In the media
ASIC reaps 'largest ever' penalties amid
litigation blitz
ASIC – 16 April 2021 – ASIC has gained civil
penalties totalling $159.8 million in six months in a new record it
says will send "strong messages of deterrence". A total
of 27 individuals were charged in criminal proceedings, launched 14
civil penalty cases and banned 22 individuals from providing
financial services or credit.
More...
ASIC extends temporary financial advice relief measure
in COVID-19 instrument
ASIC – 15 April 2021 – ASIC has announced that
it will extend one of three temporary relief measures designed to
help the financial advice industry provide consumers with
affordable and timely advice during the COVID-19 pandemic.
More...
Super funds need real-time data
MEDIA – 13 April 2021 – Holistic and timely
data will allow superannuation funds to have individualised
engagement with members but, at the moment, more funds only have a
small number of data points for members, according to Rice Warner.
More...
REST joins anti-slavery coalition
NEWS – 13 April 2021 – The industry super
funds joins 32 other institutional investors and super funds in
signing up to the Investors Against Slavery and Trafficking APAC
coalition.
More...
APRA cracks down on super reinsurers
NEWS – 12 April 2021 –
The Australian Prudential Regulation Authority
(APRA) is calling for feedback on a package designed to address
concerns regarding the increased use of offshore reinsurers by life
insurers.
More...
Super performance test gives poor performing funds
'leg up'
MEDIA – 9 April 2021 – The government's
superannuation performance test proposed in its Your Future, Your
Super legislation does not include administration fees and other
non-investment charges which could lead to super funds charging up
to four times the median fees, according to Industry Super
Australia (ISA).
More...
Significant danger in lack of YFYS detail
MEDIA – 08 April 2021 – Key Parliamentary
Committee has been warned that there are significant dangers for
the superannuation industry in the lack of detail around the
Government's Your Future, Your Super legislation.
More...
Will Govt's YFYS legislation force a cull of
superannuation associations?
NEWS – 08 April 2021 – Superannuation industry
associations may be facing significant consolidation as the
Government's new legislation forces to superannuation funds to
justify spending member funds on membership.
More...
ASIC warns time is fast running out for insurance claims
handling AFS licence applications
ASIC called on insurance claims handling firms to lodge
licence applications (new and varied) as soon as possible, and by
no later than 7 May 2021 (08 April 2021).
More...
AFCA's inbuilt moral hazard for financial
advisers
Financial advisers are being exposed to moral hazard
because of the rules around consumer complaints lodged with the
Australian Financial Complaints Authority (AFCA),
according to the Financial Planning Association (07 April 2021).
More...
Trio penalised $9.4 million for tax exploitation
scheme
ATO – 08 April 2021 – The ATO is dedicated to
identifying and disrupting tax exploitation schemes. In March 2021,
a solicitor, financial planner and accountant were penalised more
than $9.4 million for promoting an illegal tax avoidance scheme,
following an investigation that spanned several years.
More...
Govt urged to press ahead with measure to make super
assets visible in family court proceedings
AIST – 07 April 2021 – The Australian
Institute of Superannuation Trustees has called on the Government
to prioritise their promised family law super scheme in the wake of
the welcome announcement that a second controversial measure - to
allow family violence victims to access their super - has been
abandoned.
More...
Govt lambasted over lack of detail on super performance
tests
MEDIA – 06 April 2021 – Major superannuation
funds are calling for an extensive consultation process before the
Australian Prudential Regulation Authority is handed the regulatory
power to conduct superannuation performance tests.
More...
Members call on QSuper and Sunsuper to exit coal
MEDIA – 06 April 2021 – Over 200 members from
the superannuation funds have urged the funds to reconcile their
stated commitments to invest responsibly with their investments in
high-emitting assets.
More...
In practice and courts
Opening statement for Senate Economics Legislation
Committee's Inquiry into the Treasury Laws Amendment (Your
Future, Your Super) Bill 2021
7 April 2021 – Helen Rowell, Deputy Chair - Senate
Economics Legislation Committee, Sydney.
More...
ASIC Regulatory Updates
16/04/2021
REP 688 ASIC enforcement update July to December 2020
Provides an update on ASIC's enforcement work undertaken
between 1 July and 31 December 2020, a period in which ASIC
continued to take action to support its enforcement priorities and
pursue a fair, strong and efficient financial system for all
Australians: See
21-074MR
14/04/2021 ASIC Corporations
(COVID-19–Advice-related Relief) Instrument 2021/268
Extends until 15 October 2021 the relief measure that allows
financial advisers to provide a record of advice rather than a
statement of advice to existing clients requiring financial advice
due to the impact of the COVID-19 pandemic: See
21-072MR and
FAQs
13/04/2021
RG 96 Debt collection guideline: For collectors and creditors
(reissued)
Legislation references specific to field agents in Queensland
updated.
