In the media
Consumers ripped off by banks, credit card companies and
insurance companies claw back $185m
The Australian Financial Complaints Authority is receiving
an average 200 complaints per day from Australian consumers (01
November 2019).
More...
$185 million in compensation awarded to consumers in
AFCA's first 12 months
The Australian Financial Complaints Authority is today
celebrating 12 months since it opened its doors as the nation's
one-stop-shop for complaints about financial firms (01 November
2019).
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Australian Government to review retirement income
system
The Australian Government has established of an
independent review of the retirement income system so as to ensure
Australians are well-supported during their retirement. The Review
will examine the means tested age pension, compulsory
superannuation and voluntary savings, including home ownership, and
consider the role of each in supporting Australians in their
retirement (31 October 2019).
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ASIC takes civil penalty action against RI Advice and
former Melbourne financial adviser, John Doyle: Royal Commission
case study
ASIC alleges RI Advice knew, or should have known, that
there was substantial risk Mr Doyle was not complying with his
obligations under the law and was repeatedly recommending
structured products to his clients, bypassing compliance processes
(30 October 2019).
More...
ASIC warns trustees on new rules for putting
members' interests first
ASIC has called on superannuation trustees to improve the
standard of communication to fund members about important reforms
impacting member insurance arrangements (30 October 2019).
More...
ASIC extends relief for portfolio holdings
disclosure
ASIC has amended ASIC Class Order [CO 14/443] to provide
legal certainty about the first reporting day for portfolio
holdings disclosure, given the regulations setting out the required
disclosures have not yet been made (29 October 2019).
More...
FSC media release FSC releases guide to help stop elder
financial abuse
The Financial Services Council (FSC)
Guide on the Prevention of Elder Financial Abuse (The Guide) was
launched today signalling an important step by the financial
services sector towards ending the financial abuse of older
Australians (29 October 2019).
More...
ASIC wins appeal against Westpac companies
In a fresh blow to Westpac, the Federal Court delivered
the corporate regulator a win in its appeal against a previous
ruling on Westpac's telephone campaigns. The corporate
regulator claimed that the two Westpac companies had breached their
FoFA-stipulated best interest duty by advising rollovers to
Westpac-related super funds without a proper comparison of options,
as required by law (28 October 2019).
More...
ASIC imposes additional licence conditions on IOOF
Investment Services Ltd to improve governance and conflicts
management
ASIC has imposed additional licence conditions (relating
to the governance, structure and compliance arrangements) on the
Australian financial services (AFS) licence of
IOOF Investment Services Ltd (IISL) as part of an
application by IISL to vary its licence (28 October 2019).
More...
Unclaimed money and lost members regulations
AIST welcomes the release of the draft regulations
ensuring the ongoing operation of the lost and unclaimed money
regime for certain superannuation products. AIST raised concerns
that there is insufficient clarity in the Regulations on how
members that have previously made a severe hardship claim should be
treated by an RSE licensee and has called for more guidance in this
area (25 October 2019).
More...
Update to Code of Ethics guidance release
Further to the recent (18 October 2019) release of FG002
Guidance to the Code of Ethics, the Financial Adviser Standards and
Ethics Authority wishes to confirm the first consultation with
designated representatives of consumer, professional, education and
other industry groups commence November 12, 2019 (24 October 2019).
More...
Strong consumer response to 'protecting your
super' changes
Commenting on the survey results, ASFA Deputy CEO and
Chief Policy Officer, Glen McCrea said, the high opt-in rate shows
the value that people place on having insurance as part of their
superannuation, and that Australians take these insurance changes
seriously. The paper, released today, also looks at the potential
impact of the upcoming Putting Members' Interests First
(PMIF) changes which will take effect on 1 April,
2020 (21 October 2019).
More...
New accounting rule 'gives more transparency':
EY
More financial details over how an insurer performed can
be expected when the International Accounting Standards Board's
new IFRS 17 rule kicks in, according to global audit firm EY (21
October 2019).
More...
The age of disclosure is over
Financial services product disclosure laws have failed to
protect consumers as intended, a study by the Australian Securities
and Investments Commission (ASIC) has found.
Insurance featured in several of the 33 case studies that ASIC
examined in the joint report with the Dutch Authority for the
Financial Markets (21 October 2019).
More...
In practice and courts
ASIC Class Order [CO 14/443] Reporting dates
The amendments made to CO 14/443 defer the first reporting
day to 31 December 2020. This will allow further time for
Government to develop and make the regulations. It also provides
industry with certainty about the commencement date and time to
finalise their reporting processes and disclosures. More...
Implementing the protecting your super changes and
putting members' interests first
Ross Clare Director of Research, ASFA: released 21 October
2019
Based on the responses from the survey, an estimated three million
accounts in total were liable to lose insurance cover on 1 July as
a result of the changes. There was an average opt-in rate for
insurance cover of just over 16 per cent of those affected.
More...
