In the media
Beenleigh financial adviser banned for five years
ASIC's review of Mr Muscat's advice found that he
failed to take into account his clients' individual
circumstances because he used a templated approach for all clients
(27 June 2019).
More...
ASIC cancels the AFS licence of Guarded Pty Ltd
The cancellation was effective from 27 May 2019. Guarded
failed to maintain competence to provide the financial services
authorised by its licence after its responsible manager, who had
been appointed as a key person, resigned. It also failed to notify
ASIC or put forward a suitable replacement (26 June 2019).
More...
Melbourne adviser permanently banned by ASIC
ASIC has permanently banned Subeer Luthra from providing
financial services and engaging in credit activities because of his
dishonest conduct. An ASIC review of Mr Luthra's advice found
that he dishonestly recast his clients' priorities to suit his
own interests (26 June 2019).
More...
Firms reminded on exit fees ahead of PYSP
The ASIC is reminding product issuers that as part of
their implementation of Protecting Your Super Package, they need to
take care that, from 1 July 2019, Product Disclosure Statements do
not suggest exit fees will be charged on superannuation products
(25 June 2019).
More...
APRA preparing for super stakeholder regulation
APRA is gearing up for its new gatekeeping powers for
approving changes to controlling stakes of superannuation
licensees, having released a draft form and guide for applications
for consultation. The process will bring the body's ownership
powers in the super sector in line with that of banking and
insurance (25 June 2019).
More...
Last chance to continue Insurance in Super
This is the last week for many superannuation fund members
with inactive accounts to tell those funds if they want to continue
their life insurance cover. Most people who have superannuation
also have some life and disability insurance cover as part of their
super fund.
More...
ASIC's MoneySmart website also contains information about the
new laws (24 June 2019)
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ASIC falls in line with incoming super laws
The corporate regulator has made changes to its fees and
cost disclosure requirements to keep it consistent with the
government's Protecting Your Super Package laws that come into
place from 1 July (24 June 2019).
More...
Retail funds are "on the operating
table"
Speaking at the Bloomberg BuySide Forum in Sydney today, a
panel of industry experts painted a bleak picture of the state of
change retail superannuation funds are facing, as they undergo
scrutiny following the Banking Royal Commission and ever-growing
numbers of both members and default mandates go to industry funds
(20 June 2019).
More...
Industry funds urge AFCA to identify culprit firms
The Superannuation Complaints Tribunal received 1,739
complaints of which 91 per cent were resolved, according to its
annual report. Industry funds representative body the AIST has
urged the Australian Financial Complaints Authority to identify the
firms about which it makes determinations while supressing the
names of those making the complaints (20 June 2019).
More...
A decade of post-crisis G20 financial sector
reforms
The global financial crisis resulted in significant
disruption to markets, financial systems and economies. It also led
to comprehensive reform of the financial sector by the G20 group of
countries (20 June 2019).
More...
AAT upholds ASIC ban of client adviser for trading in
'MINI' warrants
ASIC banned a client adviser for a period of four years,
expiring on 28 January 2022. In its decision the AAT determined
that the ban be varied to expire on 31 December 2020. The AAT found
that Mr Menzies had contravened s.1041A of the Corporations Act
2001 and noted that 'for the holder of an Australian
Financial Services licence to be involved in a breach of s.1041A of
the Act (19 June 2019).
More...
ASIC foreshadows 'novel' instances from legacy
complaints
As financial planning firms brace for the possibility of
having to deal with client complaints dating back to 2008, the
Australian Securities and Investments Commission has acknowledged
the likelihood of "novel" issues arising which may
require further regulatory tweaks (19 June 2019).
More...
AFCA welcomes ASIC approval for legacy complaints
The Australian Financial Complaints Authority
(AFCA) has welcomed the Australian Securities and
Investments Commission's announcement that it has approved a
change to AFCA's Rules to allow it to investigate certain
complaints dating back to 1 January 2008 (18 June 2019).
More...
ASIC commences civil penalty proceeding against Westpac
for poor financial advice
In Court documents filed yesterday, ASIC alleges that, in
four sample client files selected by ASIC, Mr Sinha breached the
'best interests' duty under the Corporations Act
('the Act'), provided inappropriate financial advice, and
failed to prioritise the interests of his clients (15 June 2019).
More...
In practice and courts
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 (24 June 2019).
More...
