In the media
Government announces $51m to pursue financial
misconduct
The government made the announcement that more than $51
million would be given to pursue criminal prosecutions for
financial misconduct. The Treasurer said the fund would be able to
implement the findings of the commission and also act as a
deterrent to misconduct in the financial services (16 November
2018).
More...
Government bends to industry super funds
In a move that will please industry superannuation funds,
the Federal Government has announced it will extend the so-called
"superannuation outcomes test" to choice products, most
of which exist within retail superannuation funds (15 November
2018).
More...
FSC targets scale of under-performing industry fund
defaults
In a submission guaranteed to enrage some industry
superannuation funds, the FSC has used a submission to the
Productivity Commission (PC) to utilise the
PC's own analysis to point to the problem of underperforming
not-for-profit funds ( 15 November 2018).
More...
Super funds will determine 'dangerous
occupations' carve-out
Superannuation funds themselves will be the ones who
decide which members will be covered by the Government's
so-called "dangerous occupations carve-out" to its new
insurance inside superannuation rules (15 November 2018).
More...
Call for compulsory annual reporting on adviser
trails
Superannuation funds should be required by law to inform
members if they are being subjected to the payment of trailing
commissions to financial advisers, according to the nation's
largest industry superannuation fund, AustralianSuper. The big fund
also wants grandfathered commissions to be banned (15 November
2018).
More...
New ASFA Board members announced
The Association of Superannuation Funds of Australia
(ASFA) is pleased to welcome two new members who
have been appointed to fill casual vacancies on the ASFA Board:
Deanne Stewart, incoming Chief Executive Officer, First State Super
as a public sector representative and John McMurtrie, Managing
Director, Link Group as a service provider representative (14
November 2018).
More...
FSC: Franking credit refunds benefit millions of
Australian super fund members
A survey of large super funds by the Financial Services
Council (FSC) has found it is likely that the
largest group of people benefiting from franking credit refunds are
ordinary Australians who are members of large super funds (13
November 2018).
More...
Rice Warner counters Grattan super claims
Actuarial research house, Rice Warner has countered the
latest Grattan Institute claims around superannuation and has
argued that the superannuation guarantee (SG)
should be raised to 12 per cent (13 November 2018).
More...
APRA announces Terms of Reference for enforcement
strategy review
APRA has announced Terms of Reference for a review of its
enforcement strategy. The Review will be led by APRA Deputy Chair
John Lonsdale, supported by APRA staff and external advisers as
necessary (12 November 2018).
More...
Senators support product design reform
A Treasury bill that would overhaul the way financial
products including insurance are sold has been backed by the Senate
Economics Legislation Committee (12 November 2018).
More...
Life insurance industry begins rebuild with new consumer
code
A radical overhaul of the code governing the conduct and
practices of Australian life Insurers which belong to the Financial
Services Council (FSC) has been released for
public consultation. The draft FSC Life Insurance Code of Practice
is designed to lift standards in product design, sales,
underwriting, customer service, complaints and claims handling (12
November 2018).
More...
Court orders penalties and other relief against Westpac
for BBSW conduct
The Federal Court of Australia has ordered Westpac Banking
Corporation (Westpac) pay a pecuniary penalty of
$3.3 million. His Honour also found in his 24 May 2018 judgment
that Westpac had inadequate procedures and training and contravened
its financial services licensee obligations under s912A(1)(a), (c),
(ca) and (f) of the Corporations Act 2001 (Cth)( 09
November 2018).
More...
ASIC cancels AGM Markets licence for unconscionable
conduct and unmanaged conflicts of interest
ASIC has cancelled the Australian financial services
(AFS) licence of the retail OTC derivative issuer,
AGM Markets. An ASIC investigation found AGM's financial
services business involved core elements of unconscionability and
unmanaged conflicts of interest and followed a business model that
disregarded key conduct requirements (09 Novembe 2018).
More...
Grattan undermines retirement aspirations of
Australians
The Grattan Institute has launched an unprecedented attack
on the retirement aspirations of ordinary Australians. In a wide
ranging report they called for an increase in the retirement age to
age 70, a 15% tax on retirement savings, and regulations that would
potentially force people to sell their homes to fund retirement (07
November 2018).
More...
12% super needed to deliver a dignified retirement for
all working Australians
Moving to 12% superannuation is vital to ensure that all
working Australians achieve a dignified standard of living in
retirement, the Australian Institute of Superannuation Trustees
(AIST) has said (07 November 2018).
More...
Westpac admits it didn't take FoFA seriously
Westpac said while implementing the Future of Financial
Advice reforms, it did not embed strong enough controls and
record-keeping to police fee-for-no-service advice (07 November
2018).
