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Inside track: Superannuation, Funds Management & Financial Services

17 November 2020

#Superannuation, Funds Management & Financial Services

Inside track: Superannuation, Funds Management & Financial Services

In the media

Legislation to implement further recommendations of the Banking, Superannuation & Financial Services Royal Commission
Consumers and small businesses will be further protected under a package of legislation introduced into the Parliament by the Morrison Government. The package of legislation addresses 20 recommendations and one additional commitment from the Hayne Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry (12 November 2020).  More...

ASIC to investigate super fund 'insider trading'
ASIC has said it will investigate controversial switching behaviour by a number of super trustees and executives and revealed more details around its planned year-end litigation blitz (12 November 2020).  More...

Super benchmarks are counterproductive: IFM, Mercer
The government’s proposed benchmarking for the superannuation sector could have the opposite of the intended effect on investment performance, major industry players have warned (11 November 2020).  More...

Licensing and professional registration activities: 2020 update
Between July 2019 and June 2020, ASIC received 1,500 licensing and professional registration applications (a slight decrease from 1,504 the previous year) (11 November 2020).  More...

ASFA: 75 per cent of Australians support increasing the Super Guarantee to 12 per cent
The Association of Superannuation Funds of Australia (ASFA) has released the results of a nationwide survey which finds that an overwhelming majority of Australians support the current compulsory superannuation system and want to see the Superannuation Guarantee increased (09 November 2020).  More...

AFCA releases 2019-20 Annual Review
The Australian Financial Complaints Authority (AFCA) has released its 2019-20 Annual Review, revealing the number of complaints received and closed, the amount awarded to consumers in compensation and refunds, and the ombudsman’s approach to the COVID-19 pandemic (06 November 2020).  More...

AFCA proposes Rules change to transfer unfinished complaints from Superannuation Complaints Tribunal
Following a public consultation and submissions from industry and consumer bodies, an amendment to the AFCA Rules to facilitate the transition of any unresolved complaints from the SCT prior to ceasing operations will be submitted to the Australian Securities and Investments Commission (ASIC) for approval (04 November 2020).  More...

In practice and courts

ASIC REP 671 Licensing and professional registration activities: 2020 update
The report outlines key issues, new and proposed changes to licensing processes, and other work we have undertaken that affects licensees. It also provides information and data on licensing and registration applications from the 2019-20 financial year (11 November 2020). Download the report here.

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 and 1 November 2020 are available on the APRA website at: COVID-19 Early Release Scheme (09 November 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 2019-20 Annual Review
The Australian Financial Complaints Authority (AFCA) has released its 2019-20 Annual Review, revealing the number of complaints received and closed, the amount awarded to consumers in compensation and refunds, and the ombudsman’s approach to the COVID-19 pandemic (06 November 2020).  More...

AFCA: Six-month temporary time extension to cease on 1 November
The Australian Financial Complaints Authority (AFCA) is reminding firms that on 1 November 2020, the six-month temporary time extension for firms to provide responses to financial difficulty complaints and complaints that have already been through internal dispute resolution will come to an end (16 October 2020).  More...

AFCA current matters
Union Standard International Group Pty Ltd
Bendigo and Adelaide Bank Great Southern loans

ASFA research and papers
Superannuation and Australians' expectations: Polling Project, ASFA (November 2020).

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.

IFRS consultation: Open for comment
Tentative agenda decision and comment letters: Sale and leaseback of an asset in a single-asset entity (IFRS 10 and IFRS 16).
Comments due by 23 November 2020.

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.

AIST submissions
AIST submission to Treasury – Your Future, Your Super proposals
AIST supports the government’s intention to address underperforming superannuation products, improve transparency and disclosure, and reduce the number of duplicate accounts in the superannuation system. AIST has undertaken and supported policy activity to achieve these outcomes over many years (09 November 2020).

AIST newsletters

AIST policy news
Royal Commission legislation/APRA rem standard/ATO services survey and more (12 November 2020).  More...

Policy news
House Economics committee | IDR roundtable | Rest climate case & more (05 November 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 submissions on proposed changes to its Rules 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.

Cases

Blazejczyk and Australian Securities and Investments Commission [2020] AATA 4352
PROFESSIONAL SERVICES – financial services – banning order – where Applicant prohibited from provision of any financial services for five years – where Applicant accepted banning and prohibition period but sought to limit scope of banning to “personal advice” to “retail clients” – whether limited or permissive banning order appropriate – reviewable decision affirmed

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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