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Inside track: Superannuation, Funds Management & Financial Services

19 May 2020

#Superannuation, Funds Management & Financial Services

Inside track: Superannuation, Funds Management & Financial Services

In the media

Ten super funds covered two thirds of early release total
APRA has published its first round of fund-level data on the superannuation early release measure, reporting two weeks into the scheme, the 10 funds with the highest number of applicants had paid out a total of $4.2 billion (11 May 2020).  More...

APRA publishes first fund-level data on superannuation early release scheme
The APRA’s  latest data on the temporary early release of superannuation scheme has found trustees are processing 96 per cent of payments within five business days (11 May 2020).  More...

ASIC bans three financial advisers
Three financial advisers have been banned by the Australian Securities and Investments Commission (ASIC): Christopher Harris for 10 years, and Bimaljeet Sekhon and Alan Davies for three years each (11 May 2020 ).  More...

Update on the implementation of the Banking, Superannuation and Financial Services Royal Commission
The Morrison Government has announced a six month deferral to the implementation of commitments associated with the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry as a result of the significant impacts of the coronavirus (08 May 2020 ).  More...

Deferring the implementation of Royal Commission recommendations is pragmatic and sensible
ASFA said that the updated implementation timeframe of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry (Royal Commission) was appropriate, given the significant impact COVID-19 has had both on Government and the superannuation industry (08 May 2020).  More...

FPA response to deferral of Royal Commission recommendations due to COVID-19
The FPA welcomes the Government’s clarity on the timings around the measures the Government had indicated it would introduce into the Parliament by 30 June 2020. However, given the current uncertain environment, the FPA believes the Government should remain open to reviewing the timeline (08 May 2020). More...

ASIC warns consumers: Investment advertising is not always ‘true to label’
ASIC warns consumers about investment advertising that compares fixed-term investment products to bank term deposits, which are not protected by the Government’s Financial Claims Scheme, and not supervised by APRA (07 May 2020).  More...

AIST: Early release insights coming into focus
More than one million Australians have applied for early release, and a new survey assesses members’ attitudes towards the scheme, affter nearly three weeks of profit-to-member super funds working round the clock to process payouts relating to the Government’s COVID-19 early release scheme (07 May 2020).  More...

Early release super fraud detected
The Australian Taxation Office (ATO) has called in the Federal Police to investigate incidences of apparent fraud against the Government hardship superannuation early release scheme (07 May 2020).  More...

Tax agents potentially compromised in early access to super fraud: ATO
A sophisticated fraud of the early access to super scheme could have involved a breach of security at accounting firms, a Senate inquiry has heard. AFP Commissioner Reece Kershaw said said early investigations had indicated there was an “intrusion into a third party” that was not a government agency (07  May 2020 ).  More...

Pershing pleads guilty to mishandling client money
Pershing Securities Australia (PSAL) has pleaded guilty to mishandling client monies and in turn is the first company in Australia to face criminal prosecution for breaching client money provisions (06 May 2020).  More...

Strong demand for early super access prompts FPA to launch digital Record of Advice solution for members
The Financial Planning Association of Australia (FPA) has announced the availability of digital versions of the Record of Advice (ROA) solution ‘template’ to support members who have been inundated with requests for advice, following strong demand for early super access (05 May 2020).  More...

APRA publishes first data on temporary early release of superannuation scheme
All 167 funds that APRA requested data from regarding early release payments provided it to APRA, although not all funds had received applications from the ATO or paid benefits to members during the week (04 May 2020).    More...

Olive Financial Markets Pty Ltd director banned from financial services, AFSL cancellation stayed pending AAT review
ASIC has cancelled the Australian financial services (AFS) licence of Olive Financial Markets Pty Ltd (Olive) following concerns that it had not complied with its obligations as an AFS licensee and that it was likely that Olive would contravene its obligations in the future (04 May 2020).  More...

In practice and courts

ASFA: Guidelines for debt agreement administrators
We have made important temporary updates to the certified duties of debt agreement administrators, regarding proposals to vary debt agreements. These changes are currently in affect for six months (until 30 September 2020). For more information see Practitioners: COVID-19 and changes to debt agreements. For updated general guidelines for practitioners, see Practitioners: COVID-19 and updated advice from the Inspector-General

ASIC REP 660 ASIC Enforcement Update July to December 2019
ASIC’s overview of enforcement outcomes, priorities and cases during the period 1 July 2019 to 31 December 2019: see here. View the report here. ASIC Enforcement update July to December 2019 (29 April 2020). 

ASIC Corporations (AFCA Regulatory Requirement) Instrument 2020/0433
Imposes additional conditions on the AFCA scheme relating to 'SMEG Loans' and repayment deferrals for business loans impacted by COVID-19 (07 May 2020).  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, ATO will continue to apply the existing law to the SGC statements you lodge. For more information see the: Treasury Laws Amendment (Recovering Unpaid Superannuation) Bill 2019

AIST Submissions
08 May 2020 - CP329 - Advice fee consents and independence disclosure
AIST supports the implementation of lack of independence disclosure. AIST advocates for more guidance on what the content of this disclosure should include, in order to ensure that clients can understand what this disclosure means and the impact it may have on the financial advice being received.   More...

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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