In the media
Better Advice Bill introduced into Parliament
TREASURY - 24 June 2021 - the Morrison Government is
introducing further reforms to strengthen the financial advice
sector and implement recommendation 2.10 of the Royal Commission
into Misconduct in the Banking, Superannuation and Financial
Services Industry - the proposed the establishment of a single
disciplinary body for financial advisers. More...
Majority want inflation-protected income
MEDIA - 24 June 2021 Some 87 per cent of retirees want
regular inflation-protection income, according to a survey from
Mercer, and the Age Pension system isn't currently built to
support underwhelming retirement income plans. More...
Super rise to super-size Australia's retirement
savings
ASFA - 23 June 2021 - the Association of Superannuation
Funds of Australia has released new analysis of the impact on
retirement balances of the July 1 increase in the Superannuation
Guarantee to 10 per cent. More...
Second performance review needed: ASFA
MEDIA - 22 June - 2021 - a second stage as part of the
super test benchmark is needed to avoid relying on automation which
could create issues similar to that of the Robodebt saga, according
to the Association of Superannuation Funds of Australia
(ASFA). More...
Clarity needed on civil penalty exemptions for breach
reporting
MEDIA - 21 June 2021 - the corporate watchdog needs to
clarify which civil penalty provisions will be exempt from the new
breach reporting requirements, according to the Association of
Financial Advisers. More...
Maximum SMSF members moves up to 6
MEDIA - 18 June 2021 - self-managed superannuation funds
will be allowed to have up to six members and the SMSF Association
has welcomed this change as it will provide additional flexibility
and choice in the super system. More...
Mixed industry reactions to YFYS bill passage
MEDIA - 18 June 2021 - while the Financial Services
Council has welcomed the Senate passage of the Your Future, Your
Super bill, Industry Super Australia and the Australian Institute
of Superannuation Trustees believes the bill has stopped short.
More...
Superannuation reforms pass parliament - making your
super work harder for you
TREASURY - 17 June 2021 - the Morrison Government has
passed through the parliament landmark reforms to Australia's
superannuation system. These reforms will help ensure
superannuation works in the best financial interests of all
Australians by removing unnecessary waste, increasingly
accountability and transparency, and providing more flexibility for
families and individuals. More...
Passage of Your Future Your Super legislation will
create more harm than good
AIST - 17 June 2021 - the passage through Parliament of
the Government's Your Future Your Super legislation will cause
more consumer harm than good and not deliver on its objectives, the
Australian Institute of Superannuation Trustees
(AIST) warned. More...
AAT dismisses application for review of ASIC banning
order
ASIC - 16 June 2021 - the Administrative Appeals Tribunal
(AAT) has dismissed an application for review of
ASIC's decision to permanently ban former financial advisor, Mr
Robert Hutchison, from providing financial services. More...
Crackdown on financial services marketing: Kalkine
companies pay $350,000 penalty
ACMA - 16 June 2021 - financial services research
companies Kalkine and Kalkine Media have paid infringement notices
of $251,400 and $100,800 respectively for breaches of
Australia's telemarketing and spam laws. This is the first
significant enforcement action the ACMA has announced under its
crackdown on unlawful marketing practices in the financial services
sector. More...
FPA to manage and deliver Government's $1.5 million
Women in Finance and Economics Scholarship Program
FPA - 15 June 2021 - following an open and competitive
grant round, the FPA has been selected to manage and deliver a $1.5
million scholarship program for women in finance and economics, as
part of the Women's Leadership and Development Program.
More...
ASIC releases guidance on ongoing fee arrangements
ASIC - 15 June 2021 - ASIC has released an information
sheet (INFO 256) on ongoing fee arrangements to provide greater
clarity to financial advisers and advice licensees on their
obligations when providing personal advice to retail clients.
More...
Relief for financial advisers to meet their ongoing fee
disclosure obligations
As industry may have difficulties generating an accurate
fee disclosure statement during the transition period of 1 July
2021 to 30 June 2022, new regulation will allow financial advisers
to report an estimate of fees for the 60 days prior to the
statement being issued (11 June 2021). More...
Disclosure changes open door for 'reckless
behaviour'
MEDIA - 10 June 2021 - changes to disclosure measures
under the Treasury Laws Amendment (2021 Measures No.1) Bill could
be a "green light for more reckless behaviour", according
to the Australian Council of Superannuation Investors. More...
In practice and courts
ASIC Corporations (Amendment) Instrument 2021/550
Extends existing licensing relief for public offer trustees to include all registrable superannuation entities to ensure that non-public offer trustees are regulated consistently with public offer trustees under the Corporations Act 2001: See 21-141MR Amended: Instrument 2016/378 (16 June 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.
