In the media

ASIC cancels AFS licence of Perth-based Platinum Perpetual Global Private Wealth
ASIC has cancelled the Australian financial services licence of Platinum Perpetual Global Private Wealth Pty Ltd, based in Perth (AFSL 508415). It is alleged by WAPF that the advisor misappropriated approximately $948,236.96 of clients' funds without authority to do so (04 September 2019). More...

Suncorp completes Guardian Advice remediation program
Suncorp Life and Superannuation Limited (Suncorp) has recently completed a remediation program, which impacted over 4,000 clients of Suncorp-owned GuardianFP Limited (Guardian Advice). Suncorp paid $1,431,167 in compensation to Guardian Advice clients who had received poor advice (04 September 2019). More...

ACCC finds consumers are paying too much in foreign transaction fees
This is the first report of its kind released by the ACCC that finds Australians are paying too much for foreign currency conversion services, particularly for international money transfers, and the main beneficiaries are the major banks (02 September 2019). More...

29 financial firms breach AFCA member requirements
The Australian Financial Complaints Authority has named 29 financial firms who have failed to pay complaint-related charges, breaching AFCA membership requirements (02 September 2019). More...

FASEA transition extension welcome, says CPA Australia
CPA Australia has welcomed and said it supports the Federal Government's announcement of an extension to the transition period for registered financial advisers to meet the examination and education requirements of the new standards (31 August 2019 ). More...

Reforms to professional standards for financial advisers
The Morrison Government is committed to restoring trust and confidence in Australia's financial system, as part of its plan for a stronger economy. A key part of this is ensuring we continue to build trust in financial advice as a true profession (30 August 2019). More...

FSC welcomes extended transition to Professional Standards
The Financial Services Council (FSC) welcomed the Morrison Government's decision to extend the transitional provisions for the new education requirements that have been set for the industry (01 September 2019). More...

Government extends FASEA deadlines
Exam deadline extended by 12 months to 1 January 2022 and education deadline extended by 24 months to 1 January 2026. The FPA welcomes the Government's announcement that it will give existing financial planners more time to pass the Financial Adviser Standards and Ethics Authority (FASEA) exam (30th August 2019). More...

Reforms to professional standards for financial advisers
The Government has already implemented or is taking action on several reforms that aims to improve the quality of financial advice, eliminate misconduct in the financial advice industry, including the establishment of the Financial Adviser Standards and Ethics Authority (FASEA) (30 August 2019). More...

ASIC/APRA focus on super underperformance
Just a day after the Australian Securities and Investments Commission (ASIC) signalled a tough approach on super fund underperformance, the Australian Prudential Regulation Authority (APRA) has sent a similar message to the sector (29 August 2019). More...

APRA releases 2019-2023 Corporate Plan
The Australian Prudential Regulation Authority (APRA) has published its updated Corporate Plan with a sharpened focus on regulating non-financial risks and improving outcomes for superannuation members (29 August 2019). More...

APRA finalises revised measures to strengthen outcomes for superannuation members
The Australian Prudential Regulation Authority (APRA) has finalised changes to its requirements for how superannuation licensees assess the outcomes they are delivering to their members (28 August 2019). More...

Bundaberg financial adviser banned for four years
ASIC found that Mr Goudie failed to comply with financial services laws including the requirement to comply with the best interests duty and to prioritise his clients' interests (27 August 2019). More...

FASEA extends education credits for FPA CFP coursework
The FPA is delighted to announce that its application to the Financial Adviser Standards and Ethics Authority (FASEA) to extend recognition of the CERTIFIED FINANCIAL PLANNER® coursework prior to 2003 has been approved (27 August 2019). More...

Fairer outcomes for consumers with new ASIC power
The Australian Financial Complaints Authority has strongly welcomed ASIC's new product intervention power in a submission (27 August 2019). More...

Taking action on the Financial Services Royal Commission
The Morrison Government is releasing exposure draft legislation today that will improve outcomes for consumers by introducing a best interests duty for mortgage brokers and reforming mortgage broker remuneration. The exposure draft legislation is available on the Treasury website (27 August 2019). More...

Consumers see value in financial advice, but lack of trust remains an issue
New ASIC consumer research released today reveals the barriers faced by consumers when considering financial advice (26 August 2019). More...

ASIC approves AFCA rule change enabling the naming of firms
ASIC has approved changes to the Australian Financial Complaints Authority (AFCA) Rules to allow the scheme to name financial firms in published determinations (26 August 2019). More...

AFCA to name financial firms in determinations
The Australian Financial Complaints Authority will begin naming financial firms in its published determinations to increase transparency in the financial sector and enhance consumer confidence (26 August 2019). More...

In practice and courts

APRA Corporate Plan 2019-2023
The Corporate Plan sets out a roadmap for reinforcing APRA's strong track record of safeguarding financial stability, while lifting its capabilities in other key areas to better address emerging and future challenges. The Plan identifies four areas of strategic focus aimed at strengthening outcomes for the Australian community.
The 2019-2023 Corporate Plan comes into effect immediately. The plan is available here (29 August 2019)

APRA superannuation statistics for June 2019
APRA has released its Quarterly Superannuation Performance publication and the Quarterly MySuper Statistics report for the June 2019 quarter (28 August 2019). More...

