In the media
Govt pressured to exclude SMSFs from DDO regime
Self-Managed Superannuation Funds should be exempted from
the Government's new design and distribution regime (09 January
2020).
More...
Call to phase out limited licensing and set up new
advice system
The SMSF Association wants limited licensing phased out
and a new advice framework established to better meet the needs of
self-managed super fund (SMSF) trustees. The
Association also used its submission to propose a spousal rollover,
increased contribution flexibility and simplify superannuation
complexity around thresholds, residency rules, death benefits and
legacy pensions (09 January 2020).
More...
ASIC bans Northern NSW adviser for four years
ASIC has banned Northern NSW-based financial adviser David
O'Brien from providing financial services for four years
following an ASIC surveillance (08 January 2020).
More...
ASIC further suspends the AFS licence of Halifax
Investment Services
ASIC has extended the suspension of the Australian
financial services (AFS) licence held by Halifax
Investment Services Pty Ltd (Halifax) until 8
January 2021, effective 18 December 2019 (07 January 2020).
More...
ASIC bans Perth SMSF adviser
ASIC has banned Perth-based adviser Wayne Blazejczyk from
providing financial services for five years for failure to meet
best interests obligations when providing advice on self-managed
super funds (SMSFs) (06 January 2020).
More...
Government releases draft legislation on APRA-ASIC
cooperation
The Morrison government has released for consultation
draft legislation that will oblige ASIC and APRA to co-operate with
one another, following a royal commission recommendation (06
January 2020).
More...
There is one word that financial planners are dreading
as 2020 is ushered in Analysis
A new regime of regulation is set to hit the scandal-prone
financial planning industry, and one little word in the new rule
book could have very significant implications (31 December 2019).
More...
AFCA's statement regarding the release of
Compensation Scheme of Last Resort discussion paper
Following the release of the public discussion paper on
establishing a Compensation Scheme of Last Resort, AFCA reconfirms
its strong support for creating an industry-funded scheme of last
resort (30 December 2019).
More...
FASEA releases preliminary response to submissions on
the Code of Ethical Guidance
FASEA issues a Preliminary Response to Submissions –
FG002 Financial Planners and Advisers Code of Ethics 2019 Guidance
to provide clarification on the interpretation and application of
the Code relating to a number of matters raised by stakeholders
during the consultation (20 December 2019). More...
APRA releases second consultation package on its
Superannuation Data Transformation
The APRA has released a second consultation package on its
Superannuation Data Transformation. This release follows the launch
in early November of APRA's multi-year project to upgrade the
breadth, depth and quality of its superannuation data collection
(19 December 2019).
More...
FPA launches Future of the SOA digital interactive
guide
The Financial Planning Association of Australia
(FPA) launched the Future of the Statement of
Advice (SOA) digital interactive guide to help
financial planners develop more accessible, personalised and
meaningful client experiences during the advice process (18
December 2019).
More...
ATO's super news for lost super
The Australian Taxation Office (ATO) is
to be given the responsibility to distribute superannuation funds
from inactive accounts under new laws to be passed next year
(2020). The move was among recommendations made by
the Productivity Commission in its Superannuation: Assessing
Efficiency and Competitiveness report (16 December 2019).
More...
Doing more to reunite Australians with their lost and
forgotten super
The Morrison Government will build on its record of
protecting and reuniting Australians with their lost and forgotten
super with legislation to facilitate the exit of eligible rollover
funds (ERFs) (13 December 2019).
More...
In practice and courts
Banking, Superannuation & Financial Services Royal
Commission - Recommendation 7.1: establishment of a compensation
scheme of last resort
The Coalition Government has released a discussion paper
on establishing a Compensation Scheme of Last Resort. In its
response, 'Restoring trust in Australia's financial
system', the Government agreed to take action on recommendation
7.1 and establish an industry-funded, forward-looking compensation
scheme of last resort. The consultation closes on 7 February2020.
More...
ATO: Opt out of super guarantee
From 1 January 2020, some workers with multiple employers
can
apply to opt out of receiving the super guarantee
(SG) from some of their employers.The exemption
certificate means the employer will not be liable for the super
guarantee charge if they don't make SG contributions on your
behalf for the quarters covered by the certificate.
ASIC REP-650 Overview of licensing and professional
registration applications: July 2018 to June 2019
This report is for AFS licensees, Australian credit
licensees, lawyers, application service providers and professionals
working in financial services that are interested in the licensing
and professional registration functions of ASIC. This report also
outlines key regulatory issues and activities related to licensing
and professional registration (16 December 2019).
More...
