In the media
ASIC extends temporary financial advice COVID-19 relief
measures
MEDIA – 14 October 2021 – the record of advice
relief measure is extended to April 2022, as well as the "time
critical" relief measure that gave financial advisers
additional time to give their clients an SoA.
More...
ASIC further extends temporary financial advice relief
measures in COVID-19 instrument
ASIC – 14 October 2021 – ASIC announced that
it will further extend temporary relief measures designed to help
the financial advice industry provide consumers with affordable and
timely advice during the COVID-19 pandemic. The relief will now end
on 15 April 2022.
More...
Investment governance frameworks must evolve as super
funds grow
MEDIA – 12 October 2021 – with some
superannuation funds projected to grow by 200 per cent to 300 per
cent by 2030, super funds will need to address key challenges in
their investment governance arrangements, according to KPMG.
More...
FSC to ban occupational exclusions in default group life
insurance in superannuation
FSC – 11 October 2021 – the FSC has announced
it will be introducing an enforceable FSC Standard to prohibit the
use of exclusions and restrictive disability definitions because a
member is employed in a high-risk occupation. It will apply to all
default group life insurance in superannuation amongst FSC members.
Submissions to the FSC's consultation process are available
here.
More...
ASIC commences proceedings against superannuation
trustee Diversa Trustees Limited
ASIC – 11 October 2021 – ASIC has commenced
civil penalty proceedings in the Federal Court against Diversa
Trustees Limited (Diversa).This is the second case
taken by ASIC against a professional trustee for conduct by
outsourced service providers.
More...
Super complaints on the decline
MEDIA – 07 October 2021 – AustralianSuper has
been the most complained-about super fund in FY21, according to the
Australian Financial Complaints Authority, but overall the sector
has seen a reduction of complaints from the previous year.
More...
PYS and PMIF lead super complaints
MEDIA – 07 October 2021 – over 5,000
superannuation product complaints were received by the Australian
Financial Complaints Authority last financial year, half of which
are related to impacts of the Protecting Your Super and Putting
Member's Interests First legislations.
More...
Govt makes CDR changes
MEDIA – 06 October 2021 – the Federal
Government has made amendments to the consumer data right
(CDR) rules to support increased participation in
the new regime. The changes followed consult during July which:
Empowered consumers to share their data easily and securely with
certain trusted professional advisers, including their accountant,
tax agent, financial counsellor, financial adviser or mortgage
broker.
More...
New rules to support participation in Australia's
Consumer Data Right
TREASURY – 05 October 2021 – the Morrison
Government has made amendments to the Consumer Data Right Rules
(version 3 of the rules) that will support increased participation
in the Consumer Data Right by businesses and empower consumers to
get the value of their data through a broad range of service
offerings.
More...
FSC: Capital concentration and competition policy
– serious issue or tilting at windmills?
FSC – 05 October 2021 – the House of
Representatives Standing Committee on Economics is currently
holding an inquiry into the implications of common ownership and
capital concentration in Australia.
More...
Leading the development of solutions to reduce
compliance burdens – one of the biggest differences industry
bodies can make
FSC – 05 October 2021 – the FSC has made no
secret of the need to reduce the regulatory burden on the financial
services industry, particularly financial advice, in its advocacy
to Government and regulators. More...
ASFA targets commitments for net-zero by 2050
ASFA – 05 October 2021 – the association is
seeking feedback on the direction of its climate change strategy
with the aim of mitigating climate change risk in portfolios,
following the release of a discussion paper.
More...,
Half of employers not aware of YFYS rules
MEDIA – 05 October 2021 – over half of
employers are not aware of the Your Future, Your Super and
'stapling' legislative changes and there is room for super
funds to improve on amplifying value and sharpening communication
with members, according to a report.
More...
Additional Banking, Superannuation and Financial
Services Royal Commission reforms take effect
TREASURY – 01 October 2021 – consumers and
small businesses will benefit from additional protections with the
commencement of a further nine recommendations of the Banking,
Superannuation & Financial Services Royal Commission and the
Design and Distribution Obligations from October 2021.
More...
Still issues with single disciplinary body
legislation
MEDIA – 30 September 2021 – the Financial
Services and Credit Panel will only convene for serious issues, but
there are still issues with the single disciplinary body
legislation according to the Association of Financial Advisers.
More...
In practice and courts
Consultation: Better Advice Bill – exposure draft
regulations
The Better Advice Bill establishes a single disciplinary
body and new registration system for financial advisers, including
tax (financial) advisers. The exposure draft regulations and
legislative instrument will implement key elements to support the
operation of the Better Advice Bill. The Exposure
Draft Regulations and Legislative Instruments are available on
the Treasury website. Submissions are invited by 15 October 2021
and can be sent to SDBconsultation@treasury.gov.au.
ASIC Updates
13/10/2021 ASIC Corporations (Amendment)
Instrument 2021/848
and
INFO 262 FAQs: COVID-19 information
for advice licensees and financial advisers
Extends two temporary relief measures that facilitate
access to timely and affordable personal advice for existing
clients of providing entities that is in connection with the
adverse economic effects of COVID-19: See
21-269MR Amended: Instrument 2021/268.
