News
FOFA disadvantages early move on
fee-for-service
25-May-2012 - Draft regulation released on grandfathering and
conflicted remuneration this week, may disadvantage advisers who
have already moved to a fee-for-service model in line with the new
FOFA regime. The Financial Planning Association of Australia (FPA)
manager said that while his organisation is seeking clarification,
because product fees are excluded from a fee disclosure statement,
trail commissions embedded in product fees would therefore be
exempt. More...
APRA empowered to chase rogue superfund
directors
24-May-2012 – The Superannuation Legislation Amendment
(Trustee Obligations and Prudential Standards) Bill 2012 provides
the Australian Prudential Regulation Authority (APRA) with the
power to issue standards in relation to superannuation prudential
matters and make the relevant consequential amendments. More...
Government closes super regulatory gap
24-May-2012 - The Lower House of Parliament has passed legislation
that will help close a "regulatory gap" within
Australia's superannuation system by giving the (APRA greater
powers to pursue problem directors. The measures contained in the
bill implement changes recommended by the Cooper Review into the
governance, efficiency, structure and operation of Australia's
superannuation system, Shorten said in a statement. More...
Infrastructure schedule not relevant:
ASFA
24-May-2012 - The launch of the National Infrastructure
Construction Schedule (NICS) will do little to help superannuation
funds allocate money to infrastructure projects, according to the
Association of Superannuation Funds of Australia (ASFA). More...
Treasury releases further FOFA drafts
24-May-2012 - Treasury has released two new exposure drafts on the
government's Future of Financial Advice (FOFA) reforms focusing
on product fees, a delayed application date for risk insurance
remuneration and regulations on grandfathering http://www.investordaily.com.au/14284.htm
No elation, but $19m certainty
24-May-2012 - The 309 superannuant's who had invested $65
million in now collapsed ''principal-protected''
notes were over 60. Bringing their class action to trial would take
another two years, with combined legal costs of $15 million, with a
settlement offer of $19 million on the table, a
"'Compromise in litigation" according to Justice John
Sackar of the New South Wales Supreme Court, explaining his reasons
for signing off on the class action.
More...
SPAA calls for last resort compensation
scheme
SELF MANAGED SUPER FUNDS PROFESSIONALS' ASSOCIATION OF
AUSTRALIA LIMITED 23-May-2012 - SPAA CEO believes there is a
convincing argument to establish a last resort compensation scheme
for the financial services sector. Superannuation fraud affects
ordinary Australians saving for their retirement, and any solution
must address a problem that impacts the whole financial services
industry, including superannuation.
More...
Superfund Directors under greater scrutiny thanks to
Government Bill
BILL SHORTEN 23-May-2012 - Minister for Financial Services and
Superannuation Bill Shorten welcomed the passage of legislation
through the House of Representatives that improves requirements for
the trustees of superannuation funds and provides APRA with greater
powers in respect of superannuation. The measures contained in the
Superannuation Legislation Amendment (Trustee Obligations and
Prudential Standards) Bill 2012 implement changes recommended
by the Cooper review into the governance, efficiency, structure and
operation of Australia's superannuation system.
More....
Industry super funds continue to outperform retail
sector
AFR; INDUSTRY SUPER NETWORK 22-May 2012 - New data released by
research house SuperRatings shows that the industry super fund
sector has once again outperformed the retail super sector in the
SR 50 Balanced Option over one, five, seven and ten year periods to
30 April 2012. The new data shows that industry super funds
achieved a median rolling return of 5.76% over the last ten years,
compared to a median rolling rate of return of 3.87% by retail
funds over the same period, a difference of 1.89%.
More...
Bill Shorten fingers financial advisers on Trio
Capital
17-May-2012 - Self-managed superannuation fund (SMSF) trustees
need to consider paying a levy to be able to access the same
compensation arrangements as people in Australian Prudential
Regulation Authority (APRA)-regulated funds, according to the
Minister for Financial Services, Bill Shorten.
More...
Financial planning industry tackles code of conduct
confusion
17-May-2012 -The code of conduct carve-out to opt-in requirements
has led to questions over what happens when there is a disparity
between the approach of financial planning licensees and the
obligations of authorised representatives, as well as suggestions
larger licensees could look to submit their own codes.
More...
Government and regulators must act on bipartisan Trio
report
MATHIAS CORMANN 16-May-2012 137P1814- The Coalition welcomes the
release of the report on the collapse of Trio Capital by the
Parliamentary Joint Committee on Corporations and Financial
Services and calls on the government and regulators to act on its
recommendations. The Trio Inquiry has highlighted the considerable
financial losses and the physical and emotional toll suffered by
hundreds of Australian investors who were defrauded in the largest
superannuation fraud in Australian history.
More...
SPAA to host 9th State Technical Conferences for SMSF
professionals
SELF MANAGED SUPER FUNDS PROFESSIONALS' ASSOCIATION OF
AUSTRALIA LIMITED 22-May-2012 – The SMSF
Professionals' Association of Australia (SPAA) will hold its
annual series of State Technical Conferences in five capital cities
around Australia in July and August to ensure its members stay
abreast of standards, regulations and changes in the industry. They
will be held in Sydney (24 July); Melbourne (25 July); Adelaide (31
July); Perth (1 August); and Brisbane (7 August). More...
Self Managed Superannuation Fund Ruling SMSFR
2012/1
AUSTRALIAN TAXATION OFFICE - ATO 23/05/12 144P1056 - Self Managed
Superannuation Funds: limited recourse borrowing arrangements -
application of key concepts. Previously issued as SMSFR 2011/D1.
Application: applies to arrangements entered into on or after 7
July 2010 (including an arrangement that is a refinancing of a
borrowing of money under an arrangement entered into before, on or
after 7 July 2010
MySuper Authorisation and Transition – May
2012
The APRA MySuper Consultation Package released in May includes:
Discussion Paper - MySuper authorisation and transition
standard ;
Application Form - Authority to offer a MySuper product ;
Instruction Guide - Application form - Authority to offer a MySuper
product ;
Draft Prudential Standard SPS 410 MySuper Transition To view
other material relating to APRA's superannuation reforms, click
here.
Privacy Amendment (Enhancing Privacy Protection) Bill
2012 introduced
23-May-2012 - The
Privacy Amendment (Enhancing Privacy Protection) Bill 2012 has
been introduced into the House of Representatives. The Bill will
amend the Privacy Act to:
- Create the Australian Privacy Principles (APPs), a single set of privacy principles applying to both Commonwealth agencies and private sector organisations, which replace the Information Privacy Principles (IPPs) for the public sector and the National Privacy Principles (NPPs) for the private sector. The Bill introduces more comprehensive credit reporting, new provisions on privacy codes and the credit reporting code and Clarify the functions and powers of the Privacy Commissioner.
Cases
Salton and Commonwealth Superannuation Corporation
[2012] AATA 305
SUPERANNUATION – beneficiary – commonwealth
superannuation scheme – spouse benefit Widow - marital or
couple relationship - whether separation due to illness - whether
marital relationship would exist but for illness - Delusional
Disorder (Persecutory Type) - Schizophrenia - Alcohol Dependence
with Physiological Dependence - American Psychiatric Association
Diagnostic and Statistical Manual of Mental Disorders IV. More...
Legislation
Superannuation Legislation Amendment (Stronger Super)
Bill
BILL SHORTEN 24 May 2012 145P1006 - Minister for Financial
Services and Superannuation Mr Shorten second reading speech
introducing the legislation. The Bill and Explanatory Memorandum
can be viewed
here.
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