In the media
AIST welcomes recognition of the vital role of financial
counsellors
The Australian Institute of Superannuation Trustees
(AIST) welcomes release of a review of the funding
of financial counselling services, which recognises the valuable
service of the valuable service provided by financial counsellors
all around Australia (04 October 2019).
More...
ASIC warns AFS licensees to meet financial reporting
obligations on time
ASIC is reminding all Australian Financial Services
(AFS) licensees to lodge their annual financial
statements and auditor reports by the due as required under the
Corporations Act 2001 (04 October 2019).
More...
Treasury warned super fee cap can be
'gamed'
The Federal Government has been warned that some of its
changes to superannuation legislation, including the fee cap on low
balances remain open to being 'gamed' by people with high
account balances (01 October 2019).
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Finance sector to combat modern slavery
The global finance sector has launched an initiative to
eliminate modern slavery and help victims of the practice regain
their financial independence. It outlines several areas where the
finance sector can combat slavery and human trafficking, including
increasing funding for investigations into slavery and developing
better indicators of trafficking-related money laundering (30
September 2019).
More...
AUSTRAC warns fintechs, pubs to 'harden their
systems'
Financial intelligence agency AUSTRAC is warning pubs and
clubs, money remitters and fintechs offering payments services to
"harden" their technology systems to help protect against
organised crime, or risk being hit with public enforcement actions
as the agency is emboldened after the Hayne royal commission (30
September 2019).
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APRA proposes directions to integrate new accounting
standard into insurers' prudential framework
The new consultation outlines APRA's proposed
directions for integrating AASB 17 into the prudential capital and
reporting frameworks for insurers (27 September 2019).
More...
Retirement income review an opportunity to reform
Australia's compulsory savings system for the better ahead of
promised increase
Industry Super Australia (ISA) welcomes
the Federal Government's commitment to maximise efficiencies in
Australia's compulsory superannuation system, ahead of the
legislated increase in the super guarantee (27 September 2019).
More...
Members' best interests is at the heart of consumer
advocacy on superannuation
The peak representative body for the profit-to-member
superannuation sector, the Australian Institute of Superannuation
Trustees (AIST) said it anticipated working
closely with the newly-formed Choice body, Super Consumers
Australia, to ensure consumer interests were protected in
superannuation (25 September 2019).
More...
APRA fails to disqualify IOOF executives, in case full
of 'systematic weakness'
The financial regulator suffers a major defeat in the
Federal Court, failing to disqualify five executives from IOOF, in
the first case it has prosecuted this decade (20 September 2019).
More...
Regulators suffer second defeat after IOOF wins court
case
Federal Court judge Jayne Jagot has dismissed APRA's
efforts to ban former IOOF CEO Chris Kelaher and other executives
from the group. In her judgement, Ms Jagot said the prudential
regulator simply did not have enough proof that the IOOF directors
contravened the Superannuation Industry Supervision Act (SIS
Act) by failing to act in the best interests of members (20
September 2019).
More...
Super trustees reject accusations of
'misleading' communications
Superannuation trustees have rejected accusations from
consumer group CHOICE that they misled members over insurance
changes. CHOICE said trustees needed to simplify their messages and
include more relevant information, such as a premium cost relevant
to the individual, and their rights in the event of cancellation
(20 September 2019).
More...
'Get better or get out': APRA warns super
funds
APRA chairman says the prudential regulator will be having
some "difficult discussions" with superannuation trustees
that fail to produce positive outcomes for their members. The new
statutory powers accompanied by a new prudential standard on member
outcomes, will require trustees to perform an annual business
performance review to assess whether they are delivering sound,
value-for-money outcomes for the members they are serving (20
September 2019).
More...
In practice and courts
Director and officer oversight of non-financial risk
report
ASIC Corporate Governance Taskforce; ASIC: 02 October
2019
This report sets out the Taskforce's observations on director
and officer oversight of non-financial risk. The seven financial
services institutions selected for this review are those that many
Australians are exposed to, through their personal and business
banking, superannuation or insurance, or as shareholders. More...
ATO: Proposed Superannuation Guarantee amnesty
The proposed Superannuation Guarantee
(SG) Amnesty (the proposed amnesty) and
re-introduced the associated legislation into Parliament. Until the
proposed amnesty law is enacted by Parliament, ATO will continue to
apply the existing law to the SGC statements you lodge.