More...
Government change on death benefits gets thumbs up
The Federal Government's decision to change the law to
ensure that death benefits that include life insurance proceeds are
not subject to tax when rolled over to a new superannuation fund
has been welcomed by the SMSF Association (05 November 2018).
More...
Industry must take more responsibility: APRA
The Australian Prudential Regulation Authority has
released its submission to the Hayne royal commission interim
report and has told the industry to take more responsibility. APRA
intends to strengthen the prudential standards to focus not only on
policies and frameworks, but their implementation in practice and
the outcomes achieved (01 November 2018).
More...
Government extends CIPRs deadline
The Government has also given superannuation funds more
time to offer comprehensive income products in retirement
(CIPRs) to 1 July, 2022 and has increased the
threshold superannuation balance from $50,000 to $100,000 (01
November 2018).
More...
In practice and courts
ASIC Consultation: Organisational competence
requirements for advice licensees: Update to RG 105 (CP 305)
The proposals in
Consultation Paper 305 are based on the existing draft guidance
published by the Financial Adviser Standards and Ethics Authority
(FASEA). Submissions for CP 305 are due by 6
December 2018, with an updated RG 105 setting out the new
organisational competence requirements for advice licensees
expected to be released in early 2019 (08 November 2018).
More...
AFCA: Time for licensees to update ASIC with their AFCA
membership details
AFCA members holding a financial services or credit
licence must notify ASIC of their AFCA membership details by 30
November 2018. Credit licensees must also notify ASIC of the AFCA
membership details of their authorised credit representatives who
are AFCA members. Late fees will not apply if AFCA details are
updated by 30 November. For AFCA members who were former FOS
members, you should enter a commencement date of 1 May 2018 (06
November 2018).
Update your details on the ASIC portal:
AFS licensee portal:
Here
Credit licensee portal:
Here
Credit representatives who sub-authorise other credit
representatives:
Here
APRA proposed changes to the application of the capital
adequacy framework for authorised deposit-taking institutions
(ADIs)
The key features of the proposals include: for the four
major banks – increasing Total Capital requirements by four
to five percentage points of risk-weighted assets (see the
illustrative example attached); and for other ADIs – likely
no adjustment, although a small number may be required to maintain
additional Total Capital depending on the outcome of resolution
planning. APRA proposes that the increased requirements will take
full effect from 2023 (08 November 2018).
More...
Credit and financial services targeted at Australians at
risk of financial hardship
Status: Submissions Closed: 09 November 2018.
More...
AASB Invitation to Comment
ITC 40 Financial Instruments with Characteristics of
Equity – The International Accounting Standards
Board has recently published Discussion Paper DP/2018/1 Financial
Instruments with Characteristics of Equity. Submissions to the IASB
are due by 7 January 2019.
More...
Credit and financial services targeted at Australians at
risk of financial hardship
Status: Accepting Submissions Date Referred: 17 October
2018 Submissions Closed: 09 November 2018.
More...
Royal Commission Update
The Royal Commission into Misconduct in the Banking,
Superannuation and Financial Services Industry was established by
the Government in December 2017, with the first of seven public
hearings held in March 2018, and the final round to be held in
November 2018. More...
Royal Commission into Misconduct in the Banking,
Superannuation and Financial Services Industry: interim
report
Note: This report covers policy related issues arising from the
first four rounds of hearings. Additional topics, including
superannuation and insurance, will be covered in the final report
due by 1 February 2019.
ASFA Submissions
09 November 2018 - Submission to the Productivity
Commission
ASFA response to the
Supplementary Paper – Investment performance:
Supplementary analysis
05 November 2018 - Submission to the House of Representatives
Standing Committee on Economics - Inquiry into the implications of
removing refundable franking credits.
More...
SMSF Association Submissions
12 November 2018
SMSF Association submission on the Royal Commission into misconduct
in the banking, superannuation a...
07 November 2018
SMSF Association submission regarding Design and Distribution
Obligations
02 November 2018
SMSF Association submission on exemption from the work test for
superannuation contributions
AIST Submissions
07 November 2018 Treasury Laws Amendment (Design and
Distribution Obligations and Product Intervention Powers) Bill 2018
- Areas where the regulators are hamstrung by not having
access to reports or disclosures (07 November 2018).
More...
