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Inside track: Superannuation, Funds Management & Financial Services

13 July 2021

#Superannuation, Funds Management & Financial Services

Inside track: Superannuation, Funds Management & Financial Services

In the media

Outcome of consultation on deferred sales model for add on insurance products
TREASURY – 08 July 2021 – the Morrison Government will provide consumers and industry with greater certainty in relation to the insurance products that will be covered by the deferred sales model and anti-hawking regime. The Government will exempt from the deferred sales model the following classes of insurance products: Insurance sold within superannuation (including group life insurance).  More...

Super members trust funds to help make life insurance decisions
MEDIA – 06 July 2021 – superannuation funds need to ensure they are engaging with members on insurance in super especially after Your Future, Your Super stapling measures may lead to inappropriate cover.  More...

Temporary delay to SMSF member increase
MEDIA – 06 July 2021 – advisers have been advised to refrain from making changes to increase the number of members in self-managed super funds due to an implementation delay by the Australian Taxation Office, despite the changes coming into effect on 1 July, 2021.  More...

AFCA receives 70,000 financial complaints in 2020-21
AFCA – 05 July 2021 – Australians in dispute with banks, insurers, super funds, investment firms and financial advisers lodged more than 70,000 complaints with the Australian Financial Complaints Authority (AFCA) in the past 12 months.  More...

Westpac to remediate $87m to advice customers
The big four bank will remediate customers of its financial advice business for failure to notify them of corporate actions between 2005 to 2019 (02 July 2021).  More...

ASIC releases adviser feedback on affordable advice
MEDIA – 02 July 2021 – the corporate regulator’s consultation found that limited advice is too costly to provide and there is a lack of demand for digital advice.  More...

IGR predicts superannuation to do the heavy lifting in the face of burgeoning health and aged care costs
ASFA – 28 June 2021 – the Government’s Intergenerational Report (IGR) published, highlights the increasingly important role of Australia’s superannuation system in supporting the living standards of future generations of retirees.  More...

In practice and courts

Consultations
Financial Sector Reform (Hayne Royal Commission Response–Better Advice) Bill 2021 [Provisions]
Status: Accepting Submissions – date Referred: 24 June 2021; Submissions Close: 09 July 2021
Reporting Date: 28 July 2021.

ASIC: Industry response to consultation on promoting consumer access to affordable advice
1 July 2021 – ASIC released an infographic summary of the response to Consultation Paper 332 Promoting access to affordable advice for consumers (CP 332). The infographic sets out the key issues raised by respondents in their submissions to CP 332.
The response to CP 332 was unprecedented, with ASIC receiving 466 submissions from financial advisers, licensees, industry associations and relevant stakeholders.  More...

ASIC Corporations (Amendment) Instrument 2021/381
Amends the ASIC Corporations (Auditor Independence) Instrument 2021/75 and ASIC Corporations (Parent Entity Financial Statements) Instrument 2021/195 to change the repeal dates from April 2026 to April 2024.

ASIC Corporations (COVID-19 – advice-related relief) Instrument 2021/268
Extends until 15 October 2021 the relief measure that allows financial advisers to provide a record of advice rather than a statement of advice to existing clients requiring financial advice due to the impact of the COVID-19 pandemic: See 21-072MR and FAQs.

ASIC Consultations: CP 340 Breach reporting and related obligations
This consultation paper set out our proposals for providing guidance to Australian financial services licensees and Australian credit licensees (credit licensees) on the breach reporting obligation that applies from 1 October 2021. The obligations require these licensees to notify, investigate and remediate breaches of the law in certain circumstances.  More...

ASIC Corporations, Superannuation and Credit (Amendment) Instrument 2020/99
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.

APRA consultation on guidance in support of prudential standard on remuneration
The draft Prudential Practice Guide CPG 511 Remuneration sets out principles and examples of better practice to assist banks, insurers and superannuation licensees comply with prudential standard CPS 511 Remuneration, which will be finalised later this year. The closing date for submissions on the draft CPG 511 is 23 July 2021.
Copies of the draft CPG 511 and a consultation letter here.

APRA additional FAQs on the Superannuation Data Transformation Phase 1 reporting standards
2 July 2021 – The APRA has published additional frequently asked questions (FAQs) for registrable superannuation entity licensees to provide further guidance on meeting the Reporting Standards for Phase 1 of the Superannuation Data Transformation. The FAQs are available on the APRA website here.

Reminder: Exposure draft regulations underpinning Treasury Laws Amendment (Your Future, Your Super) Bill 2021
Under the Your Future, Your Super reforms, the Morrison Government is taking the next step in modernising and improving the superannuation system. The Your Future, Your Super package is scheduled to commence on 1 July 2021. Further information is available at the Treasury website.  More...

Legislation

Commonwealth

Acts

Treasury Laws Amendment (2021 Measures No. 4) Act 2021
05/07/2021 – Act No. 72 of 2021.

Bills

Financial Regulator Assessment Authority (Consequential Amendments and Transitional Provisions) Bill 2021
Assent Act no: 64 Year: 2021 29 June 2021 – introduced with the Financial Regulator Assessment Authority Bill 2021, the bill amends five Acts to make amendments consequential on the establishment of the Financial Regulator Assessment Authority.

Financial Regulator Assessment Authority Bill 2021
Assent Act no: 63 Year: 2021 29 June 2021 – Senate 2nd reading 15/06/2021 – introduced with the Financial Regulator Assessment Authority (Consequential Amendments and Transitional Provisions) Bill 2021, the bill: Establishes the Financial Regulatory Assessment Authority to assess and report on the effectiveness and capability of the Australian Prudential Regulation Authority and the Australian Securities and Investments Commission; and prohibits the unauthorised use or disclosure of protected information provided to the Authority.

Treasury Laws Amendment (2021 Measures No. 4) Bill 2021
Assent Act no: 72 Year: 2021 30 June 2021 – amendments to product intervention regime – to provide that ASIC is not prohibited from making a product intervention order that has conditions relating to fees, charges or other consideration paid or payable as remuneration by a retail client or consumer to a person, including the provider (or their associates) of a financial product or a credit product.

Regulations

Australian Prudential Regulation Authority Supervisory Levies Determination 2021
29/06/2021 – the determination ensures the recovery of APRA’s costs, and the costs incurred in connection with supporting the integrity and efficiency of markets and promoting the interests of consumers in the financial system, from industries that are prudentially regulated by APRA.

Disclaimer
The information in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, we do not guarantee that the information in this newsletter is accurate at the date it is received or that it will continue to be accurate in the future.

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