08/04/2021
INFO 253 Claims handling and settling: How to comply with your
AFS licence obligations (new)
Assists firms who provide insurance claims handling and settling
services to prepare and submit their AFS licence applications as
soon as possible after 1 January 2021, and by no later than 7 May
2021: See
21-067MR
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.
AFSA: Introducing our new AFSAsandpit website
6 April 2021 – The new AFSAsandpit website has now
launched. The new site unveils a fresh, modern design and makes it
easier for the public, users of our services and other stakeholders
Launched in 2018 it has been extremely valuable in helping to
design services that best meet our users' needs – for
both PPSR and personal insolvency functions.
More...
APRA draft taxonomy artefacts to assist superannuation
entities prepare for APRA Connect
APRA has released the response paper and 10 final
reporting standards for the first phase of its multi-year
Superannuation Data Transformation. The Response Paper and
finalised reporting standards are available at:
Consultation on APRA's Superannuation Data
Transformation.
These new collections will be reported through APRA
Connect.
Final versions of these documents will be available before the
external test environment is released to entities in June 2021. The
draft artefacts include the data dictionary, validations, reporting
taxonomy and XSD (to validate files).
AFCA Current Matters
Business interruption insurance test cases (Updated March
2021)
Cases
Rushton v Commonwealth Superannuation Corporation (No
3) [2021] FCA 358
SUPERANNUATION – financial services –
superannuation complaints – Australian Financial Complaints
Authority (AFCA) given powers to determine superannuation
complaints under s 1055 Corporations Act 2001 (Cth) – where
AFCA required to decide whether superannuation trustee's
decision operated unreasonably or unfairly – where applicant
married to, but had separated from, member (now deceased) of the
Public Sector Superannuation Scheme – where applicant sought
to qualify for a reversionary pension under scheme rules –
where applicant and deceased had children – where applicant
lived in separate premises from, but provided daily care to,
deceased and children during final stages of her illness –
whether applicant and deceased were living together as husband and
wife – where applicant granted carer's pension to enable
him to care for deceased – whether applicant wholly or partly
dependent on deceased at the time of her death – where
trustee determined applicant did not qualify for reversionary
pension – where AFCA affirmed the decision of trustee –
whether AFCA made jurisdictional or other error in affirming
decision of trustee – held: AFCA did not make any error in
determining complaint.
Cradock v United Super Pty Ltd as Trustee of the
Construction and Building Unions Superannuation Fund
[2021] FCA 305
PRACTICE AND PROCEDURE – application for an
extension of time to commence an appeal from a decision of the
Australian Financial Complaints Authority (AFCA) – AFCA
affirming a decision of a superannuation trustee in relation to the
distribution of death benefits – s 1055B and s 1057A of the
Corporations Act 2001 (Cth) providing that AFCA's decision
comes into immediate effect unless AFCA provides otherwise or
unless the Federal Court of Australia stays the decision appealed
from – no application for a stay of AFCA's decision
– decision appealed from implemented by trustee before the
time to commence an appeal expired – recipient of benefit of
the trustee's decision receiving payment and expending funds
– recipient asserting prejudice in the nature of a risk that
the law might operate to require that she disgorge the payment
– unsatisfactory explanation for delay in commencing appeal
– public interest in proper construction of the provisions of
the Corporations Act 2001 (Cth) conferring powers of remittal
– consideration of whether there could or should be remittal
for reconsideration of a decision that has been implemented –
extension of time granted on limited grounds.
Legislation
Commonwealth
Regulations
ASIC
Corporations (COVID-19 - Advice-related Relief) Instrument
2021/268
14/04/2021 - This instrument facilitates the provision of
affordable and timely financial product advice to clients and
reduces the regulatory disclosure burden on providing entities due
to the COVID-19 pandemic by continuing the temporary relief in ASIC
Corporations (COVID-19—Advice-related Relief) Instrument
2020/355 that allows a record of advice to be provided to existing
clients in relation to COVID-19 advice in certain
circumstances.
Superannuation
Amendment (PSS Trust Deed) Instrument
2021
06/04/2021 - This instrument amends the Public Sector
Superannuation Scheme Trust Deed as a consequence of the Family Law
Amendment (Western Australia De Facto Superannuation Splitting and
Bankruptcy) Act 2020, and addresses matters relating to delegation
by the Finance Minister.
Auditing
Standard ASQM 2 Engagement Quality
Reviews
06/04/2021 - This instrument deals with the appointment
and eligibility of the engagement quality reviewer and the
engagement quality reviewer's responsibilities relating to the
performance and documentation of an engagement quality review.
Auditing
Standard ASQM 1 Quality Management for Firms that Perform Audits or
Reviews of Financial Reports and Other Financial Information, or
Other Assurance or Related Services
Engagements
06/04/2021 - This instrument deals with a firm's
responsibilities to design, implement and operate a system of
quality management for audits or reviews of financial reports and
other financial information, or other assurance or related services
engagements.
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.