In the media
Super performance test needs trial run period
MEDIA - 27 May 2021 - the Government's proposed superannuation performance test needs a two-year trial run as there are potential failures and risks of unintended consequences in the outworking of the test, according to a super body ASFA. More...
Hayne failed and APRA failed on industry funds
MEDIA - 27 May 2021 - a Parliamentary Committee has found
that the Hayne Royal Commission failed to adequately scrutinise
industry superannuation fund structures and the Australian
Prudential Regulation Authority has also fallen short, according to
a Liberal member of that committee. More...
First Australians, like all Australians, should have
access to jobs with superannuation on every dollar
AIST - 26 May 2021 - for National Reconciliation Week,
AIST is calling for jobs through the Federal Government's
Community Development Program (CDP) to be replaced
with jobs that pay superannuation. We are concerned that the CDP
denies participants workplace rights, including superannuation. More...
Regulations fail to allay concerns that Your Future Your
Super legislation will harm members
AIST - 26 May 2021 - the release of draft regulations
relating to the Government's Your Future Your Super
legislation has done nothing to allay concerns that the legislation
will cause more consumer harm than good and not deliver on its
objectives. More...
Former Sydney financial adviser sentenced to six years
imprisonment
ASIC - 25 May 2021 - following an ASIC investigation, Mr
Hopkins, a former financial adviser, was convicted of 15 dishonesty
offences under the Corporations Act, committed when he was the sole
director of QWL Pty Ltd. Mr Hopkins was a financial adviser
entrusted by his clients to manage their self-managed
superannuation accounts. More...
Total superannuation assets hit a record high
TREASURY - 25 May 2021 - confirmation of total
superannuation assets reaching an all-time high means it is more
important than ever to pass the Your Future, Your Super legislation
currently before the House of Representatives. More...
ASIC issues civil penalty action against Equiti FS
MEDIA - 20 May 2021 - the corporate regulator has
commenced civil penalty proceedings against the company for
breaching the prohibition against conflicted remuneration and
failing to provide appropriate financial advice. More...
Call to use Single Disciplinary Body to reduce, not
increase costs
MEDIA - 20 May 2021 - the Government and Treasury should
seek to avoid repeating the FASEA mistakes by using the
establishment of a Single Disciplinary Body to reduce regulatory
costs. More...
More needs to be done to bridge COVID super gap and
improve retirement outcomes for women and low income earners
AIST - 18 May 2021 - the legacy of the COVID early release
super scheme on the retirement outcomes for millions of Australians
will last a lifetime without policy measures to help bridge the
savings gap, AIST CEO Eva Scheerlinck warned. More...
Professional registration should be at the heart of new
disciplinary model
FPA - 19 May 2021 - the FPA welcomes the Government's
proposal to establish a new disciplinary function for financial
planners but is calling for further refinement to improve the
model, including the creation of a true professional registration
for financial planners. More...
AFCA announces John Pollaers OAM as next Independent
Chair
AFCA - 17 May 2021 - the Australian Financial Complaints
Authority's (AFCA) Board of Directors
announced the appointment of Professor John Pollaers OAM as its
next Independent Chair. More...
In practice and courts
ATO Alerts
27 May 2021 Reminder: New accounting standard AASB 2020-2
applies from 1 July 2021
Reminder, the new accounting standard released by the Australian
Accounting Standards Board applies from 1 July 2021 and may change
how you prepare SMSF's financial statements.
Treasury Consultations - Reducing red tape for
superannuation funds - ECPI measures
The draft legislation provides choice for superannuation
fund trustees to use their preferred method of calculating ECPI
where the fund is fully in the retirement phase for part of the
income year but not for the entire income year.
The draft legislation will also remove a redundant requirement for
superannuation funds to obtain an actuarial certificate when
calculating ECPI. The exposure draft legislation and supporting
materials are available on the Treasury website. View the submission guidelines for further information.
Consultation will close on 18 June 2021.
Latest news on tax and superannuation law and policy:
Budget 2021-22
The Government handed down the 2021-22 Budget on 11 May
2021, with several changes to tax and superannuation laws (see budget.gov.au).
The measures are listed here with proposed commencement dates. More...