APRA revised measures to strengthen outcomes for superannuation members
SPS 515 requires all registrable superannuation entity (RSE) licensees to perform an annual Business Performance Review to assess whether they are delivering sound, value-for-money outcomes for members. SPS 515 will come into force from 1 January next year. Copies of the new SPS 515 and SPG 515, Response Letter and draft SPG 516 are available here (28 August 2019). More...

New Australian Standards

AS ISO 20038:2019
Banking and related financial services - Key wrap using AES
Standards Australia AS ISO 20038:2019

FASEA approves education credits for FPA coursework to attain a Professional Designation
The Standards Authority has approved an application for the recognition of coursework to attain a professional designation from the Financial Planning Association (FPA) as part of its education standards for financial advisers (27 August 2019). More...

ASIC's Report: Financial advice: What consumers really think
The report presents independent research into consumer experiences of, and attitudes towards, financial advice and the advice industry. The research focused on the overall use of financial advisers, motivators and barriers to seeking personal advice and consumer attitudes towards the financial advice industry (26 August 2019). More...

Proposal to remove special purpose financial statements for certain for-profit private sector entities (AASB ED 297) – Have your say!
ED 297 Removal of Special Purpose Financial Statements for Certain For-Profit Private Sector Entities is proposing to remove the ability of for-profit large proprietary, unlisted public (other than companies limited by guarantee) and small foreign-controlled companies to publicly lodge special purpose financial statements (SPFS) with ASIC. Comments close 15 November 2019. More...

ASIC consultation: new guidance for companies on whistleblower policies
ASIC is calling for public input on its proposed guidance on the new legal obligation on companies to implement a whistleblower policy, which must be made available to their officers and employees by 1 January 2020. The Proposed Regulatory Guide Whistleblower policies explain how companies can establish, implement and maintain a policy. The consultation comments due by 18 September 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.

AASB: Exposure Draft: Disclosure of Accounting Policies
ED 296 Disclosure of Accounting Policies proposes amendments to help entities provide accounting policy disclosures that are more useful to primary users of financial statements. Please submit your comments to the AASB by 28 October 2019 via the AASB website.

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...

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.

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. We intend to release a regulatory guide setting out our final policy by the end of September 2018. More...

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

Gazette - Superannuation Industry (Supervision) Act 1993

06/09/2019
Notice of Disqualification – Manmath Madhusudhan Pandya

04/09/2019
Notice of Disqualification - Victor Bertuzzi; Touanga Laeeatoa; Tupou Otutaha

03/09/2019
Notice of Disqualification - Matthew Bright; Justin Lowke; Linda Bright; Milika Langi; Okusi Langi

29/08/2019
Notice of Disqualification – Taumafa Niupalau; Paula Leaaetoa; Mounga Ofa; a'ata Ofa; Osika Niupalau

26/08/2019
Notice of Disqualification – Valentina Goulopoulos; Andrew John Goulopoulos

Cases

Wilkins and Australian Securities and Investments Commission [2019] AATA 2946
CORPORATIONS – review of banning order prohibiting the applicant from engaging in any credit activities for a period of three years – alleged contravention of prohibition on giving misleading information etc – applicant alleged to have falsely stated loan applicants held funds in investment accounts and had no superannuation fund balance – applicant alleged to have mis-stated the amount claimed to be held in the investment accounts – no proper basis to conclude the applicant knew the amounts in the loan applications were overstated – applicant directly responsible for mischaracterisation of assets – whether applicant knowingly or recklessly provided false information – meaning of "false in a material particular" – decision set aside and substituted
Administrative Appeals Tribunal Act 1975 (Cth) s 43
Superannuation Industry (Supervision) Amendment Act (Cth) Tax Laws Amendment (2007 Measures No. 4) Act 2007 (Cth)

RNB Equities Pty Ltd v Credit Suisse Investment Services (Australia) Limited (No 2) [2019] FCA 1385
PRACTICE AND PROCEDURE – pleadings – interlocutory application by first respondent seeking strike out of parts of the Amended Statement of Claim – alternative claim for further and better particulars – where respondents have not yet filed a defence. Held: interlocutory application dismissed
It would be absurd to suggest that your client's contractual obligations in relation to the provision of financial services and a financial product could relevantly conflict with the conditions under which your client is entitle to provide financial services.

Ariss and Commissioner of Taxation (Taxation) [2019] AATA 2958
TAXATION – income tax – whether trust distributions ordinary income and/or personal services income – whether Part IVA applies – entitlement to income tax deductions – whether Applicant entitled to clerical deductions for income attributed to spouse – whether deductions unreasonable amount paid to a related person – whether Applicant entitled to deduction for payments made to an associate – whether Applicant entitled to deductions for personal superannuation contributions – entitlement to income tax deduction for travel expenses where reimbursement already made – whether Respondent out of time to amend assessments – limited amendment period – whether Applicant beneficiary under a trust – whether any person entered into or carried out a scheme for the sole or dominant purpose of the individual obtaining a scheme benefit – decision under review affirmed
Superannuation Guarantee (Administration) Act 1992 (Cth) – s 12(3)

Legislation

Commonwealth

ASIC Corporations (Amendment) Instrument 2019/902
05/09/2019 - This instrument amends the ASIC Corporations (Repeal and Transitional) Instrument 2016/396, ASIC Corporations (CSSF-Regulated Financial Services Providers) Instrument 2016/1109 and ASIC Corporations (Foreign Financial Services Providers--Limited Connection) Instrument 2017/182

Queensland

Subordinate legislation as made – 03 September 2019
No 183 Superannuation (Public Employees Portability) Notice 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.