In the media
APRA concedes to IOOF judgement
APRA has chosen not to appeal the Federal Court decision
to dismiss its court action against IOOF, which alleged the wealth
giant had failed to act in the best interests of its superannuation
members, but is considering reshaping its super supervision (17
October 2019).
More...
ASIC annual report for 2018-19
ASIC's Annual Report for the 2018-19 financial year
has been tabled today in the Australian Parliament. Matters
highlighted or referred to by the Royal Commission have been
prioritised, and work continues on implementing ASIC's new
obligations and responsibilities included in its recommendations
(17 October 2019).
More...
FSC responds to ASIC TPD report
In response to ASIC's report 'Holes in the safety
net: A review of TPD insurance claims', based on claims data
and files dating back from 2016/17, the Financial Services Council
(FSC) offered more recent analysis, using 2018
data on total and permanent disability (TPD)
claims in life insurance (17 October 2019).
More...
Australians urged to check their super ahead of latest
changes
Australians with multiple super accounts should consider
consolidating their accounts or risk losing potential earnings,
ahead of new superannuation changes coming into effect at the end
of October (16 October 2019).
More...
Taking action on the Banking, Superannuation and
Financial Services Royal Commission - Recommendation 2.4:
Grandfathered commissions
Consumers will benefit from lower fees following the
removal of conflicted remuneration for financial advice after the
Coalition Government passed new laws through the Parliament
yesterday, ending the payment of grandfathered conflicted
remuneration (15 October 2019).
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ASIC's SMSF calculations distorted
Running a SMSF is $8,900 cheaper than what ASIC believes,
according to the SMSF Association (15 October 2019).
More...
FSC welcomes end to grandfathered conflicted
remuneration
The FSC has welcomed the passage of legislation ending
grandfathered conflicted remuneration payments to financial
advisers. From 1 January 2021, as part of these reforms, where a
conflicted remuneration is payable in contracts, the benefit must
be passed through to the client (15 October 2019).
More...
No one reads the PDS: ASIC
ASIC is calling time on the financial services
industry's reliance on disclosure as the default consumer
protection, saying it enables poor conduct and poor consumer
outcomes. ASIC teamed up with the Dutch Authority for Financial
Markets (AFM) to produce REP 632
'Disclosure: Why it shouldn't be the default'.
More...
'Sludge in the system': ASIC takes aim at fine
print used in financial products
ASIC finds that over the past decade the reliance on
mandated disclosure and warnings has proven to be ineffective (15
October 2019).
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ASIC to provide relief from financial adviser compliance
scheme obligations
ASIC has announced that it will make a legislative
instrument to provide relief to Australian financial services
(AFS) licensees from financial adviser compliance
scheme obligations, following a Government announcement a new
disciplinary body will displace the role of compliance schemes in
monitoring and enforcing the Financial
Planners and Advisers Code of Ethics 2019 (the code) (15
October 2019).
More...
ASIC 'calls time' on disclosure reliance
In a joint report published, ASIC and the Dutch Authority
for the Financial Markets (AFM) looked at the
effectiveness of disclosure for looked at the effectiveness of
disclosure for financial products on consumer outcomes (14 October
2019).
More...
New report highlights accountancy profession as key
driver of progress in adoption of international standards
In celebration of World Standards Day, IFAC released a new
report detailing how and where international accountancy standards
which focus on audit and assurance, ethics, education, and private
and public sector accounting—are being adopted and
implemented globally (14 October 2019).
More...
Associations respond to Government's decision on
code monitoring
The heads of Australia's six leading professional
associations for financial advisers have expressed disappointment
in the timing of the Government's decision to not proceed with
code monitoring, just a month before all financial advisers are due
to have registered (14 October 2019).
More...
Taking action on the Banking, Superannuation &
Financial Services Industry Royal Commission – Recommendation
2.10: New financial adviser disciplinary system
The Morrison Government is accelerating the establishment
of a new disciplinary system and single disciplinary body for
financial advisers in early 2021, subject to the passage of
legislation which will be introduced into the Parliament next year
(11 October 2019).
More...
APRA extends annual data collection reporting periods
for registered financial corporations
The APRA has granted an extension to the annual reporting
periods for the Economic and Financial Statistics
(EFS) data collection reporting forms completed by
registered financial corporations (RFCs), will now
be able to submit their report by the RFC's respective
financial year end (11 October 2019).
More...
Self-managed super funds face a wealth wipe-out due to
inexperience and a toxic economic mix: ASIC
The low-interest-rate/low-inflation environment that's
making life tough for professional investors could be toxic for
inexperienced self-managed funds, according to ASIC (11 October
2019).
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SMSFs not suitable for everyone
The Australian Securities and Investments Commission has
identified eight red flags which would make it 'extremely
unlikely' for an investor to gain any advantage from using
self-managed super funds (SMSFs)(11 October 2019).
More...
Govt aborts code-monitoring body move
The Federal Government has aborted plans to establish
Financial Adviser Standards and Ethics Authority
(FASEA) code-monitoring bodies, opting instead to
move towards a single disciplinary body covering advisers (11
October 2019).
More...
Super funds need to increase data management
protection
Australia's retirement savings pool is at risk of
cybercrime and fraud attacks as the sector continues to grow,
according to a whitepaper authored by payment technology company
InPayTech (10 October 2019).
More...
Future Fund unsuitable to be national pension
scheme
Using the Future Fund as a national retirement scheme
would not be sensible as it has not performed any better than
leading superannuation funds and liquidity could be an issue,
according to Rice Warner (8 October 2019).
More...
