In the media
ASIC targets licensees over lack of AFCA
membership
Over 50 financial services and credit licensees have had
their licenses formally suspended or cancelled by the Australian
Securities and Investments Commission (ASIC) after
failing to obtain membership of the Australian Financial Complaints
Authority (AFCA)(12 July 2019).
More...
AFCA reminds insurance companies to focus on
fairness
The AFCA has reminded insurance companies that complaints
it receives will be assessed on how fairly the company treats its
customers. The reminder comes in response to media reports that
consumers have been denied insurance or have been asked to
undertake genetic testing (11 July 2019).
More...
Grattan Institute contradicts itself on super
claims
The Grattan Institute has been caught out contradicting
itself in its attempts to undermine the superannuation guarantee (
10 July 2019).
More...
ASIC consults on remaking class order on departed former
temporary residents' superannuation
ASIC released a consultation paper about whether it should
remake a class order that provides conditional relief to
superannuation trustees (10 July 2019).
More...
ASIC consults on proposal to intervene to stop consumer
harm in short term credit
ASIC has released a consultation paper (CP
316) on the first proposed use of its new product
intervention power. In its first proposed deployment of this power,
ASIC is targeting a model involving a short term credit provider
and its associate who charge fees under separate contracts (09 July
2019 ).
More...
ASIC boosts AFSL application requirements
ASIC has altered the procedure it uses to assess
Australian Financial Services Licence applicants, with many now
required to provide more historic information to the corporate
regulator (08 July 2019 ).
More...
ASIC accepts court enforceable undertakings from CBA and
ANZ over superannuation product distribution
ASIC has accepted court enforceable undertakings from the
Commonwealth Bank of Australia and Australia and New Zealand
Banking Group under which the banks have agreed to change the way
they distribute superannuation products to their customers (06 July
2018).
More...
ASIC requires compliance with restrictions on use of
'independent'
ASIC is continuing to monitor the financial advice
industry's use of restricted terms 'independent' and
'independently owned', taking steps to intervene when it
identifies concerns. Following surveillance of industry websites,
ASIC has required four financial advice companies to cease and
amend false claims of independence that could mislead consumers (05
July 2019).
More...
ASIC cancels AFS licence of Australasia Wealth Services
and Management
AWSM breached its financial reporting and audit
obligations, as well as the requirement to obtain membership of the
Australian Financial Complaints Authority
(AFCA)(05 July 2019).
More...
ASIC to offer AFSL relief to overseas firms
ASIC has opened consultation on its proposal to scrap the
need for foreign providers of funds management services to
professional investors to hold an Australian Financial Services
Licence (04 July 2019).
More...
Whistleblowers given new protection
From July 1 2019, whistleblowers who report misconduct
about companies and company officers have more rights and stronger
protections. Large proprietary companies, public companies, and
corporate trustees of registrable superannuation entities are now
required to have a whistleblower policy in line with the changes
(03 July 2019).
More...
New regime for corporate whistleblower protections has
commenced
From July 1, whistleblowers who report misconduct about
companies and company officers can access stronger rights and
protections in the Corporations Act 2001 (01 July 2019).
More...
Proposed amendments to the protecting your super
legislation will deliver better outcomes
ASFA says proposed amendments to the Protecting Your Super
legislation flagged by Government are a positive step for
consumers. ASFA also welcomes the announcement by the Assistant
Minister for Superannuation Jane Hume, confirming that the
Government will proceed with the deferral of the extension of
SuperStream to SMSF rollovers from 30 November 2019 to 31 March
2021 (01 July 2019 ).
More...
SMSF rollovers in SuperStream to be deferred
The Morrison Government is proceeding with the deferral of
the extension of SuperStream to self-managed superannuation fund
(SMSF) rollovers from 30 November 2019 to 31 March
2021 (28 June 2019).
More...
New measures to protect your superannuation: commencing 1
July 2019
Commencing on 1 July 2019, the Protecting Your
Superannuation Act will safeguard Australians' superannuation
savings from excessive fees, unnecessary insurance and the costs of
inadvertently holding multiple superannuation accounts (28 June
2019).
More...
ASIC 'fees-for-service' bill passes
The government has passed legislation that will see fees
for ASIC's licensing services increased to better reflect the
regulator's "actual costs", according to Minister for
Revenue and Financial Services Kelly O'Dwyer. The so-called
'fees-for-service' bill accompanies the industry funding
legislation, which was passed on 15 June 2017 and requires
regulated entities to pay an annual levy (28 June 2019).
More...
In practice and courts
ASIC Information Sheet 240 AFS licensing –
Requirements for certain applicants to provide further
information
This provides guidance to applicants on recent changes to
ASIC's Australian financial services (AFS)
licensing assessment procedures. These changes apply to: applicants
that are proposing to offer certain financial services or to
operate in specific circumstances (05 July 2019).
More...
