In the media
Appointment of members to the Australian Government
Financial Literacy Board
TREASURY – 25 January 2018 - The Minister for Revenue and
Financial Services, the Hon Kelly O'Dwyer MP, has today
announced reappointments to the Australian Government Financial
Literacy Board (the Board), commencing on on 1
February 2018.
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O'Dwyer proposes compulsory unpaid super
law
MEDIA – 25 January 2018 - The Federal Government is proposing
all employers transition to the Single Touch Payroll
(STP) system from 1 July 2019 under its
superannuation guarantee reform package.
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Consultation on protecting your superannuation
entitlements
TREASURY – 24 January 2018 - The Government has released
draft legislation to protect workers' superannuation
entitlements and modernise the enforcement of the superannuation
guarantee. The draft laws will extend Single Touch Payroll to all
employers from 1 July 2019, which will improve the reporting of
superannuation obligations and improve the Australian Taxation
Office's ability to get real time information about an
employer's compliance.
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AIST welcomes Government measures to tackle non-payment
of super
AIST – 24 January 2018 - AIST has today welcomed the
Government's announcement of a package of measures to protect
workers' super entitlements and tackle the problem of unpaid
super.
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Product flogging still a problem in financial
advice
MEDIA – 25 January 2018 - After all of the scandals,
inquiries, reviews and new laws and regulations it's surprising
the extent to which financial planners employed by or aligned with
the big four banks and AMP flog their employers' superannuation
funds and other financial products to punters.
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Big banks, biased financial advisers, and the three
tricks to avoid them
MEDIA – 25 January 2018 - This week the big banks got more
bad press when the corporate regulator ASIC declared that their
huge networks of financial advisers were failing to operate in the
best interests of their customers. The report, which covered the
financial advice arms of the Commonwealth Bank, Westpac, ANZ, NAB
and AMP, found that an astonishing 75 per cent of advice provided
was not in the best interests of customers.
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ASIC reports on how large financial institutions manage
conflicts of interest in financial advice
ASIC – 24 January 2018 - An ASIC review of financial advice
provided by the five biggest vertically integrated financial
institutions has identified areas where improvements are needed to
the management of conflicts of interest. The review looked at the
products that ANZ, CBA, NAB, Westpac and AMP financial advice
licensees.
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CBA to pay $1.9 million in advice
compensation
MEDIA – 24 January 2018 - The Commonwealth Bank is expected
to pay out $1.9 million in compensation over poor advice provided
by five financial planners, in the latest case of remediation at
the country's biggest bank.
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Update on Commonwealth Bank financial planning licence
conditions: progress on compensation scheme
ASIC – 23 January 2018 - Under additional licence conditions
imposed on Commonwealth Financial Planning Ltd and Financial Wisdom
Ltd by the Australian Securities and Investments Commission
(ASIC), CBA will review all advice given to
customers of five former representatives. CBA will pay compensation
where customers have suffered loss.
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FSC response to ASIC Report 562, "Financial advice:
Vertically integrated institutions and conflicts of
interest"
FSC – 24 January 2018 - ASIC's review shows there is
still work to be done to address community and regulator concerns
about the quality of advice in Australia. The FSC and its members
welcome regulatory scrutiny to ensure that consumers are receiving
the highest standard of advice, and to ensure conflicts of interest
are managed in a way that puts consumers first.
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'Perfect storm': Global financial system showing
danger signs, says senior OECD economist
MEDIA – 23 January 2018 - The world financial system is as
dangerously stretched today as it was at the peak of the last
bubble but this time the authorities are caught in a "policy
trap" with few defences left, a veteran central banker has
warned.
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ASIC warns financial services licensees against
'cutting corners' on death nomination forms
ASIC – 19 January 2018 - The Australian Securities and
Investments Commission (ASIC) is putting the financial advice
sector on notice about meeting requirements for witnessing
signatures, after finding issues with advisers failing to correctly
witness binding death nomination forms for superannuation benefits.
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Former CBA planner banned after cutting and pasting
signatures
MEDIA – 18 January 2018 - A former Commonwealth Bank
financial planner has been banned from the industry for five years
after the corporate regulator alleged she cut customer signatures
from documents kept on file and pasted them onto new documents.
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In practice and courts
Consultation on protecting your superannuation
entitlements
The Government has released draft legislation to protect
workers' superannuation entitlements and modernise the
enforcement of the superannuation guarantee. The draft legislation
and supporting materials are available on the Treasury
website, and interested stakeholders are encouraged to provide
their views. Submissions are invited by 16 February 2018.
Reminder: Royal Commission into Misconduct in the
Banking, Superannuation and Financial Services
Industry
The Inquiry will consider the conduct of banks, insurers, financial
services providers and superannuation funds (not including
self-managed superannuation funds). The proposed terms of reference
will form the basis of the Letters Patent, terms of which will be
recommended to His Excellency, pursuant to the Royal
Commissions Act 1902 (18 December 2017).
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More.... Note: Commissioner Hayne is
authorised to submit an interim report to the Governor-General no
later than 30 September 2018, and required to submit a final report
no later than 1 February 2019.
REP 562 Financial advice: Vertically integrated
institutions and conflicts of interest
ASIC has conducted a project to examine how Australia's largest
banking and financial services institutions manage the conflict of
interest that arises as a result of institutions engaging in both
the provision of personal advice to retail clients and the
manufacture of financial products under a vertically integrated
business model. The review found, 68% of clients' funds were
invested in in-house products. Released 24 January 2018.
More...
Current Inquiries - Economics Legislation
Committee
Financial Sector Legislation Amendment (Crisis Resolution
Powers and Other Measures) Bill 2017 [Provisions]
Status: Accepting Submissions Date Referred: 16 November 2017
Submissions Close: 18 December 2017.
Reporting Date: 09 February 2018.
Consumer protection in the banking, insurance and financial
sector
Status: Submissions Closed. Date Referred: 29 November 2016
Reporting Date: 28 March 2018.
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.