In the media
Government needs to re-think flawed Your Future Your
Super legislation
AIST – 18 March 2021 – The Government's
Your Future Your Super legislation – currently before
Parliament – will not achieve its stated intent and should
not proceed, the Australian Institute of Superannuation Trustees
said.
More...
There is $13.8 billion in lost and unclaimed super.
Could any of it be yours?
TREASURY – 18 March 2021 – Around $13.8
billion in Australians' hard earned wages is waiting to be
claimed, in the form of lost and unclaimed superannuation.
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Home buyer inequity to grow if super used for
deposit
MEDIA – 16 March 2021 – Allowing first home
buyers to access their superannuation for a home deposit would
increase inequity between higher income home purchases and lower
income purchasers, according to a report by the Association of
Superannuation Funds of Australia.
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SFA calls for independent review into housing
affordability, warns using super for housing deposits would make a
bad situation catastrophic
ASFA – 12 March 2021 – Analysis released by
the ASFA shows using super for housing would put significant upward
pressure on house prices and exacerbate housing affordability
concerns for low-income earners. ASFA CEO said using superannuation
for housing deposits is fundamentally inconsistent with the
objective of superannuation to provide an adequate retirement
income.
More...
ASIC imposes licence conditions on derivatives
issuer
MEDIA – 12 March 2021 – In a statement, ASIC
said the new conditions had been placed on AxiCorp Financial
Services' licence "to ensure that AxiCorp has adequate
compliance arrangements in place for its over the counter
derivatives business".
More...
APRA closes investigation into Westpac anti-money
laundering breaches
APRA – 12 March 2021 – The APRA has closed its
investigation into possible breaches of the Banking Act 1959
Banking Act or the BEAR. APRA remains determined to ensure Westpac
rectifies its risk governance weaknesses effectively and
sustainably.
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The super rate increase will power economic growth, job
creation and wage rises
MEDIA – 12 Mar 2021 – Increasing the super
guarantee to 12 per cent will lead to a bigger economy, more jobs,
higher real wages, and higher real incomes, new independent
research has found. It finds the billions available in extra
capital will expand the economy, leading to a demand for more
labour – which in turn fuels wage growth.
More...
ACIL Allen report: Economic impact of increasing the
super guarantee rate
INDUSTRY SUPER – 12 March 2021 – This report
examines the impact on the Australian economy of the legislated
increase in the Super Guarantee Rate from 9.5 per cent to 12 per
cent. Increasing the SG rate will lead to a bigger economy ($12
billion bigger in 2040) than will occur without the increase in the
SG rate. It is the first study that comprehensively measures all
the economic factors involved in the relationship between super and
wages.
More...
A year on: 11,000 COVID-19 complaints, scams on the
rise
AFCA – 10 March 2021 – The Australian
Financial Complaints Authority (AFCA) is seeing a
sharp rise in consumer complaints about scams, after receiving more
than 11,000 complaints related to COVID-19 in the year leading up
to the anniversary of the pandemic's declaration.
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Insurance in super issues need addressing: APRA
MEDIA – 09 March 2021 – The APRA has again
outlined its concerns regarding the sustainability of insurance in
superannuation to life insurers and registrable super entity
licensees given the significant recent deterioration in group life
insurance claims experience.
More...
Two-stage process needed for super performance
test
MEDIA – 9 March 2021 – ASIC has formally
canvassed a 'regulatory sandbox' approach allowing fintech
companies to test products without an AFSL. The superannuation
performance test should be conducted in a two-stage approach and
assessed by a panel of experienced industry professionals who are
impartial, according to the chairs of major super funds.
More...
APRA urges life insurers and superannuation funds to
address sustainability of insurance in superannuation
APRA – 9 March 2021 – The Australian
Prudential Regulation Authority has written to life insurers and
registrable superannuation entity licensees, urging them to address
concerning trends and practices in the provision of insurance to
superannuation members. The letter to life insurers and
superannuation funds is available on the APRA website at: Sustainability of Life
Insurance in Superannuation.
More...
In practice and courts
ASIC Corporations, Superannuation and Credit (Amendment)
Instrument 2020/99
Amends the ASIC Corporations and Credit (Internal Dispute
Resolution – Transitional) Instrument 2019/965
to preserve ASIC's existing internal dispute resolution policy
in relation to complaints received by financial firms before 5
October 2021.
AUSTRAC: Proposed amendments to Chapters 3, 6, 7 and 10
of the AML/CTF Rules
AUSTRAC has released proposed amendments to the following
chapters of the Anti-Money Laundering and Counter-Terrorism
Financing Rules for public consultation: Chapter 3 –
Correspondent banking; Chapter 6 – Customer identification
and verification; Chapter 7 – Reliance on customer
identification carried out by another reporting entity and Chapter
10 – Gambling services.