ASIC warns AFS licensees to meet financial reporting
obligations on time
ASIC is reminding all Australian Financial Services
(AFS) licensees to lodge their annual financial
statements and auditor reports by the due as required under the
Corporations Act 2001 (04 October 2019).
More...
In practice and courts
AASB: Simplified disclosure standard -
Key facts
AASB staff have prepared a
summary of key facts about the proposed simplified disclosure
standard (ED 295). This explains the background
for the proposals, which disclosures have been removed from the RDR
disclosures, and which disclosures would be added if the proposals
are approved (10 October 2019).
AASB: Amendments to AASB 1059 Service Concession
Arrangements: Grantors
The AASB issued
AASB 2019-2 Amendments to Australian Accounting Standards –
Implementation of AASB 1059 to amend the modified retrospective
method set out in paragraph C4 of AASB 1059, and to provide a
practical expedient to grantors of service concession to not apply
AASB 16 Leases to assets that would be recognised as service
concession assets under AASB 1059 (11 October 2019).
IFRS: Interest-rate benchmarks amendments
Amendments issued today 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.
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...
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
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...
Corporations Amendment (Design and Distribution
Obligations) Regulations 2019
Consultation date: 11 October 2019 - The Government has
released for public consultation exposure draft regulations to
support the Treasury
Laws Amendment (Design and Distribution Obligations and Product
Intervention Powers) Act 2019 and an explanatory
statement here.
ISA Submissions
Submission on draft Prudential Practice Guide SPG 516 –
Business Performance Review 10 Oct 2019
Corporations Amendment (Design and Distribution Obligations)
Regulations Oct 2019
Treasury Laws Amendment (Recovering Unpaid Superannuation) Bill
2019 10 Oct 2019
Remission of additional superannuation guarantee charge 08 Oct
2019
AIST Policy
AIST: Policy news - 17 October 2019
17 October 2019 - Disclosure value questioned - APRA on trustee "discomfort''- SMSF warnings - MySuper fees. More...
AIST: Policy news - 10 October 2019
10 October 2019 - Parliament to scrutinise super| Latest
Insurance developments & more
Read
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 click
here.
Cases
Robinson-Page Management Pty Ltd Aft The Beggs-Page
Superannuation Fund -v- Trackem Holdings Pty Ltd
[2019] WASC 194
Practice and procedure - Inadequate indorsement of claim
on writ - Setting aside a writ pursuant to O 6 r 1 Rules of the
Supreme Court 1971 (WA)
Redenbach and Commonwealth Superannuation
Corporation [2019] AATA
4147
The decision under review is affirmed.
DEFENCE – Defence force retirement and death benefits –
classification in respect of incapacity – percentage of
incapacity – where Applicant classified as Class C –
assessment as to the degree of physical or mental impairment
causing invalidity in diminishing the capacity of the Applicant to
undertake kinds of civil employment – whether Applicant
should have been assessed as having a higher percentage of
incapacity – assessment of degree of impairment and
percentage of incapacity at time of discharge – decision
under review affirmed
Defence Force Retirement and Death Benefits Act 1973
(Cth)
Wigmans v AMP Ltd [2019] NSWCA
243
1. Grant leave to appeal in respect of ground 1 of the
draft notice of appeal.
CIVIL PROCEDURE – representative proceedings –
multiplicity of proceedings – competing proceedings brought
in single forum by various plaintiffs against the same defendant
– where the plaintiffs sought permanent stays of one
another's proceedings – where stay granted against all
but the last-commenced proceeding – whether bringing
subsequent proceedings constitutes an abuse of process
Following testimony given by executives of AMP Ltd
(AMP) in the Royal Commission into Misconduct in
the Banking, Superannuation and Financial Services Industry, five
class actions were commenced within a short time of each other on
behalf of shareholders in AMP
LM Investment Management Pty Ltd (in liq) v EY (also known
as Ernst & Young) & Ors [2019] QSC
246
The order of the court is that: The application for leave
to proceed is dismissed.
CORPORATIONS – WINDING UP – LIQUIDATORS –
ACCOUNTS AND AUDITS – Where the defendants were the firm of
auditors appointed to audit the financial statements and compliance
plan of the FMIF – Where the defendants breached their
obligations as auditors – Where the defendants issued a third
party notice purporting to join LMIM as first, second and third
third party in three different capacities – Whether the claim
made by the defendants against LMIM in the third party notice
should be allowed to proceed – Whether the defendants have
established that their claim raises a serious question to be
tried.
Abbott v Commissioner of Police [2017] 1 Qd R 592,
cited
Australian Securities and Investments Commission v
Helou [2019] FCA
1634
CORPORATIONS – multiple regulatory enforcement
proceedings – breaches of duties of directors and officers
– ASIC proceedings against chief executive officer and chief
financial officer for disqualification orders – earlier ASIC
proceedings against corporate entity – separate ACCC
proceedings against corporate entity and officers for
disqualification orders – application for permanent stay of
proceedings – overlap of proceedings – vexatious and
oppressive proceedings – administration of justice –
abuse of process – applications dismissed
Legislation
Commonwealth
Treasury Laws Amendment (2019 Measures No. 2) Bill
2019
Finally passed both Houses 17 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
Military
Superannuation and Benefits (Eligible Members) Declaration
2019
18/10/2019 – This instrument repeals the Military
Superannuation and Benefits (Eligible Members) Declaration 2018 and
declares the eligible members for the purpose of the Act who were
provided under the repealed Declaration. It also includes three new
specified categories and closes five specified categories and
amends a commencement date for one specified category. It also
declares an additional 18 individual members as eligible
members.
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.