Australia: Inside track: Superannuation, Funds Management & Financial Services - In the media, in practice and courts, cases and legislation

Last Updated: 2 August 2019
Most Read Contributor in Australia, August 2019

In the media

Deeming rate calculations should be independent: Poll
The majority of Financial Standard's readership agrees the calculation of deeming rates should be appointed to an external, independent body (25 July 2019). More...

Rising SMSF establishment balances 'strong evidence' advice improving
There has been a sharp increase in the average and median establishment balances for self-managed super funds (SMSFs) – clear evidence that the quality of advice to the SMSF sector is improving and the key takeaway from the SMSF Association's Review of the Australian Tax Office's SMSF Statistical Overview 2016-17 (24 July 2019 ). More...

No areas in need of urgent work: AustralianSuper
AustralianSuper has released their self-assessment and has found that while work is required across the organisation no areas are in need of urgent work. AustralianSuper confirmed it did not have any divisional chief risk officers, a role that is found in many financial institutions to help manage risk (24 July 2019). More...

Celebrity financial planner Sam Henderson given three-year ban by ASIC
High-flying financial planner Sam Henderson has been rubbed out of the industry, with regulator ASIC slapping a three-year ban on him providing financial services (24 July 2019). More...

FPA launches new My CPD learning solution for members
The Financial Planning Association of Australia (FPA) has launched its new My CPD solution that allows members to plan, access and track their Continuing Professional Development (CPD) on the FPA Learn online education platform (23 July 2019). More...

APRA's tough new proposals on executive remuneration
The boards of financial services companies, including some superannuation funds, will have up to four years to recover remuneration from recalcitrant senior executives, under new proposals put forward today by the Australian Prudential Regulation Authority (APRA)( 23 July 2019). More...

ASIC acts against SMSF auditor misconduct
ASIC has acted to disqualify or add conditions to the registration of a number of auditors of self-managed superannuation funds (SMSFs) (22 July 2019). More...

APRA backs dedicated super division
While the Federal Government opted to close down the separately-mandated Superannuation Complaints Tribunal (SCT), the Australian Prudential Regulation Authority (APRA) has signalled it is prepared to establish a separate division to cover regulation of superannuation (18 July 2019). More...

FSC Response to APRA Capability Review
The Financial Service Council (FSC) welcomes APRA's commitment to improving the quality of superannuation data it collects and publishes. The FSC has long called for more transparent and comparable data on superannuation products (17 July 2019 ). More...

APRA Capability Review recommendations require careful consideration
The Association of Superannuation Funds of Australia (ASFA) says that while delivering the best retirement outcomes for fund members is the top priority, care should be taken in implementing the recommendations made by the APRA Capability Review panel, to avoid long term risks, costs and poorer outcomes for superannuation members (17 July 2019). More...

Frydenberg rules out super draw-down changes
The Government may have signalled its preparedness to move on reducing deeming rates but it is not prepared to move on superannuation draw-down rates for those aged over 65 (16 July 2019). More...

AFCA delivers $83m win for consumers and small business
Australian consumers and small businesses with financial complaints have collected over $83 million through AFCA in its first six months of operations (15 July 2019). More...

Finance watchdog finds $83M for consumers
The AFCA has marked its first six months of operating by claiming it has collected over $83 million for consumers and small businesses who approached it with financial complaints. The report shows that banks received the most complaints of all financial institutions (12,305) (18 July 2019 ). More...

Union demands government action on credit insurance
The Finance Sector Union of Australia has urged government action on consumer credit insurance and bank cultural issues following ASIC's report into the sale of the products. The watchdog's findings published last week deemed consumer credit insurance (CCI) as "extremely poor value for money" and sales practices caused consumers harm (16 July 2019). More...

Canary in the coal mine': Complaints over big four banks inundating finance watchdog
In its first six-month report, the Australian Financial Complaints Authority said 67 per cent of all complaints received related to the four major banks (15 July 2019). More...

Politicians dishonest about fraud: VOFF
Victims of Financial Fraud (VOFF) hit out at the Labor Party's treatment of the Trio fraud, claiming Australian politicians are "dishonest" when it comes to handling fraud conduct (15 July 2019). More...

Council of Financial Regulators discreetly updates charter
The Council of Financial Regulators has updated its charter for the first time since the council was established in 2004. Of note is the inclusion of the requirement to coordinate engagement with the work of financial institutions, forums and regulators (12 July 2019). More...

Uncertainty' over super as BlueScope workers miss out on 'millions' in back pay
A full Federal Court decision to deny BlueScope workers' superannuation back pay claims could have major implications for other companies whose employees are on industrial awards, experts warn (12 July 2019). More...

In practice and courts

Australian Prudential Regulation Authority capability review
Graeme Samuel, Diane Smith-Gander, Grant Spencer; Department of the Treasury (Australia)
This review was recommended by the Hayne Royal Commission. The damaging revelations revealed during the Commission's inquiry have had a profound impact on the community. Trust in the financial system and its regulators has diminished (15 July 2019). More...

