In the media
Check on superannuation trustee preparedness for new IDR
requirements finds more work required
ASIC - 02 September 2021 - a recent ASIC survey of
registrable superannuation entities (trustees) about their
preparedness for the new enforceable internal dispute resolution
obligations has identified some important areas requiring further
work. View the Summary of the survey findings. More...
New law set to make it easier for victim-survivors of
family violence to get their fair share of super entitlements
AIST - 02 September 2021 - the Australian Institute of
Superannuation Trustees, Women in Super, HESTA and Women's
Legal Service Victoria have welcomed the passage through Parliament
of legislation that will help stop family violence perpetrators
from hiding superannuation assets in family law proceedings.
More...
APRA releases inaugural Your Future, Your Super
Performance Test Results
APRA - 31 August 2021 - the APRA has released the results
from the inaugural MySuper Product Performance Test. APRA has
assessed 76 MySuper products with at least 5
years of performance history against the objective benchmark. A
total of 13 products failed to meet the objective benchmark.
Note: Trustees of failed products are required to write to members
by 27 September 2021 advising them of their Performance Test
outcome and providing the details of the ATO's YourSuper
comparison tool: YourSuper comparison tool. More...
First step on performance testing but increased focus
needed on the "poorer-performing end of spectrum"
AIST - 31 August 2021 - the AIST notes the release of new
performance data for default MySuper products, but remains
concerned that millions of Australians will be unaware they are in
underperforming and untested super products that aren't as yet
covered by the new laws. More...
ASFA urges consumers to treat YFYS benchmark results
with extreme caution
ASFA - 31 August 2021 - the ASFA has urged consumers to
exercise caution in how they interpret the results of the Your
Future, Your Super performance test and to think carefully before
making important decisions about their superannuation. More...
13 MySuper products fail YFYS performance test
MEDIA - 31 August 2021 - APRA has intensified its
supervision of trustees with products that failed the test and has
requested they provide a report identifying the causes of their
underperformance and how they plan to address them. Trustees have
to monitor their products closely and report important information
to APRA. More...
ASIC affordable advice project on hold due to SDB
MEDIA - 30 August 2021 - the Australian Securities and
Investments Commission's (ASIC) CP 332
'Promoting access to affordable advice for consumers'
project has been put on hold as issues over funding the single
disciplinary body meant ASIC is unsure what it can commit to either
project. More...
Temporary and targeted relief on ASIC levies for
financial advisers
TREASURY - 30 August 2021 - the Morrison Government is
announcing temporary and targeted relief for financial advisers by
reducing the cost recovery levies charged by the ASIC. Treasury
will also review the ASIC Industry Funding Model while this
temporary relief is in place, to ensure it remains fit for purpose
in the longer term given structural changes taking place in the
advice industry. More...
Ex-adviser faces criminal charges for ban breach
MEDIA - 27 August 2021 - the corporate regulator alleges
former financial adviser Lawrence Toledo breached a ban that was in
response for not acting in clients' best interest. More...
APRA releases final remuneration standard
MEDIA - 27 August 2021 - after an "extensive
consultation process" which began in 2019, the prudential
regulator states that its Prudential Standard CPS 511
Remuneration is a "milestone" in strengthening
remuneration practices across the banking, insurance and
superannuation sectors. The standard will come into effect from 1
January 2023. More...
Advisers unlikely to be ruled against in 'know your
client' complaint
MEFIA - 27 August 2021 - there is a strong likelihood that
complaints regarding inappropriate advice will be resolved by
agreement rather than a decision against the advisers, according to
the Australian Financial Complaints Authority. More...
New Statement of Expectation for the Australian
Securities and Investments Commission
TREASURY - 26 August 2021 - a new Statement of
Expectations for the Australian Securities and Investments
Commission (ASIC) has been released, outlining the Government's
priorities for, and expectations of ASIC. A strong and effective
ASIC is essential for the efficient operation of Australia's
financial and corporate sectors for the benefit of households and
businesses. More...
APRA's new Corporate Plan focuses on protecting
today, while preparing for tomorrow
APRA - 26 August 2021 - the APRA has published an updated
Corporate Plan outlining how it intends to ensure the ongoing
strength and resilience of the Australian financial system over the
next four years. More...
NAB to pay $18.5 million penalty for fee disclosure
statement failures
ASIC - 26 August 2021 - the Federal Court has ordered
National Australia Bank Limited (NAB) to pay an
$18.5 million penalty for failures relating to misleading fee
disclosure statements. The Court also declared NAB contravened its
obligations as an Australian financial services licence holder to
act efficiently, honestly and fairly. More...