08/10/2021 – updated – issue date
unchanged
RG 21 How ASIC charges fees for relief applications;
RG 51 Applications for relief;
RG 234 Advertising financial products and services (including
credit): Good practice guidance;
RG 275 The deferred sales model for add-on insurance;
INFO 82 Apply for relief;
INFO 198 Extended warranties.
01/10/2021 - ASIC Corporations (Design and Distribution
Obligations Interim Measures) Instrument 2021/784
; ASIC Corporations (Amendment) Instrument 2021/785
;
INFO 264 FAQs: Design and distribution
obligations for advice licensees and financial advisers (reissued
6/10/2021)
Provides interim relief so that advice licensees and
financial advisers are no longer required to report to issuers if
they have received nil complaints during the reporting period
(ahead of the Australian Government's stated policy intent to
make this change in the legislation)
Amended: Class Order [CO
14/1262]; ASIC Instrument 2015/682.
INFO 213 Marketplace lending
(peer-to-peer lending) products (reissued);
INFO 229 Limited AFS licensees:
Complying with your licensing obligations (reissued);
INFO 250 Giving AFS and credit
licensees information about their representatives (reissued)
Updated to reflect the new requirement for AFS and credit
licensee to submit reportable situations (previously 'breach
reports') to ASIC via the ASIC
Regulatory Portal commencing 1 October 2021: See
Reportable situations for AFS and credit licensees.
RG 38 The hawking prohibition
(reissued);
REP 701 Response to submissions
on
CP 346 The hawking prohibition:
Update to RG 38; ASIC Corporations (Amendment and Repeal)
Instrument 2021/799
Updated to reflect reforms to the anti-hawking regime under the Financial
Sector Reform (Hayne Royal Commission Response) Act 2020,
commencing 5 October 2021: See
21-257MR and
21-213MR.
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 publishes additional FAQs on the Superannuation
Data Transformation Phase 1 reporting standards
APRA has made an update to FAQ 1.02 to clarify the next
reporting period due date for Reporting Standard SRS 705.1
Investment Performance and Objectives. The FAQs are available on
the APRA website at:
Frequently Asked Questions – Superannuation Data
Transformation.
APRA has also published a Change Log for the SDT APRA Connect
artefacts. The APRA Connect artefacts and Change Log are available
on the APRA website at: APRA
Connect Taxonomy Artefacts (08 October 2021).
APRA publishes new FAQs on the 2021 MySuper Product
Heatmap
The APRA has released a new set of frequently asked
questions (FAQs) on the upcoming 2021 MySuper
Product Heatmap, which is due to be released in December 2021. The
FAQs are available on the APRA website at:
MySuper Heatmap Frequently Asked Questions (06 October
2021).
AASB Consultations
The following AASB documents are open for comment:
ED 309
Disclosure Requirements in Australian Accounting Standards –
A Pilot Approach (comments due by 15 October 2021). Please have
your say and send your comments to the AASB via the AASB
website.
AFCA Datacube updated with latest complaint
statistics
The Australian Financial Complaints Authority
(AFCA) has updated its online comparative
reporting tool, the AFCA Datacube, to include information about
financial complaints lodged from 1 July 2020 to 30 June 2021 (07
October 2021).
More...
AFCA 2020–21 Annual Review
The 2020–21 AFCA Annual Review is now available (07
October 2021).
More...
AFCA updates processes to align with ASIC Regulatory
Guide 271
AFCA has updated its process map and Operational
Guidelines to reflect the changes outlined in ASIC RG 271 (new
timelines and requirements). See the process map here. See
AFCA's Operational Guidelines here
(01 October 2021).
More...
AFCA updates Operational Guidelines
The changes include: Aligning AFCA's processes with
ASIC Regulatory Guide 271 Internal Dispute Resolution (RG 271),
which comes into effect on 5 October 2021 and Updating guidelines
regarding the death benefit decision objection process, removing
the requirement that an objection must be in writing. The new
Operational Guidelines, as well as previous versions, can be read
here.
More...
AFCA Current Matters
Business interruption insurance test cases (Updated October
2021)
Sterling group investors (Updated October 2021)
FSC: Target Market Determination Templates
The new Design Distribution and Obligations come into
effect on 5 October 2021, and require product issuers to develop
Target Market Determinations (TMDs) for the
products they issue to retail clients. For more information on the
reforms and the FSC's template TMDs and data standards.
More...
FSC Consultations
11 October 2021
Occupational Exclusions Consultation Paper
Industry Superfunds Submissions – 13 October
2021
Review of occupational exclusions in default insurance offered
through MySuper products
AIST Legislation updates
Stay up to date with the status of legislation in
Australia's parliament
Legislation update – 07 October 2021
Legislation update – 13 October 2021
AIST Newsletters
Superannuation Policy News – 14 October 2021
Action needed to ensure workers in high-risk occupations
maintain insurance cover; ASIC extends Covid financial advice
relief; FAQs on super data transformation; CEOs urged to review
whistleblower policies; Changes to cyber reporting regime flagged;
APRA to benchmark funds on risk culture; ATO to acquire AUSTRAC
records for 9 million Australians; AIST's weekly update on the
status of legislation.
