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Inside track: Superannuation, Funds Management & Financial Services

02 July 2019

#Superannuation, Funds Management & Financial Services

Inside track: Superannuation, Funds Management & Financial Services

In the media

Beenleigh financial adviser banned for five years
ASIC’s review of Mr Muscat’s advice found that he failed to take into account his clients’ individual circumstances because he used a templated approach for all clients (27 June 2019).  More...

ASIC cancels the AFS licence of Guarded Pty Ltd
The cancellation was effective from 27 May 2019. Guarded failed to maintain competence to provide the financial services authorised by its licence after its responsible manager, who had been appointed as a key person, resigned. It also failed to notify ASIC or put forward a suitable replacement (26 June 2019).  More...

Melbourne adviser permanently banned by ASIC
ASIC has permanently banned Subeer Luthra from providing financial services and engaging in credit activities because of his dishonest conduct. An ASIC review of Mr Luthra’s advice found that he dishonestly recast his clients’ priorities to suit his own interests (26 June 2019).   More...

Firms reminded on exit fees ahead of PYSP
The ASIC is reminding product issuers that as part of their implementation of Protecting Your Super Package, they need to take care that, from 1 July 2019, Product Disclosure Statements do not suggest exit fees will be charged on superannuation products (25 June 2019).  More...

APRA preparing for super stakeholder regulation
APRA is gearing up for its new gatekeeping powers for approving changes to controlling stakes of superannuation licensees, having released a draft form and guide for applications for consultation. The process will bring the body’s ownership powers in the super sector in line with that of banking and insurance (25 June 2019).  More...

Last chance to continue Insurance in Super
This is the last week for many superannuation fund members with inactive accounts to tell those funds if they want to continue their life insurance cover. Most people who have superannuation also have some life and disability insurance cover as part of their super fund.  More...
ASIC’s MoneySmart website also contains information about the new laws (24 June 2019) More...

ASIC falls in line with incoming super laws
The corporate regulator has made changes to its fees and cost disclosure requirements to keep it consistent with the government’s Protecting Your Super Package laws that come into place from 1 July (24 June 2019).  More...

Retail funds are “on the operating table”
Speaking at the Bloomberg BuySide Forum in Sydney today, a panel of industry experts painted a bleak picture of the state of change retail superannuation funds are facing, as they undergo scrutiny following the Banking Royal Commission and ever-growing numbers of both members and default mandates go to industry funds (20 June 2019).  More...

Industry funds urge AFCA to identify culprit firms
The Superannuation Complaints Tribunal received 1,739 complaints of which 91 per cent were resolved, according to its annual report. Industry funds representative body the AIST has urged the Australian Financial Complaints Authority to identify the firms about which it makes determinations while supressing the names of those making the complaints (20 June 2019).  More...

A decade of post-crisis G20 financial sector reforms
The global financial crisis resulted in significant disruption to markets, financial systems and economies. It also led to comprehensive reform of the financial sector by the G20 group of countries (20 June 2019).  More...

AAT upholds ASIC ban of client adviser for trading in ‘MINI’ warrants
ASIC banned a client adviser for a period of four years, expiring on 28 January 2022. In its decision the AAT determined that the ban be varied to expire on 31 December 2020. The AAT found that Mr Menzies had contravened s.1041A of the Corporations Act 2001 and noted that ‘for the holder of an Australian Financial Services licence to be involved in a breach of s.1041A of the Act (19 June 2019). More...

ASIC foreshadows ‘novel’ instances from legacy complaints
As financial planning firms brace for the possibility of having to deal with client complaints dating back to 2008, the Australian Securities and Investments Commission has acknowledged the likelihood of “novel” issues arising which may require further regulatory tweaks (19 June 2019).  More...

AFCA welcomes ASIC approval for legacy complaints
The Australian Financial Complaints Authority (AFCA) has welcomed the Australian Securities and Investments Commission's announcement that it has approved a change to AFCA’s Rules to allow it to investigate certain complaints dating back to 1 January 2008 (18 June 2019).  More...

ASIC commences civil penalty proceeding against Westpac for poor financial advice
In Court documents filed yesterday, ASIC alleges that, in four sample client files selected by ASIC, Mr Sinha breached the 'best interests' duty under the Corporations Act ('the Act'), provided inappropriate financial advice, and failed to prioritise the interests of his clients (15 June 2019).  More...

In practice and courts

APRA prepares for new laws granting approval powers for changes in control of superannuation licensees
APRA has released for consultation a draft form and guide for applications to acquire a controlling stake in a registrable superannuation entity (RSE) licensee. From 5 July, any party seeking to acquire greater than a 15 per cent stake in an RSE licensee must apply to APRA for approval  (24 June 2019).  More...

Explainer: Here's how super is changing on July 1
Big changes to superannuation regulations were passed through parliament earlier this year and have now come into effect next week. (26 June 2019).  More...