General and personal advice a concern in Retirement
Income Covenant
MEDIA - 26 August 2021 - in its submission on the
covenant, KPMG has raised concerns for trustees relating to the
difficulty in navigating the divide between general and personal
financial product advice and say trustees should be
exempt. More...
Clarity needed on anti-hawking 'offer'
definition
MEDIA - 24 August 2021 - the corporate regulator needs to
clarify on what constitutes as an offer as there is a contradiction
in its regulatory guide and consultation paper, according to the
Australian Institute of Superannuation Trustees. More...
FSC collaborates with advice sector on advice fee
consent and independence disclosure
FSC - 24 August 2021 - it seems almost every day now that
a new regulation prescribing another form of disclosure is being
piled onto the advice sector. More...
Westpac subsidiaries to pay $10.5 million penalty for
breaches of best interests duty
ASIC - 24 August 2021 - the penalty follows the High
Court's unanimous decision on 3 February 2021 that Westpac
Securities and BT Funds breached their best interests duty when
they provided personal financial product advice in calls made to 14
customers, despite neither firm being licensed to provide personal
advice. More...
In practice and courts
ASIC updates
26/08/2021 ASIC Corporate Plan 2021-25 - Focus
2021-22
Outlines ASIC's priorities over the next four years to achieve
a fair, strong and efficient financial system for all Australians:
See 21-225MR, ASIC's new Statement of Intent and the Australian
Government's Statement of Expectations (26 August
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.
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 consultation: Draft guidance for the hawking
reforms
ASIC's guidance gives additional clarity on how the
changes may affect commercial practices, systems and processes. All
interested stakeholders have until 17 August to provide feedback on
CP 346. ASIC will publish its final guidance in September 2021,
ahead of the revised hawking prohibition commencing on 5 October
2021. More...
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...
APRA quarterly MySuper statistics June 2021
The APRA has released its Quarterly MySuper Statistics
report for the June 2021 quarter. Copies of this publication are
available on the APRA website at: Quarterly superannuation
statistics (31 August 2021).
Copies of this publication are available on the APRA
website here.
APRA releases superannuation statistics for June
2021
The APRA has released its Quarterly Superannuation
Performance publication for the June 2021 quarter.
Key statistics for the superannuation industry as at 30 June 2021
are outlined here (24 August 2021). More...
APRA frequently asked questions on Your Future, Your
Super performance test
The APRA has released a set of frequently asked questions
(FAQs) to provide general and technical guidance
on the Government's Your Future, Your Super performance
test. The FAQs are available on the APRA website at: Your Future, Your Super Frequently Asked
Questions (25 August 2021).
SMSF Association Submissions
13/08/2021 SMSF Association Submission - Compensation Scheme
of Last Resort
AIST Submissions
AIST submission: Response to Superannuation
Portfolio Holdings Disclosure consultation
31 August 2021 - AIST proposes specific changes to the Regulations
to ensure disclosure does not prejudice members best financial
interests.
AIST Submission: Strengthening Australia's
cyber security regulations and incentives
27 August 2021 - the current regulatory settings in the
superannuation sector can respond to emerging cyber related
governance risks.
Cases
Brady v NULIS Nominees (Australia)
Limited in its capacity as trustee of the MLC Super
Fund [2021] FCA 999
PRACTICE AND PROCEDURE - representative proceeding under Part IVA
of the Federal Court of Australia Act 1976 (Cth) - application by
respondent for appointment of sample group member - where issues to
be resolved at trial include whether a group member whose
entitlement to access their benefits at the relevant time had not
vested could have suffered loss - whether appointment of sample
group member necessary to avoid requiring determination of a
hypothetical and advisory question - where applicant's
entitlement to access their benefits had vested at the relevant
time - where risk of determination of a hypothetical and advisory
question if no sample group member appointed - application
allowed.
Legislation
Commonwealth
Bills
Treasury Laws Amendment (2021 Measures No.
7) Bill 2021
27/08/2021 - a Bill for an Act to amend the law relating to
taxation and superannuation, and for related purposes
Schedule 2 - transitional provisions relating to the repeal of the
Superannuation (Resolution of Complaints) Act 1993
Schedule 2 to the Bill amends the AFCA Act to facilitate the
closure and any transitional arrangements associated with AFCA
replacing the SCT.
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.