ASIC REP 646 Insurance in superannuation 2019–20:
Industry implementation of the Voluntary Code of Practice
This report provides background to our work in insurance
in superannuation. It also examines industry progress on the
implementation of the Insurance in Superannuation Voluntary Code of
Practice (13 December 2019).
More...
APRA Annual MySuper statistics
The Annual MySuper Statistics report contains detailed
profile and structure, financial performance, fees and membership
information for all MySuper products. Copies of the Annual MySuper
statistics are available on the APRA website here
(16 December 2019.
APRA second consultation package on Superannuation Data
Transformation
The two topic papers released form part of Phase 1 of the
Superannuation Data Transformation (Breadth), which will address
the most urgent gaps in APRA's data collection, particularly
for choice products and investment options: Topic Paper 2:
Performance and Topic Paper 3: Member Accounts. Submissions on
these proposals will close on 14 February 2020 (19 December 2019).
More...
FPA Evolution of Advice discussion paper
Consultation now open on developing FPA's proposed
policy platform for financial planning The Financial Planning
Association of Australia (FPA) has released a new
discussion paper titled Evolution of Advice: The Financial Planning
Profession from 2020 to 2025, and opened consultation on its
proposed new policy platform. FPA members will be asked to
contribute their views over the next four weeks (27 November 2019).
More...
APRA finalises revised guidance on superannuation
Business Performance Review
SPG 516 provides guidance to the superannuation
industry on undertaking APRA's new requirements for an annual
Business Performance Review under Prudential Standard SPS 515
Strategic Planning and Member Outcomes (SPS 515),
and also the new legislated member outcomes assessment. SPG
516 is the final piece of guidance to support SPS 515
commenced on 1 January 2020.
More...
APRA consultation:proposed revisions to Prudential
Standard SPS 250 Insurance in Superannuation (SPS 250)
The proposed changes are aimed at improving superannuation
member outcomes by helping trustees select the most appropriate
policies for their members, and monitor their ongoing relationships
with insurers.
More...
IFRS: Interest-rate benchmarks amendments
Amendments issued a focus on the accounting effects of
uncertainty in the period leading up to the reform. The amendments
come into effect from 1 January 2020 but companies may choose to
apply them earlier.
Interest Rate Benchmark Reform, which amends IFRS 9,
IAS 39 and IFRS 7, can be accessed here (subscription required).
A project summary, providing further information about the
Board's work in relation to IBOR reform, is also available.
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...
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, ATOwill continue to
apply the existing law to the SGC statements you lodge.
More...
IFRS Standards in 2020: consultations
The first major consultation document, already out for
comment, proposes improving the way information is communicated in
the financial statements, with a focus on financial performance.
Exposure Draft General Presentation and Disclosures, which the
Board published in December 2019 as part of its Primary Financial
Statements project, is open for comment until 30 June 2020 (07
January 2020).
Gazette - Superannuation Industry (Supervision) Act
1993
10/01/2020
Notice of Disqualification - Laura Lucy Ballantine;
Bradley James Ballantine; Daryll King; Kevin Cream; Anna Cream
09/01/2020
Notice of Disqualification – Angela Pettit
07/01/2020
Notice of Disqualification - Kenneth Glynn
24/12/2019
Notice of Disqualification – Kenechukwu Ofor
Cases
Australian Securities and Investments Commission v Dover
Financial Advisers Pty Ltd (No 2) [2019] FCA
2151
CORPORATIONS – false, misleading or deceptive
conduct – contraventions of s 1041H(1) of the Corporations
Act 2001 (Cth) (Corporations Act) and ss 12DA(1)
and 12DB(1)(i) of the Australian Securities and Investments
Commission Act 2001 (Cth) (ASIC Act) –
consideration of the appropriate form of declarations –
consideration of exercise of power of the Court to declare that an
individual is involved in a contravention by another person where
involvement is not itself a contravention
THE COURT DECLARES THAT– Between around 25 September 2015 and
around 30 March 2018 (the relevant period), and on each occasion
that its authorised representatives provided clients a "Client
Protection Policy" in conjunction with, or incorporated into,
statements of advice, the first defendant
(Dover):(a) engaged in conduct, in trade or
commerce, in connection with the supply of financial services ,
that was misleading or deceptive or likely to mislead or deceive in
contravention of s 1041H(1) of the Corporations Act 2001 (Cth) and
s 12DA(1) of the Australian Securities and Investments Commission
Act 2001 (Cth) (ASIC Act)
Australian Securities and Investments Commission v
Westpac Banking Corporation [2019] FCA
2147
JUDGMENT SUMMARY– This case concerns the
liability of Westpac Banking Corporation for the failure by one of
its representatives to comply with the "best interests
obligations" in Div 2 of Pt 7.7A of the Corporations Act 2001
(Cth) when he provided personal advice concerning financial
products to certain retail clients. As a result of the advice and
recommendations given by Mr Sinha, each of the couples altered
their existing superannuationor insurance arrangements and acquired
interests in or took out superannuationor insurance products or
policies with companies or entities associated with Westpac
Whitt v Clough Projects [2019]
FCCA 3457
INDUSTRIAL LAW – Interpretation of a Greenfields
Agreement – Clough Projects Pty Ltd Onshore and Offshore
Greenfields Agreement 2014 – whether the applicant was
entitled to superannuation payments above the 'maximum
contribution base' per section 19(3) of theSuperannuation
Guarantee (Administration) Act 1992(Cth) (SGAA)
– whether the obligation to paysuperannuationcontributions
'in accordance with' the SGAA incorporated the 'maximum
contribution base' per section 19(3) of the SGAA.