AIST policy news - 30 October 2019
30 October 2019 - ASIC warns on insurance communications |
APRA data | life expectancy on the rise & more.
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FASEA Code of Ethics and Guide reminder
The Code of Ethics that is applicable to the conduct of
all advisers who provide financial services to retail clients.
Compliance with the Code which comprises five (5) values and twelve
(12) Standards will come into effect on 1 January 2020. To assist
stakeholders in understanding, interpreting and applying the Code,
FASEA is releasing a Code of Ethics guide.
More...
FASEA
FASEA have announced that registrations are now closed, 31
May 2019 for financial advisers to notify their intention to sit
the FASEA exam. What you need to know (October 2019).
More...
IFRS compilation of 2019 agenda decisions has been
published
The IFRS Foundation's first biannual Compilation of
Agenda Decisions brings together agenda decisions published by the
IFRS Interpretations Committee from January to September, 2019.
Future compilations will be published twice a year (April and
October). You can view them
here (23 October 2019).
IFRS: Interest-rate benchmarks amendments
Amendments issued focus on the accounting effects of
uncertainty in the period leading up to the reform. The amendments
come into effect from 1 January 2020 but companies may choose to
apply them earlier.
Interest Rate Benchmark Reform, which amends IFRS 9, IAS 39 and
IFRS 7, can be accessed here (subscription required).
A project summary, providing further information about the
Board's work in relation to IBOR reform, is also available.
ASIC consultation: foreign financial services providers
relief proposals
ASIC has extended to 31 March 2020 licensing relief for
foreign financial services providers (FFSPs) to
allow them to provide certain financial services to Australian
wholesale clients without needing to hold an Australian financial
services licence.
More...
Proposed amendment to Chapter 11 of the AML/CTF Rules
(Compliance Report – reporting and lodgment periods)
AUSTRAC has released proposed amendments to Chapter 11 of
the AML/CTF Rules for public consultation.
The proposed amendments remove references to the 2018 reporting and
lodgment periods and sets those periods for 2019 and each
successive year. The consultation period for these amendments is
open until 12 November 2019.
More...
APRA: Consultation on directions for integrating AASB 17
into the capital and reporting frameworks for insurers - Round
1
The September 2019 consultation outlines APRA's
proposed directions for integrating AASB 17 into the prudential
capital and reporting frameworks for insurers, and an update on the
policy development timeline. APRA is also requesting information
from all insurance entities on their preparedness for AASB 17.
Submissions will be received until 22 November 2019.
More...
AASB Invitation to Comment
ITC 40Financial Instruments with Characteristics of
Equity– The International Accounting Standards Board has
recently published Discussion Paper DP/2018/1Financial Instruments
with Characteristics of Equity. Submissions to the IASB are were by
7 January 2019.
More...
ATO: Proposed Superannuation Guarantee amnesty
The proposed Superannuation Guarantee (SG) Amnesty (the
proposed amnesty) and re-introduced the associated legislation into
Parliament. Until the proposed amnesty law is enacted by
Parliament, ATO will continue to apply the existing law to the
SGC statements you lodge. For more information see
here.
Gazette - Superannuation Industry (Supervision) Act 1993
31/10/2019
Notice of Disqualification - Melita Doneva, Zoran
Donev
29/10/2019
Notice of Disqualification - Warren McKean; Andrew Mururi;
Tecla Mururi; Raeleen M Logan; Nicholas Alexander Logan; Simone
Frankeni
25/10/2019
Notice of Disqualification - Sharlene Seiuli
Cases
TPT Patrol Pty Ltd as trustee for Amies Superannuation Fund
v Myer Holdings Limited [2019] FCA
1747
CORPORATIONS – representative proceeding –
listed securities – continuous disclosure obligations –
ASX listing rule 3.1 – failure to disclose material
information to market – forecast of net profit after tax
– absence of reasonable grounds – failure to correct
forecast – concept of "information" under listing
rules – concept of "awareness" under listing rules
– contravention of s 674 of Corporations Act 2001 (Cth)
– misleading or deceptive conduct relating to securities
– contravention of s 1041H of Corporations Act –
availability of market based or indirect causation theory –
loss and damage.
Angela Cecila Theresa Frigger and Hartmut Frigger in their
capacities as trustees of the Frigger Superannuation Fund v Mervyn
Johnathon Kitay in his Capacity as Liquidator of Computer
Accounting & Tax Pty Ltd (In Liquidation)
[No 15] [2019] WASC 384
Practice and procedure - Where action stayed due to
plaintiffs' bankruptcy - Whether new plaintiff can be
substituted
Hartmut Hubert Josef Frigger and Angela Cecilia Theresa Frigger
bring this action in their personal capacities and, as the second
plaintiff, in their capacity as trustees of the Frigger
Superannuation Fund.