More...
Consultation begins on new ASIC powers
Consultation closes on 09 October 2019
The draft legislation strengthens ASIC's licensing powers by
increasing the standards required of an Australian Financial
Services Licence holder, at both the time of application and on an
ongoing basis, and extends ASIC's powers so it may ban a person
from performing functions in a financial services or credit
business. For more information, click here.
Reminder: AFCA naming and shaming from
October
The Australian Financial Complaints Authority
(AFCA) has confirmed a starting date for it to
name firms in its determinations, with the watchdog to start
exposing perpetrators from 1 October. The rules which were approved
by ASIC in August will allow AFCA to publish the names of financial
firms in all determinations.
More...
ASIC consultation: foreign financial services providers
relief proposals
ASIC has extended to 31 March 2020 licensing relief for
foreign financial services providers (FFSPs) to
allow them to provide certain financial services to Australian
wholesale clients without needing to hold an Australian financial
services licence.
More...
ASFA Submissions
30 September 2019 - Submission to The Treasury -
Miscellaneous amendments to Treasury portfolio laws 2019
(Superannuation).
More...
FSC Submissions
04 October 2019 -
FSC Submission - Treasury portfolio technical amendments
(Superannuation)
Gazette - Superannuation Industry (Supervision) Act 1993
04/10/2019
Notice of Disqualification - Luke Saunders
01/10/2019
Notice of Disqualification – Chhay So
30/09/2019
Notice of Disqualification - Robert Dicks Kolofale
27/09/2019
Notice of Disqualification - Paul Juby; Kseniya Juby
Cases
Australian Prudential Regulation Authority v
Kelaher [2019] FCA
1521
SUPERANNUATION – whether two entities and their
directors contravened s 52 and s 52A of the Superannuation
Industry (Supervision) Act 1993 (Cth) (SIS Act) –
trustee's duties – duties of trustee directors –
alleged contraventions of statutory covenants – care, skill
and diligence – best interests of the beneficiaries –
conflicts of interest – whether the governing rules of the
trusts exclude liability for the alleged contraventions –
prudent person and prudent superannuation trustee standards of care
– inadequate proof of contraventions – application
dismissed.
Aslami v Board of Trustees of the State Public Sector
Superannuation Scheme as Trustee for the QSuper Fund
[2019] FCA 1560
SUPERANNUATION – appeal from a judgment of the
Superannuation Complaints Tribunal (Tribunal) to affirm a decision
of the Board of Trustees of the State Public Sector Superannuation
Scheme for the QSuper Superannuation Fund to decline the
appellant's claim for a total and permanent disablement benefit
– construction of the phrase "education, training or
experience" – whether the Tribunal adopted the correct
approach – whether the Tribunal applied the correct test
– appeal dismissed
Administrative Appeals Tribunal Act 1975 (Cth);
Superannuation (Resolution of Complaints) Act 1993
(Cth)
Legislation
Commonwealth
High
Court of Australia Regulations 2019
25/09/2019 - These regulations repeal the High Court of
Australia Regulations 2000 which sunset on 1 October 2019 and
remake them with an increase in the prescribed amount from
$1,000,000 to $2,000,000. The effect of this change will be that
Ministerial approval is required before the High Court may enter
into a contract for any amount above $2,000,000.
Superannuation
Amendment (PSS Trust Deed) Instrument
2019
25/09/2019 - The instrument amends the Public Sector
Superannuation Trust Deed and Rules to standardise and modernise
provisions relating to eligibility for reversionary superannuation
benefits payable to or in respect of children.
Bills
Treasury Laws Amendment (Putting Members' Interests
First) Act 2019
Assent Act no: 79 Year: 2019 02 October 2019 -
The Act will require insurance in superannuation
for new members under 25 and members with low balance accounts to
only be offered on an opt-in basis from 1 April 2020, and
amendments to the Superannuation (Unclaimed Money and Lost
Members) Act 1999
Acts
Treasury
Laws Amendment (2018 Superannuation Measures No. 1) Act
2019
03/10/2019 - Act No. 78 of 2019
Queensland
Subordinate legislation as made
No 193
Superannuation (State Public Sector) Amendment Notice (No. 1)
2019
23 September 2019
No 194
Public Trustee (Interest Rate) Amendment Regulation 2019
27 September 2019
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.