ASIC Updates
07/05/2021 ASIC Corporations (Amendment)
Instrument 2021/381
Amends the ASIC Corporations (Auditor Independence) Instrument 2021/75 and ASIC Corporations (Parent Entity
Financial Statements) Instrument 2021/195 to change the repeal dates from April
2026 to April 2024
06/05/2021 INFO 253 Claims
handling and settling: How to comply with your AFS licence
obligations (PDF 386 KB - reissued)
Updated to reflect the Financial Sector Reform (Hayne Royal Commission
Response) (Claimant Intermediaries) Regulations 2021 (made on
15 April 2021) which exclude certain people from being
'claimant intermediaries.
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.
ASIC Consultations: CP 340 Breach reporting and related
obligations
Comments close 3 June 2021.
This consultation paper sets out our proposals for providing
guidance to Australian financial services (AFS) licensees and
Australian credit licensees (credit licensees) on the breach
reporting obligation that applies from 1 October 2021. The
obligations require these licensees to notify, investigate and
remediate breaches of the law in certain circumstances. More...
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.
Consultation exposure draft regulations underpinning
Treasury Laws Amendment (Your Future, Your Super) Bill 2021
Under the Your Future, Your Super reforms, the Morrison
Government is taking the next step in modernising and improving the
superannuation system. The Your Future, Your Super package is
scheduled to commence on 1 July 2021. Consultation closed on 25 May
2021. Further information is available at the Treasury website. More...
APRA releases superannuation statistics for March
2021
The Australian Prudential Regulation Authority
(APRA) has released its Quarterly Superannuation
Performance publication and the Quarterly MySuper Statistics report
for the March 2021 quarter (25 May 2021). More...
APRA publishes additional FAQs and worked examples on
the Superannuation Data Transformation Phase 1 reporting
standards
To provide further guidance on meeting the Reporting
Standards for Phase 1 of the Superannuation Data
Transformation. One FAQ has been updated to
clarify reporting under Reporting Standard SRS 332.0 -
Expenses. The FAQs are available on the APRA
website at Frequently Asked Questions - Superannuation Data
Transformation (21 May 2021).
APRA consultation on guidance in support of prudential
standard on remuneration
The draft Prudential Practice Guide CPG 511 Remuneration
sets out principles and examples of better practice to assist
banks, insurers and superannuation licensees comply with prudential
standard CPS 511 Remuneration, which will be finalised
later this year. The closing date for submissions on the draft CPG
511 is 23 July 2021.
Copies of the draft CPG 511 and a consultation letter are available
on APRA's website at: Consultation on remuneration requirements for all
APRA-regulated entities.
APRA draft Prudential Practice Guide CPG 229 Climate
Change Financial Risks (CPG 229)
The guide is designed to assist APRA-regulated entities in
managing climate-related risks and opportunities as part of their
existing risk management and governance frameworks. APRA is seeking
stakeholder feedback on the draft CPG 229 by 31 July 2021. The
draft CPG 229 and supporting resource links are available on the
APRA website at: Consultation on draft Prudential Practice Guide on
Climate Change Financial Risks.
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).
AIST Submissions
25 May 2021 AIST Submission to Treasury: Your Future Your
Super Regulations and associated measures
AIST supports the objectives of the Your Future Your Super package
to hold super funds to account for their performance, address the
creation of unintended multiple accounts, empower members and
increase transparency and accountability. AIST does not believe the
legislation or regulations will deliver on these objectives.
Legislation
Commonwealth
Financial Regulator Assessment Authority
(Consequential Amendments and Transitional Provisions) Bill
2021
26/05/2021 - introduced with the Financial Regulator Assessment
Authority Bill 2021, the bill amends five Acts to make amendments
consequential on the establishment of the Financial Regulator
Assessment Authority.
Financial Regulator Assessment Authority
Bill 2021
26/05/2021 - introduced with the Financial Regulator Assessment
Authority (Consequential Amendments and Transitional Provisions)
Bill 2021, the bill: Establishes the Financial Regulatory
Assessment Authority to assess and report on the effectiveness and
capability of the Australian Prudential Regulation Authority and
the Australian Securities and Investments Commission; and prohibits
the unauthorised use or disclosure of protected information
provided to the Authority.
Treasury Laws Amendment (2021 Measures No.
4) Bill 2021
HR 26/05/2021 - amendments to product intervention regime - to
provide that ASIC is not prohibited from making a product
intervention order that has conditions relating to fees, charges or
other consideration paid or payable as remuneration by a retail
client or consumer to a person, including the provider (or their
associates) of a financial product or a credit product.
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.
