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.