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Inside track: Superannuation, Funds Management & Financial Services

21 September 2020

#Superannuation, Funds Management & Financial Services

Inside track: Superannuation, Funds Management & Financial Services

In the media

FPA highlights shifts in consumer behaviour and the importance of universal access to financial advice in the “new normal”
FPA – 16 September 2020 - Australians are making long term changes in their spending behaviour to minimise the impact of COVID-19 on their finances, according to CoreData research presented at The Financial Planning Association’s (FPA) keynote event held earlier this month.  More...

Intrafund advice must leave clients better off says ASIC
MEDIA - 15 September 2020 - Intrafund advice needs to pass the test of having left the client better off, according to the Australian Securities and Investments Commission (ASIC).  More...

We have the power to obtain documents says ASIC
MEDIA – 14 September 2020 - Financial services companies cannot necessarily rely on claims of legal privilege, with the ASIC using recent Federal Court decisions, including one against IOOF’s RI Advice, to reinforce the manner in which it has a right to access documents held by companies (14 September 2020).  More...

NAB hit with $57.5m penalty
MEDIA - 14 September 2020 - The court also found that MLC and NULIS misled members and deducted approximately $71.9 million plan service fees from around 457,000 members of MasterKey Personal Super linked to plan advisers where plan advisers were not required to provide services and members did not receive services or any services they could not otherwise obtain for free.  More...

Reviews of judicial impartiality and the legislative framework for corporations and financial services regulation
ATTORNEY-GENERAL – 11 September 2020 - Morrison Government has referred two matters to the Australian Law Reform Commission for review. First, on the issue of judicial impartiality, and the second, a review of the legislative framework for corporations and financial services regulation.  More...

Govt urged to include unpaid SG in FEG
MEDIA - 08 September 2020 - Unpaid superannuation guarantee (SG) contributions should become part of the Government’s Fair Entitlements Guarantee (FEG), according to the Association of Superannuation Funds of Australia.  More...

In practice and courts

Retirement income review modelling - fiscal results
Rice Warner; Industry Super Australia: 14 September 2020
Industry Super Australia, in the context of the federal government’s Retirement Income Review, commissioned this research from Rice Warner to assess the impacts of various policy options utilising their comprehensive econometric model of the Australian superannuation system.  More...

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 (14 September 2020).  More...

APRA frequently asked questions on MySuper Product Heatmap
Frequently asked questions (FAQs) concerning the release of the 2020 MySuper Product Heatmap in December 2020. The new FAQs are available on the APRA website here.

APRA reminder: Superannuation licensees on upcoming legislative obligations
Registrable superannuation entity 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.

ATO: COVID-19 early release of super
Information about the eligibility and application process for the COVID-19 early release of super scheme until 30 June 2020 for the 2019-20 year and between 1 July 2020 and 24 September 2020, for the 2020–21.  More...

ASIC Corporations, Superannuation and Credit (Amendment) Instrument
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.

AIST Policy News
Policy News - 10 September 2020
10 September 2020 - Profit-to-member funds, ISPT and ISH appear before Parliamentary hearing & more

Cases

Australian Securities and Investments Commission v MLC Nominees Pty Ltd [2020] FCA 1306
CORPORATIONS – admitted contraventions of the Corporations Act 2001 (Cth) and the Australian Securities and Investments Commission Act 2001 (Cth) (the ASIC Act) related to the charging and deductions of fees and representations about the right to charge fees from members of superannuation funds – imposition of penalties pursuant to s 12GBA of the ASIC Act – where quantum of penalties is contested
While MLC Nominees Pty Ltd (MLC Nominees) was trustee of The Universal Super Scheme, MLC Nominees failed to do all things necessary to ensure that the financial services covered by its Australian Financial Services Licence Number 230702 were provided efficiently, honestly and fairly, and thereby contravened s 912A(1)(a) of the Corporations Act 2001 (Cth) (the Corporations Act).

Legislation

Commonwealth

Superannuation Amendment (PSSAP Membership) Act 2020
09/09/2020 - Act No. 86 of 2020

Treasury Laws Amendment (Your Superannuation, Your Choice) Act 2020
08/09/2020 - Act No. 80 of 2020 as made

Treasury Laws Amendment (2020 Measures No. 2) Bill 2020
Assent Act no: 79 Year: 2020 03 September 2020
Amends the: Income Tax Assessment Act 1997 to: Amend the hybrid mismatch rules inckuding International Finance Corporation Act 1955 and International Monetary Agreements Act 1947 to: Establish frameworks under which Australia may enter into agreements with the International Bank for Reconstruction and Development and the International Finance Corporation of the World Bank Group to buy additional shares of their respective capital stocks; and authorise appropriations from the Consolidated Revenue Fund for the purposes of such payments.
See Treasury Laws Amendment (2020 Measures No. 2) Act 2020
Act No. 79 of 2020 as made

Regulation

ASIC Corporations and Credit (Repeal) Instrument 2020/839
14/09/2020 - This instrument repeals the ASIC Corporations (Concept Validation Licensing Exemption) Instrument 2016/1175 and the ASIC Credit (Concept Validation Licensing Exemption) Instrument 2016/1176.

Anti-Money Laundering and Counter-Terrorism Financing Rules Amendment Instrument 2020 (No. 4)
14/09/2020 - The purpose of the Anti-Money Laundering and Counter-Terrorism Financing Rules Amendment Instrument 2020 (No. 4) (the Amendment Instrument) is to amend Chapter 77 of the AML/CTF Rules.

Australian Prudential Regulation Authority (confidentiality) determination No. 2 of 2020
09/09/2020 - This instrument provides that information given to the Australian Prudential Regulation Authority under Reporting Standard ARS 923.2 Repayment Deferrals is non-confidential.

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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