ASIC amends fees and cost disclosure to align with Protecting Your Super Package laws
CO 14/1252 modifies the Corporations Act 2001 and Corporations Regulations 2001 to set out requirements for the disclosure of fees and costs in Product Disclosure Statements for superannuation and managed investment products.
Note: the Treasury Laws Amendment (Protecting Your Super Package) Act 2019 is technical only and applies to disclosure concerning superannuation products, and reflects the PYSP ban on exit fees for these products by eliminating the line allowing for disclosure of exit fees. The amendment does not otherwise make any change to the requirements set out in CO 14/1252 (21 June 2019).  More...

ASIC CP 300 Approval and oversight of compliance schemes for financial advisers
The proposals in CP 300 Approval and oversight of compliance schemes for financial advisers are outline here. ASIC is consulting for six weeks on the proposals in the paper and we invite responses by 28 June 2018. We intend to release a regulatory guide setting out our final policy by the end of September 2018.  More...

Financial Adviser Standards and Ethics Authority (FASEA): draft guidance on education pathways for existing financial advisers
Under the professional standards reforms, existing financial advisers have until 1 January 2024 to meet the degree-equivalent requirements set by the Standards Authority. The draft guidance is available on the Standards Authority’s website.  More...

Current AFCA Matters – June 2019

Digital Rebl Pty Ltd and Media Rebl Pty Ltd
Forex Capital Trading Pty Ltd
AGM Markets Pty Ltd
Berndale Capital Securities Pty Ltd
Bestjet Travel Pty Ltd (Bestjet)
Viewble Media and The Shoppers Network

ISA Submissions

27 June 2019 - Submission on AFCA Rules Change Consultation
27 June 2019 - Submission on proposed amendments to MySuper form and Instruction Guide

Gazette - Superannuation Industry (Supervision) Act 1993

Notice of Disqualification - Peter Townsend; Josephine Townsend; Haydene Dunsford;  Carolyne Dunsford; Victoria Dunsford;  Stuart Dunsford

Notice of Disqualification - Rachel Campbell; - John Campbell

Notice of Disqualification - Adam Pearse


Scone Race Club Limited v Commissioner of Taxation [2019] FCA 976
SUPERANNUATION  – Liability for  superannuation  guarantee charge – whether jockeys are to be taken to be employed by the applicant –  Superannuation Guarantee (Administration) Act 1992 (Cth) s 12(8) – whether applicant is liable to make the payment of riding fees to jockeys - where centralised payment system was established by the applicant to control race-related payments – where racing industry is heavily regulated by statute and national and local rules – where jockeys and trainers are required to be licenced by the applicant – where local rule of racing, Rule 72 provided that the race club such as the applicant was liable to pay riding fees to jockeys – whether applicant subject to any obligation in equity to make payment for riding fees to jockeys – where Local Rule 72 did not constitute a representation by the applicant – where riding fees paid by industry regulator directly to jockeys under its centralised payment system – where general industry practice was that jockeys were engaged by trainers on behalf of owners and that race clubs paid riding fees on behalf of owners. HELD – No obligation in equity for applicant to make payment – applicant not deemed to be an employer by s 12(8)(b) Superannuation Guarantee (Administration) Act 1992 (Cth).




Superannuation Supervisory Levy Imposition Determination 2019
28/06/2019 - This determination repeals and replaces the Superannuation Supervisory Levy Imposition Determination 2018 and gives effect to the allocation of levies for the 2019-20 financial year.  

ASIC Corporations (Amendment) Instrument 2019/599
21/06/2019 - This instrument amends ASIC Class Order [CO 14/1252] to ensure that the amendments made by the Treasury Laws Amendment (Protecting Your Superannuation Package) Regulations 2019 (the PYSP Regulations) are given effect and to ensure that modifications to Schedule 10 and Schedule 10D of the Corporations Regulations 2001 made by the class order are not inconsistent with the PYSP Regulations and continue to operate as intended.
Australian Prudential Regulation Authority instrument fixing charges No. 4 of 2019
21/06/2019 - This instrument provides for the provision of statistical information about financial sector entities to the Reserve Bank of Australia and the Australian Bureau of Statistics during the 2018-19 financial year.  


Annual Federal Courts and Tribunals Fee Increases from 1 July 2019
04/06/2019 - Pursuant to section 16 of the High Court of Australia (Fees) Regulations 2012, from 1 July 2019 the fee prescribed for each item of Schedule 1 to those Regulations will be the amount listed here.  

Chris Lovell, Chairman
T: +61 3 9321 9832

Paul Faure, Partner
T: 61 3 9321 9904

Bill Glover, Partner 
T: 61 3 9321 9844

Kylie Wilson, Partner
T: 61 7 3135 0514

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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