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Inside track: Superannuation, Funds Management & Financial Services

15 June 2021

#Superannuation, Funds Management & Financial Services

Inside track: Superannuation, Funds Management & Financial Services

In the media

FFSPs relief extended until 2023
MEDIA – 11 June 2021 – foreign financial services providers will continue to have relief from holding an Australian financial service licence as the deadline has been extended to 31 March, 2023.  More...

Advisers surprised by breaches reported to ASIC
MEDIA – 10 June 2021 – the FPA is arguing for professional associations to be embedded in the breach reporting regime under a co-regulatory approach. An increasing number of financial advisers who are getting their own Australian financial services licence or moving to smaller boutiques have found themselves to be the subject of a breach notification without prior knowledge.  More...

Disclosure changes open door for ‘reckless behaviour’
MEDIA – 10 June 2021 – changes to disclosure measures under the Treasury Laws Amendment (2021 Measures No.1) Bill could be a “green light for more reckless behaviour”, according to the Australian Council of Superannuation Investors.  More...

Pathway for advisers to avoid being classified as 'new entrant'
MEDIA – 09 June 2021 – if existing advisers are classed as “ceased” by the end of 2021 and have not passed the FASEA exam they will not be classified as a ‘new entrant’ in 2022 if they want return to practice but an industry association warns there is still uncertainty.  More...

Your Future Your Super legislation passes the House with direct member harm unaddressed
AIST – 04 June 2021 – the AIST says Australians are now relying on members of the Senate to protect their super savings against flawed measures in the Your Future Your Super Legislation. AIST remains deeply concerned that vulnerable Australians will be stapled to underperforming and untested super products if the legislation gets the green light.  More...

New financial crime guide warns the finance sector and Australians about ‘cuckoo smurfing’
AUSTRAC – 03 June 2021 – a new financial crime guide warns businesses and their customers about the dangers of a money laundering method known as ‘cuckoo smurfing’. It generally relies on exploiting the legitimate bank accounts of individuals and businesses here in Australia (03 June 2021).  More...

Long-awaited reforms will stop abusive partners hiding super assets in family law cases
AIST – 01 June 2021 – long-awaited reforms will stop abusive partners hiding super assets in family law cases. The Australian Institute of Superannuation Trustees and Women’s Legal Service Victoria warmly welcome the Government’s release of draft legislation that will make it much easier to identify superannuation assets in family law proceedings.  More...

Director of derivatives issuer cops double ban
ASIC has banned the former director of an over-the-counter derivatives issuer from financial services and from managing corporations as a result of his “serious” lack of regard for compliance. In a statement, the regulator said it had banned John Martin from providing financial services for 10 years and from managing corporations for five years (01 June 2021).  More...

AFCA publishes details of non-compliant members
The Australian Financial Complaints Authority has published the details of five financial firms who have failed to pay their AFCA membership levy and/or other fees. These financial firms and authorised credit representatives have been expelled from membership of AFCA (31 May 2021).  More...

In practice and courts

ATO Advice

Treasury Consultations – reducing red tape for superannuation funds – ECPI measures
The draft legislation provides choice for superannuation fund trustees to use their preferred method of calculating ECPI where the fund is fully in the retirement phase for part of the income year but not for the entire income year.
The draft legislation will also remove a redundant requirement for superannuation funds to obtain an actuarial certificate when calculating ECPI. The exposure draft legislation and supporting materials are available on the Treasury website. View the submission guidelines for further information. Consultation will close on 18 June 2021.

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 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.

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...

APRA Connect
APRA Connect is the new data collection solution for reporting entities to lodge entity information and data with APRA. Entities will be required to use both D2A and APRA Connect. The first data collections to be introduced in APRA Connect at the September 2021 go live will be the Superannuation Data Transformation collections (04 June 2021).  More...

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 are available on APRA’s website at Consultation on remuneration requirements for all APRA-regulated entities.

APRA draft Prudential Practice Guide CPG 229 Climate Change Financial Risks (CPG 229)
The guide is designed to assist APRA-regulated entities in managing climate-related risks and opportunities as part of their existing risk management and governance frameworks. APRA is seeking stakeholder feedback on the draft CPG 229 by 31 July 2021. The draft CPG 229 and supporting resource links are available on the APRA website at Consultation on draft Prudential Practice Guide on Climate Change Financial Risks.

Cases

Meredith v Commonwealth of Australia (No 2) [2013] ACTSC 221
TORTS – negligence – negligent misstatement – pure economic loss – negligent misstatement proven
SUPERANNUATION – Public service funds – availability of public service superannuation funds to ‘temporary’ Commonwealth employees under the Superannuation Act 1976 (Cth)
TAXES AND DUTIES – tax on a judgment sum – whether tax liability will be assessed on a judgment sum – leave granted to apply for award of additional damages if liability assessed.

Legislation

Commonwealth

ASIC Corporations (Amendment) Instrument 2021/510
11/06/2021 – this instrument amends the ASIC Corporations (Repeal and Transitional) Instrument 2016/396, the ASIC Corporations (Foreign Financial Services Providers – Limited Connection) Instrument 2017/182 and the ASIC Corporations (CSSF-Regulated Financial Services Providers) Instrument 2016/1109 to preserve the effect of relief. It also amends the ASIC Corporations (Foreign Financial Services Providers–Funds Management Financial Services) Instrument 2020/199 to delay commencement. 

Superannuation (PSS) Productivity Contribution (2021-2022) Determination 2021
10/06/2021 – this determination sets new productivity contribution rates for the Public Sector Superannuation (PSS) scheme to apply for the financial year beginning on 1 July 2021.

Superannuation (PSS) Maximum Benefits (2021-2022) Determination 2021
09/06/2021 – this determination sets new maximum benefits for the Public Sector Superannuation scheme to apply for the financial year beginning on 1 July 2021.

Superannuation (CSS) Productivity Contribution (2021-2022) Declaration 2021
09/06/2021 – this declaration sets new rates of productivity contributions for the Commonwealth Superannuation Scheme to apply for the financial year beginning on 1 July 2021.

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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