New prices for ASIC regulatory services
The fees ASIC charges for specific regulatory activities
have changed to reflect the actual cost to ASIC associated with the
work. In most cases this has resulted in a fee increase. The
Government passed required legislation on 28 June 2018. New pricing
is effective 4 July 2018. ASIC's 'fees for service'
impact a range of industry stakeholders including Australian credit
licensees, Australian financial services (AFS)
licensees, market infrastructure providers, responsible entities,
registered liquidators, and companies (06 July 2018).
More...
ASIC: New regime for corporate whistleblower protections
commences 01 July
To provide guidance to whistleblowers on their rights and
protections and how ASIC handles their reports, ASIC has updated
information on our website and issued two new information
sheets:
Information Sheet 238 Whistleblower rights and protections (
INFO 238)
Information Sheet 239 How ASIC handles whistleblower reports (
INFO 239)
(01 July 2019)
Reminder: Reforms to the corporate whistleblower
protection regime
From 1 July 2019, the whistleblower protections in Part
9.4AAA the Corporations Act 2001 (Corporations Act) will
be expanded to provide greater protections for whistleblowers who
report misconduct about companies and company officers. The reforms
are contained in the Treasury
Laws Amendment (Enhancing Whistleblower Protections) Act
2019, Check out Your Call's Whistleblower
Policy Review Checklist for best practice and good governance
regarding whistleblowing programs.
AASB invitation to comment
ITC 40 Financial Instruments with Characteristics of Equity
– The International Accounting Standards Board has recently
published Discussion Paper DP/2018/1 Financial Instruments with
Characteristics of Equity. Submissions to the IASB were due by
7 January 2019.
More...
IASB proposed amendments to IFRS 3 Business
Combinations
The amendments would update a reference to the
Conceptual Framework for Financial Reporting without changing the
accounting requirements for business combinations. IFRS 3 specifies
how a company should account for the assets and
liabilities it acquires when it obtains control of a business. View
the
Exposure Draft Reference to the Conceptual Framework.
Submit your comment letters
here. Comments close on 27 September 2019.
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
were due to sunset on 27 September 2018, will be extended until 30
September 2019 while we consult with stakeholders. SIC invites
submissions on
CP 301 by 31 July 2018.
Reminder: APRA prepares for new laws granting approval
powers for changes in control of superannuation licensees
APRA has released for consultation a draft form and guide
for applications to acquire a controlling stake in a registrable
superannuation entity (RSE) licensee. From 5 July,
any party seeking to acquire greater than a 15 per cent stake in an
RSE licensee must apply to APRA for approval).
More...
Here's how super is changing on July 1
explainer
Big changes to superannuation regulations were passed
through parliament earlier this year and are set to come into
effect in the next few weeks. Super funds should have contacted you
about the changes but if you want to know more, read about the new
rules
here.
AASB: Fatal-Flaw Review Draft: Proposed Standard
Amendments to Australian Accounting Standards –Implementation
of AASB 1059
This proposed Standard would amend the transitional relief
available to grantors when implementing AASB 1059 Service
Concession Arrangements: Grantors. Comments were due 17 July 2019.
More...
Exposure Draft ED 289: Annual Improvements to Australian
Accounting Standards 2018–2020
ED 289 proposes to amend AASB 1 First-time Adoption of
Australian Accounting Standards, AASB 9 Financial Instruments, AASB
16 Leases and AASB 141 Agriculture. Annual improvements are limited
to changes that either clarify the wording in the Standard or
correct relatively minor unintended consequences, oversights or
conflicts between requirements in the Standards. Submit your
comments to the AASB by 31 July 2019 via the AASB website
here.
ASIC CP 300 Approval and oversight of compliance schemes
for financial advisers
The proposals in CP 300 Approval and oversight of
compliance schemes for financial advisers are outline
here. We intended to release a regulatory guide setting out our
final policy by the end of September 2018.
FSC Submissions
02 July 2019 -
FSC Submission - Proposed Revisions to Prudential Standard SPS 515
- 30th May 2019
AFCA consults on rule changes to identify financial
firms in published determinations
AFCA has drafted changes to Rule A.14.5 that will enable
us to identify financial firms in published determinations. This
will apply to determinations issued after the changes take effect,
subject to the changes being approved by ASIC. It is anticipated
that the Rules will be released after 1 July 2019. More...
Australian Financial Complaints Authority (AFCA)
reminder
From 1 July 2019, Australian consumers and small business
will be able to lodge complaints with AFCA about the conduct of
financial firms dating back to 1 January 2008. AFCA will accept
complaints from 1 July 2019 and follow the usual practice of
referring them back to the financial firms to resolve them.
Current AFCA matters – July 2019
Digital
Rebl Pty Ltd and Media Rebl Pty Ltd
Forex
Capital Trading Pty Ltd
AGM
Markets Pty Ltd
Berndale
Capital Securities Pty Ltd
Bestjet
Travel Pty Ltd (Bestjet)
Viewble
Media and The Shoppers Network
ISA reports
10 July 2019 -
UMR Stapling Report - Views on the Stapling of Default
Funds
Gazette - Superannuation Industry
(Supervision) Act 1993
11/07/2019
Notice of Disqualification - Antonio De Luca; Aldo De
Luca
04/07/2019
Notice of Disqualification - Renee Mengler
02/07/2019
Notice of Disqualification - Dale Cooper
Cases
The Sharemarket College Pty Ltd and Australian Securities
and Investments Commission [2018] AATA
1969
CORPORATIONS – cancellation of Australian Financial
Services Licence – whether breaches of conditions of
Australian Financial Services Licence – banning order from
providing financial services – breaches of financial services
laws – telemarketing – email marketing – where
systemic failures in compliance regime – ill-health
mitigating factor.
Anderson v Patersons Securities Ltd
[2019] NSWSC 852
COSTS — Security for costs — Relevant factors
– whether the jurisdiction to make an order for security for
costs pursuant to r 42.21(1)(a) of the UCPR is enlivened
–whether as a matter of fact the plaintiff is not ordinarily
resident in Australia
COSTS — Security for costs — Relevant factors –
whether in the exercise of the Court's inherent jurisdiction or
pursuant to r 42.21(1)(e) of the UCPR the discretion to award
security of costs should be exercised in favour of the defendants
– consideration of the plaintiff's impecuniosity, delay
and costs
The first defendant, Patersons Securities Ltd (Patersons), is a
stockbroking and financial services firm
Carpenders Park Pty Ltd (as trustee of the Carpenders Park
Pty Ltd Staff Superannuation Fund) v Sims Metal Management
Limited [2019] FCA
1040
PRACTICE AND PROCEDURE – representative proceeding
under Part IVA of the Federal Court of Australia Act 1976
(Cth) – application for common fund order – where
notices sent to all potential group members – where no
effective objection received – where funder proposed interim
common fund order with cap on its commission of a maximum of 25% of
net proceeds after paying lawyers' costs and deferred costs
subject to later order – whether interim order with cap
creates any expectation of later exercise of discretion under s
33ZF of the Federal Court Act to make final common fund order with
same cap at conclusion of proceeding – whether Court should
approve common fund order on such terms
Dimitropoulos and Australian Securities and Investments
Commission [2019] AATA
1775
PRACTICE AND PROCEDURE – Administrative Appeals
Tribunal Act s 37(2) – application for notice requiring
lodgement of witness statement instructions and draft witness
statement – general assertions of relevance to witness credit
– scope of the "may be relevant" criterion –
relevance of decision maker's obligation to lodge relevant
documents – discretion not to require lodgement of
potentially relevant documents
Administrative Appeals Tribunal Act 1975 (Cth) ss 33, 35,
37, 38AA, 40B
Corporations Act 2001 (Cth) ss 761A, 763A, 766A, 911A,
913B, 920A, 920B, 1311
Freedom of Information Act 1982 (Cth)
National Consumer Credit Protection Act 2009 (Cth) ss 80,
81, 253, 259 (h) during the client interviews the sales consultants
would obtain details of the client's financial position,
including details of their current superannuation balances.
Depending on the amount of those balances, the sales consultants
would go through the "presentation" document, and the
house and land contracts, with the client. Often clients would
agree to the SMSF establishment and property purchase proposal
during such an initial interview, and would complete the kind of
authority forms
Jacobs and Commissioner of Taxation
(Taxation) [2019] AATA
1726
TAXATION – superannuation excess transfer balance
tax liability – whether discretion to waive – decision
under review affirmed. Superannuation (Excess Transfer Balance
Tax) Imposition Act 2016 (Cth)
HILL v ZUDA PTY LTD as trustee for HOLLY SUPERANNUATION
FUND [2019] WASC
238
Practice and procedure - Application for pre-action
discovery - Turns on own facts
Rules of the Supreme Court 1971 (WA)
Superannuation Industry (Supervision) Act 1993 (Cth)
Superannuation Industry (Supervision) Regulations 1994 (Cth)
Legislation
Commonwealth
Treasury
Laws Amendment (Putting Members' Interests First) Bill
2019
Introduced HR 04/07/2019 - A Bill for an Act to amend the
law relating to superannuation, and for related purposes - This
Bill contains amendments to the SIS Act to protect individuals'
retirement savings from erosion, ultimately increasing
Australians' superannuation balances.
Treasury Laws Amendment (2018 Measures No. 2) Bill
2019
HR Introduced and read a 1st time and 2nd time 04/07/2019
- Schedule 1to this Bill amends the Corporations Act 2001
and National Consumer Credit Protection Act 2009 to expand
the regulation-making powers to allow the regulations to provide
for exemptions from the Australian Financial Services Licence and
Australian Credit Licence requirements for the purposes of testing
financial and credit products and services under certain
conditions.
Regulation
Accounting
Standard AASB 2019-1 Amendments to Australian Accounting Standards
– References to the Conceptual
Framework
09/07/2019 – This instrument makes amendments to
Australian Accounting Standards, Interpretations and other
pronouncements to reflect the issuance of the Conceptual Framework
(Conceptual Framework) by the Australian Accounting Standards
Board.
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.