Commissioner of Taxation v Racing Queensland
Board [2019] FCAFC
224
SUPERANNUATION– whether principal racing authority
liable to paysuperannuation guarantee charges – construction
of s 12 ofSuperannuation Guarantee (Administration) Act 1992(Cth)
– whether principal racing authority is "employer"
of jockeys – whether principal racing authority liable to pay
riding fees to jockeys – where principal racing authority
stated that it would pay jockeys – where principal racing
authority in fact paid jockeys – where principal racing
authority prepared recipient created tax invoices reflecting
liability to pay – whether payments made "on behalf
of" another person – where amounts paid not reimbursed
by another person
APPEAL AND NEW TRIAL – whether appellable error in approach
to evidence adduced on appeal from objection decision – where
evidence of past events not adduced from contemporaneous witnesses
– relevance of evidence relating to arrangements prior to the
relevant period. Superannuation Guarantee (Administration) Act
1992(Cth) ss 11, 12, 16, 17 and 19Superannuation Guarantee Charge
Act 1992 (Cth) ss 5 and 6
Commissioner of Taxation v Scone Race Club
Limited [2019] FCAFC 225
SUPERANNUATION– whether respondent race club was
liable to pay asuperannuationguarantee charge in respect of riding
fees paid to jockeys during the relevant period – whether
jockeys engaged to ride in races or barrier trials were employees
of the respondent race club within the extended definition in s
12(8)(a) of theSuperannuation Guarantee (Administration) Act
1992(Cth) – whether the primary judge erred in holding that
the respondent race club discharged its burden to show it was not
"liable" to pay riding fees to jockeys engaged by owners
or trainers – appeal allowed
TAXATION – appeal from objection decision in the Court's
original jurisdiction under s 14ZZ of the Tax Administration Act
1953 (Cth) – whether the primary judge impermissibly reversed
the onus of proof under s 14ZZO(b)(i)
Commissioner of Taxation v The Trustee for the Michael
Hayes Family Trust [2019] FCAFC
226
TRUSTS – construction of trust deed –
relevance of surrounding circumstances – ambiguity –
mistake – where trust deed identified a named company
"as trustee for" a specified superannuation fund as the
"Second Absolute Beneficiary" of the trust – where
the named company had in fact ceased to be the trustee of
thesuperannuationfund – where a deed of rectification
purported to rectify the trust deed as and from the establishment
of the trust – whether the reference to the named company is
a case of ambiguity or mistake – whether construction of the
trust deed is to be undertaken having regard to evidence of
surrounding circumstances Superannuation Industry (Supervision) Act
1993 (Cth) s 45
Legislation
Commonwealth
Regulation
Treasury
Laws Amendment (Miscellaneous Amendments) Regulations 2019
17/12/2019 - These regulations make minor and
technical amendments to multiple regulations in the Treasury
portfolio, including superannuation laws - Schedule
5—Superannuation
Part 4—Life expectancy period - Superannuation Industry
(Supervision) Regulations 1994
Part 5—Application - Income Tax Assessment Regulations 1997;
Superannuation Industry (Supervision) Regulations 1994
Superannuation
(Unclaimed Money and Lost Members) and Other Laws (Repeal and
Consequential Amendments) Regulations 2019
16/12/2019 - These regulations repeal the
Superannuation (Unclaimed Money and Lost Members) Regulations 1999
and make minor consequential amendments related to the repeal of
these regulations.
Superannuation
(Unclaimed Money and Lost Members) Regulations
2019
16/12/2019 - These regulations remake and improve the
operation of the Superannuation (Unclaimed Money and Lost Members)
Regulations 1999 before they sunset.
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.