AFSA reminder: Annual Administration Returns 2018-19
The AAR deadline for 2018-19 is approaching, and practitioners are reminded of their obligation to lodge a completed AAR and pay the applicable realisations and interest charge. This means that Annual Administration Returns (Annual Estate Returns) for 2018–19 must be filed by 2 August 2019. Realisations charge and interest charge payments for 2018–19 will be due and payable by 5 August 2019. More...

ASFA Submission to the Senate Economics Legislation Committee
ASFA response to the inquiry into the Treasury Laws Amendment (Putting Members' Interests First) Bill 2019 (15 July 2019). More...

SMSF Association review of the Australian Taxation Office's SMSF Statistical Overview 2016-2017
The SMSF Association has released their review of the Australian Taxation Office's 2016-17 statistical overview of SMSFs. It reveals a sector that has not only performed well but provides a positive outlook for its future growth and strong performance (24 July 2019). More...

AIST: Putting Members' Interests First Bill
AIST submits that in its current form the proposed Treasury Laws Amendment (Putting Members' Interests First) Bill 2019 would be significantly detrimental to members and would undermine trust in the superannuation system (15 July 2019). More...

AASB: Exposure Draft: ED 292 Amendments to AASB17
ED 292 proposes targeted amendments to AASB 17 Insurance Contracts relating to the following topics: scope exclusions—credit card contracts and loan contracts that meet the definition of an insurance contract. The Exposure Draft also proposes to defer the effective date of AASB 17 by one year to annual reporting periods beginning on or after 1 January 2022, as well as extending the AASB 9 Financial Instruments temporary exemption in AASB 4 Insurance Contracts by one year. Comments to the AASB are due by 30 August 2019, click here for further information.

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 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 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 were due 31 July 2018.

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.

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. More...

FSC Submissions
02 July 2019 - FSC Submission - Proposed Revisions to Prudential Standard SPS 515 - 30th May 2019

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

23/07/2019
Notice of Disqualification - Maree Hynes; Thomas Hynes

19/07/2019
Notice of Disqualification – Janeen Wilson

Cases

Finance Sector Union of Australia v Unimoni Pty Ltd [2019] FCA 1128
INDUSTRIAL LAW – principles of construction of eligibility rules of a union
INDUSTRIAL LAW – principles of construction of award
EVIDENCE – relevance of expert opinion as to the construction of rules of an organisation – relevance to the construction of an industrial award
Rule 5 - It is rule 5 of the Finance Sector Union Rules which sets forth "Conditions of Eligibility for Membership" of the Finance Sector Union. Of primary relevance is the phrase "all employees in or in connection with the finance industry in Australia and/or in connection with the businesses and/or industries of financial intermediaries or financial services in Australia.

Shmuel and Tax Practitioners Board [2019] AATA 2168
Applicant's registration as tax agent cancelled – failure to comply with personal tax obligations – failure to disclose bankruptcy – failure to respond to Tax Practitioner Board enquiries - fit and proper person – professional code of conduct – consideration of personal circumstances - decision affirmed

Adams v Navra Group Pty Ltd [2019] FCA 1157
PRACTICE AND PROCEDURE – Representative proceedings – whether leave to discontinue should be granted – Federal Court of Australia Act 1976 (Cth) s 33V
The statement of claim alleges that Navra: (a) failed to exercise the skill and care of an experienced provider of financial services with regards to the identification of factors such as risk and investment suitability;

Mazany v The trustee for Cesar's Pizzeria Trading Trust & Coelho [2019] SAET 141
Pecuniary penalties - Contraventions regarding unpaid superannuation contributions and pay slips – Second respondent was the Trustee and admitted to being a person knowingly involved in all contraventions - Held: Pecuniary penalty of $3,960 imposed on Trustee for Superannuation contraventions and of $1,650 for pay slip contraventions – Pecuniary penalty of $3,960 imposed on second respondent for Superannuation contraventions and of $1,650 for pay slip contraventions

Legislation

Commonwealth

Acts Compilation

Superannuation Industry (Supervision) Act 1993
25/07/2019 - Act No. 78 of 1993 as amended - The main object of this Act is to make provision for the prudent management of certain superannuation funds, approved deposit funds and pooled superannuation trusts and for their supervision by APRA, ASIC and the Commissioner of Taxation

Corporations Act 2001
15/07/2019 - Act No. 50 of 2001 as amended, taking into account amendments up to Treasury Laws Amendment (Design and Distribution Obligations and Product Intervention Powers) Act 2019. An Act to make provision in relation to corporations and financial products and services, and for other purposes

Regulation

Australian Prudential Regulation Authority (confidentiality) determination No.1 of 2019
17/07/2019 – This instrument prescribes information provided by general insurers and Lloyd's underwriters for the purposes of the National Claims and Policies Database under Reporting Standard GRS 800.1, GRS 800.2, GRS 800.3, LOLRS 800.1, LOLRS 800.2 and LOLRS 800.3

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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