission's draft report into superannuation (03 August 2018).

Give the ACCC a competition mandate: Productivity Commission
The Productivity Commission has released its final inquiry report into Competition in the Australian Financial System, recommending the ACCC be given an explicit mandate to monitor competition in the financial system (06 August 2018). More...

Royal commission shows no need to water down company laws, say lawyers
The banking royal commission has shown that Australia should not water down its continuous disclosure regime to make it easier for listed companies to avoid class actions, according to the country's biggest class action outfit (01 August 2018). More...

Professional standards reforms for financial advisers - ASIC update
ASIC has announced changes to reporting dates for a number of required notifications in the transition to the new financial adviser professional standards reforms. The revised schedule is intended to simplify licensees' disclosure obligations (01 August 2018). More...

ASIC updates guidance for funds management industry
ASIC has released a suite of seven new and updated regulatory guides to provide comprehensive guidance to the funds management industry. The guidance has been updated for changes arising from the Asia Region Funds Passport (31 July 2018). More...

In practice and courts

New financial adviser professional standards reforms
The revised schedule is intended to simplify licensees' disclosure obligations. ASIC is also clarifying the process for recognising advisers as 'existing providers'.
Existing providers
Financial advisers who are listed on the Financial Advisers Register (FAR) between 1 January 2016 and 1 January 2019 will be recognised as an 'existing provider' under the new professional standards. If a person is an 'existing provider', they have until 1 January 2021 to pass the exam, and 1 January 2024 to complete an approved qualification. In the meantime, they can continue to work as a financial adviser.
Changes to FAR notifications
A key change is that ASIC will push back the timing for licensees to notify of new advisers who are joining the industry for the first time after 1 January 2019. As a result, new 'provisional relevant providers' can only be added to FAR from 15 November 2019. Further information about the changes to notification dates can be found on ASIC's Professional standards for financial advisers – reforms website (01 August 2018).

Treasury Laws Amendment (Protecting Your Superannuation Package) Bill 2018 [Provisions]
Status: Submissions Closed. Date Referred: 21 June 2018 Reporting Date: 13 August 2018. More...

APRA proposes updates to related parties framework for ADIs
APRA's proposals to modernise the framework include: explicitly addressing 'step-in risk' by incorporating guidance from the Basel Committee on Banking Supervision. A three-month consultation period on the proposed revisions to APS 222 and ARS 222.0 has now commenced, with APRA accepting submissions until 28 September 2018. Copies of the discussion paper are available here.

Draft amendments to Chapters 4 and 15 of the AML/CTF Rules
These amendments exempt reporting entities from certain identification requirements in Chapter 4 and Chapter 15 of the AML/CTF Rules, for customers that are 'custodians'. The definition of 'custodian' in new paragraph 4.4.19(1) limits the exemption to corporate custodians, rather than individuals who provide custodial or depository services. The second public consultation period for these amendments closed on 31 July 2018. More...

ASIC consultation: foreign financial services providers relief proposals
CP 301 sets out a proposal to enable foreign providers to apply for a modified form of Australian financial services (AFS) licence (foreign AFS licence). This follows ASIC's review of the regulatory settings behind our foreign providers relief. The current foreign provider licensing relief due to sunset on 27 September 2018, will be extended until 30 September 2019 while we consult with stakeholders.

APRA: Review of the superannuation prudential framework
The aim of the review is to ensure the prudential and reporting standards, and related guidance, have achieved their objectives and continue to remain fit for purpose. To commence this review, APRA released the first of a series of consultation papers on aspects of the prudential framework. APRA invites written submissions on all consultation papers by 26 September 2018. Copies of the consultation papers are available on APRA's website.

AIST Statement on the Royal Commission
The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry begins its Round Five hearings (6 August 2018). More...

ASFA Submissions
Submission to the Australian Financial Complaints Authority (AFCA)
ASFA response to the AFCA Funding Consultation Paper (31 July 2018). More...


Australian Securities and Investments Commission v Linchpin Capital Group Ltd [2018] FCA 1104
CORPORATIONS – managed investment scheme – ASIC application to appoint receivers – nature and extent of contraventions – scope of assets over which receiver appointed.
Australian Financial Services Reform Act 2001 (Cth); Australian Securities and Investments Commission Act 2001 (Cth); Corporations Act 2001 (Cth); Personal Property and Securities Act 2009 (Cth).
Held: Again, save for ASIC's concession which I apprehend is appropriately given so as to prevent loss being suffered by other persons, I would have been prepared to grant the injunctions preventing Endeavour from engaging in the provision of all financial services.

Aussiegolfa Pty Ltd (Trustee) v Commissioner of Taxation [2018] FCAFC 122
SUPERANNUATION – in-house asset rules – self-managed superannuation fund – where a self-managed superannuation fund acquired units of a particular class in a managed investment scheme – where the units were referred to as units in a sub-fund – where a particular property was acquired by the responsible entity of the managed investment scheme on behalf of the class of unit holders – whether the units held by the trustee of the self-managed superannuation fund constituted an investment in a "related trust" so as to constitute an in-house asset – whether there was a distinct trust associated with the class of units.
TRUSTS – definition of a trust – managed investment scheme – where the constitution of a managed investment scheme conferred on the responsible entity a power to create classes of units and to determine the rights, obligations and restrictions attaching to units in the class – where the responsible entity created a class of units associated with (what was referred to as) a sub-fund – where a particular property was acquired by the responsible entity on behalf of the class of unit holders – where the product disclosure statement stated that the assets of one sub-fund were not available to satisfy liabilities of another sub-fund and that an investor would acquire a beneficial interest in the underlying property held by the sub-fund – whether statements in product disclosure statement could be relied on as secondary evidence of a determination by the responsible entity – whether there was a distinct trust associated with the class of units.
SUPERANNUATION – sole purpose test – self-managed superannuation fund – where self-managed superannuation fund acquired units of a particular class in a managed investment scheme – where the responsible entity acquired a property, being an apartment in a student accommodation complex, on behalf of the class of unit holders – where the custodian of the managed investment scheme entered into a leasing and managing authority with a student housing entity – whether leasing the apartment to the daughter of the sole member of the self-managed superannuation fund at market rent would cause the fund to breach the sole purpose test.

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.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Related Topics
Related Articles
Related Video
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of

To Use you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions