In the media
ASIC succeeds in obtaining orders against Debt
Wipeout
ASIC has obtained interim orders and injunctions from the
Federal Court of Australia against Mr David Murphy, Mr Anastasios
Mavroulis, Mrs Kewa Ruwhiu and Mr Mathew Ruwhiu (the defendants)
and Debts Knockout Pty Ltd (Debts Knockout) in relation to
unlicensed financial services (15 October 2020). More...
ASIC suspends the AFS licence of Ballast Financial
Management Pty Ltd
ASIC has suspended the Australian financial services (AFS)
licence of Perth-based financial advice provider Ballast Financial
Management Pty Ltd Ballast ceased carrying on a financial services
business when it was unable to obtain professional indemnity
insurance to comply with its obligation to have adequate
compensation arrangements (14 October 2020). More...
Super boards need to lift governance
APRA deputy chair, Helen Rowell, said boards needed to
lift their governance practices and "break the nexus with the
past where needed". While this was not reflective of the
industry at large, Rowell said the challenges were not unique to
only smaller funds or underperformers (13 October 2020). More...
APRA flags Budget-driven changes to heatmaps
The APRA has signalled possible changes to its
superannuation heatmaps regime to reflect the Government's
Budget changes to superannuation fund performance (13 October
2020). More...
Australian funds last on disclosure: Morningstar
Australia has the world's worst practice in portfolio
holdings disclosure, according to Morningstar, with an analyst
calling the lack of transparency an "indictment" of the
local investment industry (09 October 2020). More...
No third tranche of early release
There will not be a third tranche of the early release of
superannuation scheme, the Assistant Minister for Superannuation,
Financial Services and Financial Technology, Jane Hume has
confirmed (8 October 2020). More...
Super performance test for consumers
The superannuation performance test will allow consumers
to compare "apples with apples" and will not necessarily
take into account the benchmark funds had set for themselves,
according to Assistant Minister for Superannuation, Financial
Services (08 October 2020). More...
Sort out super performance before stapling says
AIST
Australia's financial services regulators need to deal
with superannuation fund underperformance before members find
themselves stapled to particular funds, according to industry funds
body, the Australian Institute of Superannuation Trustees (AIST)(08
October 2020). More...
Members 'unlikely' to remain in
poorly-performing super funds: Grattan
While there is a possible danger of members remaining in
poorly-performing super funds, this is the better option than them
accumulating multiple accounts and paying multiple fees (08 October
2020). More...
Superannuation funds to face competitive test
MEDIA – 08 October 2020 - Superannuation funds will
have to pass an objective performance test to be able to take on
new members under new Superannuation funds to face competitive test
(08 October 2020). More...
APRA begins roll-out of new Supervision Risk and
Intensity Model
The Australian Prudential Regulation Authority (APRA) has
announced that it is commencing the roll-out of a new model for
assessing the risks faced by banks, insurers and superannuation
licensees. APRA will use the SRI Model to assess the systemic
significance of APRA-regulated entities, and the level of risk each
entity faces (06 October 2020). More...
Significant superannuation changes lack detail
The ASFA said the measures announced in the 2020 Federal
Budget represent a significant change to the architecture of
Australia's superannuation system. ASFA supports measures to
lift standards for MySuper in order to improve retirement outcomes
for superannuants, and how these changes are made needs to be
carefully considered (06 October 2020). More...
In practice and courts
APRA letter to RSE licensees on controlling stake
obligations and updated application kit
APRA advises licensees to review their current ownership
structures in regard to the requirements that have been in place
since July 2019. An updated application form and instruction guide
to own or control an registrable superannuation entity (RSE)
licensee is now available. The letter is available on the APRA
website at: Know your obligations approval to own or
control an RSE licensee. The application form and instruction
guide is available on the APRA website at: Apply to own or control an RSE licensee.
(15 October 2020)
APRA weekly data on the superannuation early release
scheme
The APRA has published the latest industry-level and
fund-level data on the temporary early release of superannuation
scheme. The Early Release Initiative statistics
for applications received between 20 April - 4 October 2020 are
available on the APRA website here (12 October 2020).
APRA reminder: superannuation licensees on upcoming
legislative obligations
Registrable superannuation entity (RSE) licensees are
reminded of two key regulatory requirements - to undertake a
Business Performance Review by 31 December 2020, and an outcomes
assessment by 28 February 2021. View the letter here.
AFCA Current Matters
Union Standard International Group Pty
Ltd (Updated October 2020 )
Bendigo and Adelaide Bank Great Southern
loans (Updated October 2020 )
ASIC Corporations, Superannuation and Credit (Amendment)
Instrument
Amends the ASIC Corporations and Credit (Internal Dispute
Resolution— Transitional) Instrument 2019/965 to preserve ASIC's existing
internal dispute resolution policy in relation to complaints
received by financial firms before 5 October 2021. More...
Austrac reminder: Rule extended to support COVID-19
early release of superannuation initiative
AUSTRAC has extended the Rule for streamlined customer
verification under the COVID-19 early release of superannuation
initiative until 31 December 2020. More...
Consultation: AFCA Rules changes ahead of Superannuation
Complaints Tribunal ceasing operations
As part of transition arrangements in relation to the
Superannuation Complaints Tribunal (SCT) ceasing operations after
31 December 2020, the Australian AFCA is seeking submissions on
proposed changes to its Rules. Submissions have closed on 16
October 2020. The consultation paper, draft amendments to the Rules
and draft amendments to the Operational Guidelines are available on
the AFCA website here.
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.