Pursuant to s 126J(1)(b) of the Superannuation Industry
(Supervision) Act 1993 (Cth), each of the Applicants is not a
disqualified person in relation to the Company and the Frigger
Super Fund.[1]
Australian Securities and Investment Commission v Westpac
Securities Administration Limited [2019]
FCAFC 187
CORPORATIONS – where Westpac conducted campaign to
encourage customers to roll over funds held in external
superannuation accounts into their existing Westpac accounts
– whether Westpac's campaign involved the provision of a
"recommendation" or "statement of opinion"
amounting to "financial product advice" – whether
Westpac's campaign involved the provision of "personal
advice" or "general advice" within the meaning of s
766B of the Corporations Act 2001 (Cth) (the Act) – where
primary judge found that Westpac provided general financial product
advice – "personal advice" was given because a
reasonable person might expect the callers to have considered the
objectives of the customers in making the recommendation to accept
the rollover service – consequent contraventions of ss
912A(1)(b) and (c), 946A, 961B(1) and 961K(1) of the Act –
appeal allowed
CORPORATIONS – whether Westpac failed to do all things
necessary to ensure financial services provided "efficiently,
honestly and fairly" – where primary judge found
contraventions of s 912A(1)(a) of the Act – Westpac did not
act efficiently, honestly, or fairly in conducting a campaign with
the aim of getting its customers to make a decision after the
provision of only "general advice" where that decision
could only prudently be made having regard to information personal
to the customers and the superannuation accounts – whether,
if Westpac had been found to have given only "general
advice", an alternative case on s 912A(1)(a) was run before
the primary judge – no alternative case articulated because
the case before the primary judge was predicated on the likelihood
or fact of "personal advice" – cross-appeal
dismissed
GYBW and Commissioner of Taxation (Taxation)
[2019] AATA 4262
TAXATION – complying superannuation fund –
taxation of superannuation entities – dividends from a
company – whether a non-arm's length relationship exists
– where dividends paid according to shares held but whether
transition of acquisition was non-arm's length – whether
the value of the shares was nil or nominal – future cash
flows – penalties – failure to take reasonable care
– safe harbour provisions – voluntary disclosure
– shortfall interest
The written advice from the law firm dated some 10 months later, 28
March 2012, was in evidence before the Tribunal.[13] The advice is
expressed to concern whether the acquisition of shares by the
trustee of Mr D's self-managed superannuation fund complied
with the laws governing superannuation and, in particular, the
Superannuation Industry (Supervision) Act 1993 .
Frigger, in the matter of an application by
Frigger [2019] FCA
1730
CORPORATIONS - application for leave to manage corporation
under s 206G(1) Corporations Act 2001 (Cth) - application for order
that applicants not disqualified persons under s 126J(1)(b)
Superannuation Industry (Supervision) Act 1993 (Cth) - discussion
of circumstances giving rise to applicants' disqualification -
factors in favour of granting application - possible risk of
corporation being drawn into substantial volume of litigation -
application granted subject to condition
Bankruptcy Act 1966 (Cth) s 149; Corporations Act 2001 (Cth) ss
201B, 206A, 206B, 206G, 206GAB, Part 2D.6
Legislation
Commonwealth
Treasury
Laws Amendment (Ending Grandfathered Conflicted Remuneration) Act
2019
29/10/2019 - Act No. 87 of 2019
Treasury
Laws Amendment (2019 Tax Integrity and Other Measures No. 1) Act
2019
31/10/2019 - Act No. 95 of 2019 -
Schedule 7—Salary sacrifice integrity - Superannuation
Guarantee (Administration) Act 1992
Treasury Laws Amendment (2019 Measures No. 2) Bill
2019
Assent Act no: 94 Year: 2019 28 October 2019 - Amendments
include: Income Tax Assessment Act 1997 to extend the concessional
tax treatment for genuine redundancy and early retirement scheme
payments made to individuals who are 65 years or older provided the
dismissal or retirement occurs before they reach pension age;
Superannuation (Unclaimed Money and Lost Members) Act 1999 to
enable the Commissioner of Taxation to pay interest on amounts held
by the commissioner that are proactively reunified with a
person's active superannuation account; and Superannuation
(Unclaimed Money and Lost Members) Regulations 1999 to prescribe
the rate of interest payable on inactive low balance accounts and
amounts proactively reunified by the commissioner.
Regulation
Treasury
Laws Amendment (Professional Standards Schemes No. 2) Regulations
2019
22/10/2019 - These regulations amend the Australian
Securities and Investments Commission Regulations 2001, the
Competition and Consumer Regulations 2010 and the Corporations
Regulations 2001 to update the list of prescribed professional
schemes that have capped civil liability for misleading and
deceptive conduct under the Australian Securities and Investments
Commission Act 2001, the Competition and Consumer Act 2010 and the
Corporations Act 2001 to provide consistency across Commonwealth
and State and Territory laws.
NSW
Regulations and other miscellaneous instruments
Referable
Debt Order (2019-528) — published LW 1 November 2019
Victoria
Acts
Superannuation Legislation Amendment Act 2019
Act Number: 36/2019 Date of assent: 22 October 2019
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.