ASIC Consultations: CP 340 Breach reporting and
related obligations
Comments closed 3 June 2021. This consultation paper
sets out our proposals for providing guidance to Australian
financial services 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.
APRA publishes additional FAQs and worked examples on
the Superannuation Data Transformation Phase 1 reporting
standards
Included are worked examples for reporting under SRS 550.0
Asset Allocation, SRS 705.0 Components of Net Return, SRS 705.1
Investment Performance and Objectives and SRS 706.0 Fees and
Costs. APRA is releasing FAQs and worked examples to clarify
reporting issues raised by RSE licensees and to help them meet
their reporting obligations. he FAQs are available on the APRA
website at: Frequently Asked Questions - Superannuation Data
Transformation (18 June 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 at: Consultation on remuneration requirements for all
APRA-regulated entities.
Reminder: 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. Further information is
available at the Treasury website. More...
Cases
Rothnie and Australian Securities and
Investments Commission (Taxation)
[2021] AATA 1545
TAXATION AND COMMERCIAL - Australian Securities and Investments
Commission - financial services provider - banning order under s
920A of the Corporations Act 2001 (Cth) - breach of banning order -
failure to act in the best interest of clients - failure to provide
appropriate advice - failure to prioritise clients' interests -
contravention of financial services laws. Corporations Act 2001
(Cth) - Financial Sector Reform (Hayne Royal Commission Response -
Stronger Regulators (2019 Measures)) Act 2020 (Cth).
Legislation
Commonwealth
Bills
Financial Sector Reform (Hayne Royal
Commission Response - Better Advice) Bill 2021
HR 24/06/2021 - Tax (financial) advisers will no longer be
regulated by the Tax Practitioners Board but instead will be
regulated only under the Corporations Act 2001. The Bill will also
give the Minister the power to extend the cut-off date for certain
existing financial advisers to pass the exam. The Government will
use the power to extend the cut-off date to 30 September 2022 for
advisers who have attempted the exam twice prior to 1 January
2022.
Financial Regulator Assessment Authority
(Consequential Amendments and Transitional Provisions) Bill
2021
Senate 2nd reading 15/06/2021 - 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
Senate 2nd reading 15/06/2021 - 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 3rd reading 17/06/2021 - 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.
Regulations
Treasury Laws Amendment (Self Managed
Superannuation Funds) Regulations 2021
25/06/2021 - this instrument amends relevant provisions in the
Superannuation Industry (Supervision) Regulations 1994 that refer
to self managed superannuation funds (SMSFs) and small
superannuation funds (SSFs) to ensure the provisions accord with
the increased member limits of SMSFs and SSFs provided by the
Treasury Laws Amendment (Self Managed Superannuation Funds) Act
2021 (the Act).
Superannuation Legislation Amendment
(Superannuation Drawdown) Regulations 2021
24/06/2021 - these regulations amend the Retirement Savings
Accounts Regulations 1997 and the Superannuation Industry
(Supervision) Regulations 1994 to extend the temporary reduction in
minimum payment amounts for account based pensions, allocated
pensions and market linked pensions (and for the equivalent annuity
products) by half for the 2021-22 financial year.
Financial Sector (Collection of Data)
(reporting standard) determination No. 24 of
2021
16/06/2021 - this instrument determines Reporting Standard RRS
710.0 ABS/RBA Audit Requirements for Registered Financial
Corporations - EFS collection and revokes Financial Sector
(Collection of Data) (reporting standard) determination No. 22 of
2019, including Reporting Standard RRS 710.0 ABS/RBA Audit
Requirements for Registered Financial Corporations - EFS
collection.
Anti-Money Laundering and Counter-Terrorism
Financing Rules Amendment Instrument 2021 (No.
1)
15/06/2021 - this instrument amends the Anti-Money Laundering and
Counter-Terrorism Financing Rules Instrument 2007 (No. 1) to set
out the requirements of the expanded circumstances in which
reporting entities may rely on identification procedures undertaken
by a third party, and strengthen protections around correspondent
banking.
ASIC Credit (Mandatory Credit Reporting)
Instrument 2021/541
15/06/2021 - this instrument determines certain kinds of accounts
as not being eligible credit accounts for the purposes of section
133CO of the National Consumer Credit Protection Act 2009.
ASIC Corporations (Amendment) Instrument
2021/510
11/06/2021 - this instrument amends the ASIC Corporations (Repeal
and Transitional) Instrument 2016/396, the ASIC Corporations
(Foreign Financial Services Providers - Limited Connection)
Instrument 2017/182 and the ASIC Corporations (CSSF-Regulated
Financial Services Providers) Instrument 2016/1109 to preserve the
effect of relief. It also amends the ASIC Corporations (Foreign
Financial Services Providers-Funds Management Financial Services)
Instrument 2020/199 to delay commencement.
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.