Explainer: Here's how super is changing on July
1
Big changes to superannuation regulations were passed
through parliament earlier this year and have now come into effect
next week. (26 June 2019).
More...
ASIC amends fees and cost disclosure to align with
Protecting Your Super Package laws
CO 14/1252 modifies the Corporations Act
2001 and Corporations Regulations 2001 to set out
requirements for the disclosure of fees and costs in Product
Disclosure Statements for superannuation and managed investment
products.
Note: the Treasury Laws Amendment (Protecting
Your Super Package) Act 2019 is technical only and applies to
disclosure concerning superannuation products, and reflects the
PYSP ban on exit fees for these products by eliminating the line
allowing for disclosure of exit fees. The amendment does not
otherwise make any change to the requirements set out in CO 14/1252
(21 June 2019). More...
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. ASIC is
consulting for six weeks on the proposals in the paper and we
invite responses by 28 June 2018. We intend to release a regulatory
guide setting out our final policy by the end of September 2018.
More...
Financial Adviser Standards and Ethics Authority
(FASEA): draft guidance on education pathways for existing
financial advisers
Under the professional standards reforms, existing
financial advisers have until 1 January 2024 to meet the
degree-equivalent requirements set by the Standards Authority. The
draft guidance is available on the Standards Authority's
website.
More...
Current AFCA Matters – June 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 Submissions
27 June 2019 - Submission on AFCA Rules Change
Consultation
27 June 2019 - Submission on proposed amendments to MySuper
form and Instruction Guide
Gazette - Superannuation Industry (Supervision) Act 1993
28/06/2019
Notice of Disqualification - Peter Townsend; Josephine
Townsend; Haydene Dunsford; Carolyne Dunsford; Victoria Dunsford;
Stuart Dunsford
25/06/2019
Notice of Disqualification - Rachel Campbell; - John
Campbell
20/06/2019
Notice of Disqualification - Adam Pearse
Cases
Scone Race Club Limited v Commissioner of
Taxation [2019] FCA
976
SUPERANNUATION – Liability for superannuation
guarantee charge – whether jockeys are to be taken to be
employed by the applicant – Superannuation Guarantee
(Administration) Act 1992 (Cth) s 12(8) – whether
applicant is liable to make the payment of riding fees to jockeys -
where centralised payment system was established by the applicant
to control race-related payments – where racing industry is
heavily regulated by statute and national and local rules –
where jockeys and trainers are required to be licenced by the
applicant – where local rule of racing, Rule 72 provided that
the race club such as the applicant was liable to pay riding fees
to jockeys – whether applicant subject to any obligation in
equity to make payment for riding fees to jockeys – where
Local Rule 72 did not constitute a representation by the applicant
– where riding fees paid by industry regulator directly to
jockeys under its centralised payment system – where general
industry practice was that jockeys were engaged by trainers on
behalf of owners and that race clubs paid riding fees on behalf of
owners. HELD – No obligation in equity for applicant to make
payment – applicant not deemed to be an employer by s
12(8)(b) Superannuation Guarantee (Administration) Act
1992 (Cth).
Legislation
Commonwealth
Regulation
Superannuation
Supervisory Levy Imposition Determination 2019
28/06/2019 - This determination repeals and replaces
the Superannuation Supervisory Levy Imposition Determination 2018
and gives effect to the allocation of levies for the 2019-20
financial year.
ASIC
Corporations (Amendment) Instrument 2019/599
21/06/2019 - This instrument amends ASIC Class Order
[CO 14/1252] to ensure that the amendments made by the Treasury
Laws Amendment (Protecting Your Superannuation Package) Regulations
2019 (the PYSP Regulations) are given effect and to ensure that
modifications to Schedule 10 and Schedule 10D of the Corporations
Regulations 2001 made by the class order are not inconsistent with
the PYSP Regulations and continue to operate as intended.
Australian
Prudential Regulation Authority instrument fixing charges No. 4 of
2019
21/06/2019 - This instrument provides for the
provision of statistical information about financial sector
entities to the Reserve Bank of Australia and the Australian Bureau
of Statistics during the 2018-19 financial year.
Gazetted
Annual
Federal Courts and Tribunals Fee Increases from 1 July 2019
04/06/2019 - Pursuant to section 16 of the High Court
of Australia (Fees) Regulations 2012, from 1 July 2019 the fee
prescribed for each item of Schedule 1 to those Regulations will be
the amount listed here.
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.