The proposed changes are to support reforms to the AML/CTF Act made
by the Anti-Money
Laundering and Counter-Terrorism Financing and Other Legislation
Amendment Act 2020 (Phase 1.5 reforms).
The consultation period for these amendments is 27 January 2021
until 11 March 2021.
More...
Review of the Australian Financial Complaints
Authority
The Morrison Government has released a terms of reference
for the review of the Australian Financial Complaints Authority
(AFCA), and is seeking stakeholder feedback on its functions and
performance. All interested parties are invited to lodge
submissions through the Treasury website before consultation closes
on 26 March 2021.Further information is available on the
Treasury website.
APRA reminder: Superannuation licensees on upcoming
legislative obligations
Registrable superannuation entity (RSE) licensees are
reminded of two key regulatory requirements - to undertake a
Business Performance Review by 31 December 2020, and an outcomes
assessment by 28 February 2021. View the letter here Letter to registrable
superannuation entity licensees: Looking ahead - Focus on strategic
planning and member outcomes.
ASIC Corporations, Superannuation and Credit (Amendment)
Instrument 2020/99
Amends the ASIC Corporations and Credit (Internal Dispute
Resolution – Transitional) Instrument 2019/965
to preserve ASIC's existing internal dispute resolution policy
in relation to complaints received by financial firms before 5
October 2021.
AIST submission: Consultation on APRA Prudential
Standard SPS 250 Insurance in Superannuation
09 March 2021 – AIST acknowledges the further
clarity and guidance APRA has provided in this iteration but calls
on APRA to seek mandatory SuperStream insurance data fields to
better promote member insurance interests. AIST also calls for
further guidance on independent certification arrangements, timing,
and process; and to clarify expectations for members leaving
employer supported insurance arrangements.
More...
Cases
Australian Securities and Investments Commission v TAL Life
Limited (No 2) [2021] FCA
193
CORPORATIONS – misleading or deceptive conduct
–financial products – insurance – allegation that
insurer had misled insured by making representations about
insurer's right to delay the processing of the insured's
claim and to withhold benefits under the policy until the insured
provided an executed authority enabling the insurer to obtain and
access the insured's medical records and Medicare and
Pharmaceutical Benefits Scheme claims information – whether
representation was made – whether representation was false or
misleading – whether representation contravened s 1041H(1) of
the Corporations Act 2001 (Cth) – whether representation
contravened ss 12DA(1) and 12BD(1) of the Australian Securities and
Investments Commission Act 2001 (Cth) – whether conduct was
in connection with the supply of financial services – whether
conduct was in relation to financial services – meaning of
"financial services" – whether representation was
made in connection with the issue of the policy – whether the
process of claims handling is a service otherwise supplied in
relation to the policy
INSURANCE – whether insurer breached the duty of utmost good
faith under s 13 of the Insurance Contracts Act 1984 (Cth) –
where insured made an innocent non-disclosure and insurer avoided
the policy – where insurer did not give the insured any
notice of the investigation into the validity of her policy and did
not give her an opportunity to address the insurer's concerns
– where insurer alleged in policy avoidance letter that
insured had breached her duty of good faith – where insurer
threatened in policy avoidance letter to seek recovery of amounts
paid under the policy
HIGH COURT AND FEDERAL COURT – jurisdiction of the Federal
Court – power to award declaratory relief – whether
Australian Securities and Investments Commission lacks standing to
seek declaratory relief for breach of s 13(2) of the Insurance
Contracts Act 1984 (Cth)
CONSTITUTIONAL LAW – judicial power of the Commonwealth
– requirement for a "matter" – whether there
is a "matter" before the Court – where parties to
insurance contract agreed in settlement deed that contract was
avoided ab initio – whether ASIC lacks standing to seek
declaratory relief for breach of s 13(2) of the Insurance.
Australian Securities and Investments Commission v Dover
Financial Advisers Pty Ltd (No 3) [2021] FCA
170
CONSUMER LAW – pecuniary penalty for infringement of
s 12DB(1)(i) of the Australian Securities and Investments
Commission Act 2001 (Cth) – appropriate approach to
assessment of civil penalty – whether a single penalty is
required to be imposed for each contravening act – the
circumstances in which an aggregate penalty may be ordered for
multiple contraventions – relevance of contrition to
deterrence – relevance of damage to health and
reputation.
Legislation
Commonwealth
Treasury Laws Amendment (Reuniting More Superannuation)
Bill 2020
Finally passed both Houses 16 March 2021
Amends the: Retirement Savings Accounts Act 1997, Superannuation
Industry (Supervision) Act 1993 and Superannuation (Unclaimed Money
and Lost Members) Act 1999 to: Facilitate the closure of eligible
rollover funds by 30 June 2021; and enable the Commissioner of
Taxation to reunite amounts he or she receives from eligible
rollover funds with a member's active account; and Income Tax
Assessment Act 1997 and Taxation Administration Act 1953 to make
consequential amendments.
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.