Gazette - Superannuation Industry
(Supervision) Act 1993
15/11/2018
Notice of Disqualification - Andrew Antoniou
09/11/2018
Notice of Disqualification - Daniel Garland
08/11/2018
Notice of Disqualification - Philip B Richardson;
Jacquelyn S Richardson; Noel Smyth; Tessa Steven
07/11/2018
Notice of Disqualification - Irene Haas
06/11/2018
Notice of Disqualification - Raphael Sztrochlic; Jas
Huyhn; Terence Kwan; Saleem Shiekh; Lien Vuong; Andrew Houston
Address to the Association of Superannuation Funds of
Australia (ASFA) Conference, Adelaide
Speech, The Hon Stuart Robert MP, 14 November 2018. More...
The impact of wage theft on Queensland's workers and
economy
Edward Cavanough, Esther Rajadurai; The McKell Institute:
12 November 2018
This report aims to quantify the likely impact of wage theft on
Queensland workers and the Queensland economy, in both the form of
regular-wage theft and the non-payment of superannuation guarantee
contributions. More...
Conflicts of interest and disclosure
Royal Commission into Misconduct in the Banking,
Superannuation and Financial Services Industry - This research
paper argues that any proposed policy action to manage conflicts of
interest should ideally undergo further testing in the field in
which it will be implemented to assess the likely real-world impact
(07 November 2018). More...
A secret weapon in the fight against financial
misconduct: sectoral collective bargaining
Jim Stanford; Centre for Future Work - Consumer education,
self-regulation by banks, and even stronger enforcement efforts by
government regulators all have failed to curb incidents of
financial misconduct and unethical behaviour. This submission
provides a possible solution that has so far been overlooked -
sector-wide collective bargaining to establish uniform, ethical (05
November 2018). More...
Cases
Australian Securities and Investments Commission v Westpac
Banking Corporation (No 3) [2018] FCA
1701
CORPORATIONS – Pecuniary penalty –
declarations of contraventions – compliance program –
bank bill market – trading in prime bank bills – Bank
Bill Swap Reference rate (BBSW) – bank
accepted bill futures – interest rate swaps –
cross-currency swaps – market manipulation – artificial
price in traded BBSW referenced products – financial market
– false or misleading appearance in a market – false or
misleading appearance with respect to price for trading –
unconscionable conduct – financial instruments referencing
BBSW – non-disclosure of rate set trading practice to
counterparties – statutory unconscionability –
contraventions of the then s 12CC of Australian Securities and
Investments Commission Act 2001 (Cth) – penalty imposed
– declarations and other orders made.
On each of the dates set out in Annexure A, the Defendant
(Westpac), in trade or commerce, engaged in
conduct in connection with the possible acquisition or supply, or
acquisition or supply, of financial services , which was
unconscionable in all the circumstances
SAS Trustee Corporation v Miles
[2018] HCA 55
Superannuation and pensions – Police pension –
Disabled member of police force – Entitlement to additional
allowance – Where respondent certified by appellant as
incapable of personally exercising functions of police officer due
to specified infirmities determined by Commissioner of Police to
have been caused by being hurt on duty – Where respondent
received annual superannuation allowance as disabled member of
police force – Where s 10(1A)(b)(ii) of Police Regulation
(Superannuation) Act 1906 (NSW) provided that annual
superannuation allowance might increase by additional amount
commensurate with member's incapacity for work outside police
force – Where respondent sought additional amount by reason
of supervening infirmity increasing respondent's incapacity for
work outside police force – Where supervening infirmity
increasing respondent's incapacity for work outside police
force not subject of certification by appellant or determination by
Commissioner of Police – Whether respondent entitled to
additional amount of annual superannuation allowance.
Statutes – Interpretation – Principles – Context
– Cognate terms – Choice between textually available
constructions – Where cognate terms "incapable",
"incapacity" and "totally incapacitated"
appearing in Act – Where alternative textual constructions as
to whether infirmity increasing incapacity for work outside police
force required to be caused by being hurt on duty – Whether
cognate terms to be construed as bearing same meaning.
Police Regulation (Superannuation) Act 1906 (NSW), ss 1,
1A, 3, 4, 5, 5A, 7, 8, 10, 10B, 14, 21.
Superannuation Administration Act 1996 (NSW), s 57.
Legislation
Commonwealth
Regulations
ASIC
Corporations (Amendment) Instrument
2018/1028
12/11/2018 - This instrument amends ASIC Class Order [CO
13/763] to reinstate the exemptions previously granted to investor
directed portfolio services (IDPS) operators from
Division 8 of Part 7.8, and Part 7.9, in relation to a financial
product that is an interest in a managed investment scheme arising
out of participation in the IDPS.
ASIC
Corporations (Amendment) Instrument
2018/752
12/11/2018 - This instrument amends the ASIC Corporations
(Non-cash Payment Facilities) Instrument 2016/211 to continue the
effect of the relief by removing the provision for a three-year
cessation date in section 3.
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.