More...
Superannuation Policy News – 7 October 2021
APRA releases details on MySuper heatmap timeline; Welcome
fall in super complaints to AFCA; ASIC releases legislative
instruments relating to DDO; Amendments to Consumer Data Right
rules; Critical infrastructure update; Hearings for the Common
Ownership inquiry to resume next week; Call for stronger
compensation scheme; AIST's weekly update on the status of
legislation.
More...
Cases
Schroeder and Australian Securities and Investments
Commission [2021] AATA
3519
CORPORATIONS – banning order – where applicant
banned from providing financial services for a period of six years
– where scope of Tribunal review changed as a result of
legislative amendments – whether applicant should be banned
from providing financial services on the basis that he is not a
'fit and proper person' – whether other grounds for a
banning order in s 920A of the Corporations Act 2001 (Cth)
enlivened – decision under review varied.
Australian Securities and Investments Commission v
Membo Finance Pty Limited [2021] FCA
1166
CORPORATIONS – application by the respondents
seeking to strike out parts of the applicant's further concise
statement pursuant to r 16.21 of the Federal Court Rules 2011 (Cth)
(the Rules) – application by the respondents, in the
alternative, for an order that the applicant provide the
"usual particulars" of the further concise statement
pursuant to r 16.45 of the Rules – where applicant seeks
relief under the National Consumer Credit Protection Act 2009 (Cth)
and the Federal Court of Australia Act 1976 (Cth).
Australian Securities and Investments Commission v RI
Advice Group Pty Ltd [2021] FCA
1193
PRACTICE AND PROCEDURE – application to strike out
parts of Further Amended Statement of Claim (FASOC) – whether
parts of FASOC are ambiguous, likely to cause prejudice,
embarrassment or delay, or fail to disclose a reasonable cause of
action
Corporations Act 2001 (Cth); Federal Court of Australia Act 1976
(Cth); Federal Court Rules 2011 (Cth)
6 In this proceeding ASIC seeks declarations, pecuniary penalties
and various compliance orders against RI Advice for alleged
contraventions of s 912A(1) of the Corporations Act 2001 (Cth) (the
Act). RI Advice describes ASIC's case as a 'novel'
claim as it relates to the cybersecurity obligations of a financial
services provider required under s 912A(1) of the Act. ASIC relies
solely on s 912A(1) of the Act.
Asteron Life & Superannuation Limited, in the matter of
Asteron Life & Superannuation Limited (No 3)
[2021] FCA 1148
INSURANCE – life insurance – scheme for
transfer of life insurance business – application to Court
for confirmation of scheme pursuant to s 193 of the Life Insurance
Act 1995 (Cth) (Act) – principles applicable to confirmation
of scheme of transfer
INSURANCE – application pursuant to s 191(5) of the Act to
dispense with the requirement to comply with s 191(2)(c) –
principles applicable to dispensation. Corporations Act 2001 (Cth);
Financial Sector (Shareholdings) Act 1998 (Cth); Insurance
Acquisitions and Takeovers Act 1991 (Cth).
Boland v SAS Trustee Corporation
[2021] NSWDC 545
INTERLOCUTORY MOTION – Motion for dismissal of
proceedings for abuse of process pursuant to UCPR 36.14 –
Consideration of principles applicable – Dismissal not
appropriate where matters of fact and law are debateable
JURISDICTION – Application of section 10B(1) of the Police
Regulation (Superannuation) Act 1906 (NSW) to a former police
officer – Status of previous decision of the Industrial Court
in Court Session in Berrick Boland v SAS Trustee
Corporation in light of SAS Trustee Corporation v
Rossetti holding that the Industrial Relations Commission in
Court Session lacked jurisdiction – Whether the previous
decision of the Industrial Relations Court in Court Session in
respect of s 10B(2) of the Police Regulation (Superannuation) Act
1906 (NSW) precluded the District Court from hearing a further
application under s 21 of the Police Regulation (Superannuation)
Act 1906 (NSW) by reason of issue estoppel and res judicata
STATUTORY INTERPRETATION – Application of s 48 of the
Interpretation Act 1987 (NSW) to s 10 B (2) Police Regulation
(Superannuation) Act 1906 (NSW).
Legislation
Commonwealth
Regulations
ASIC
Corporations (Amendment) Instrument
2021/848
13/10/2021 – this instrument amends the ASIC
Corporations (COVID-19 – Advice-related Relief) Instrument
2021/268 to give effect to two temporary relief measures that
facilitate access to timely and affordable personal advice for
existing clients of providing entities that is in connection with
the adverse economic effects of COVID-19.
Competition
and Consumer (Consumer Data Right) Amendment Rules (No. 1)
2021
05/10/2021 – this instrument amends the Competition
and Consumer (Consumer Data Right) Rules 2020 to facilitate greater
participation in the Consumer Data Right (CDR)
regime by participants and consumers, provide greater control and
choice to consumers in sharing their data, promote innovation of
CDR offerings including intermediary services, and enable services
to be more effectively and efficiently provided to customers.
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.