In the media
Outcome of consultation on deferred sales model for add
on insurance products
TREASURY – 08 July 2021 – the Morrison
Government will provide consumers and industry with greater
certainty in relation to the insurance products that will be
covered by the deferred sales model and anti-hawking regime. The
Government will exempt from the deferred sales model the following
classes of insurance products: Insurance sold within superannuation
(including group life insurance).
More...
Super members trust funds to help make life insurance
decisions
MEDIA – 06 July 2021 – superannuation funds
need to ensure they are engaging with members on insurance in super
especially after Your Future, Your Super stapling measures may lead
to inappropriate cover.
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Temporary delay to SMSF member increase
MEDIA – 06 July 2021 – advisers have been
advised to refrain from making changes to increase the number of
members in self-managed super funds due to an implementation delay
by the Australian Taxation Office, despite the changes coming into
effect on 1 July, 2021.
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AFCA receives 70,000 financial complaints in
2020-21
AFCA – 05 July 2021 – Australians in dispute
with banks, insurers, super funds, investment firms and financial
advisers lodged more than 70,000 complaints with the Australian
Financial Complaints Authority (AFCA) in the past
12 months.
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Westpac to remediate $87m to advice customers
The big four bank will remediate customers of its
financial advice business for failure to notify them of corporate
actions between 2005 to 2019 (02 July 2021).
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ASIC releases adviser feedback on affordable
advice
MEDIA – 02 July 2021 – the corporate
regulator's consultation found that limited advice is too
costly to provide and there is a lack of demand for digital advice.
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IGR predicts superannuation to do the heavy lifting in
the face of burgeoning health and aged care costs
ASFA – 28 June 2021 – the Government's
Intergenerational Report (IGR) published,
highlights the increasingly important role of Australia's
superannuation system in supporting the living standards of future
generations of retirees.
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In practice and courts
Consultations
Financial Sector Reform (Hayne Royal Commission
Response–Better Advice) Bill 2021 [Provisions]
Status: Accepting Submissions – date Referred: 24 June 2021;
Submissions Close: 09 July 2021
Reporting Date: 28 July 2021.
ASIC: Industry response to consultation on promoting
consumer access to affordable advice
1 July 2021 – ASIC released an infographic summary
of the response to
Consultation Paper 332 Promoting access to affordable advice for
consumers (CP 332). The infographic sets out the key issues
raised by respondents in their submissions to CP 332.
The response to CP 332 was unprecedented, with ASIC receiving 466
submissions from financial advisers, licensees, industry
associations and relevant stakeholders.
More...
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.
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
This consultation paper set 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 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
here.
APRA additional FAQs on the Superannuation Data
Transformation Phase 1 reporting standards
2 July 2021 – The APRA has published additional
frequently asked questions (FAQs) for registrable superannuation
entity licensees to provide further guidance on meeting the
Reporting Standards for Phase 1 of the Superannuation Data
Transformation. The FAQs are available on the APRA website
here.
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...
Legislation
Commonwealth
Acts
Treasury
Laws Amendment (2021 Measures No. 4) Act
2021
05/07/2021 – Act No. 72 of 2021.
Bills
Financial Regulator Assessment Authority (Consequential
Amendments and Transitional Provisions) Bill
2021
Assent Act no: 64 Year: 2021 29 June 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
Assent Act no: 63 Year: 2021 29 June 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
Assent Act no: 72 Year: 2021 30 June 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
Australian
Prudential Regulation Authority Supervisory Levies Determination
2021
29/06/2021 – the determination ensures the recovery
of APRA's costs, and the costs incurred in connection with
supporting the integrity and efficiency of markets and promoting
the interests of consumers in the financial system, from industries
that are prudentially regulated by APRA.
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.