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Inside track: Superannuation, Funds Management & Financial Services

23 August 2021

#Superannuation, Funds Management & Financial Services

Inside track: Superannuation, Funds Management & Financial Services

In the media

Less than one-in-three chance of defending 'know your client' complaint
MEDIA – 19 August 2021 – failure to ensure clients understand risk profile questionnaires can mean advisers fail the ‘know the client’ obligation and leave them open to a complaint, according to a report.  More...

Super trustees to come under ‘more intrusive regulation’
MEDIA – 19 August 2021 – scrutiny is the biggest challenge for the superannuation industry, according to APRA board member, Margaret Cole, who said the regulator was exploring enforcement activity.  More...

Nationalising superannuation – an illiberal idea
ASFA – 19 August 2021 – the Association of Superannuation Funds of Australia described the discussion paper from Senator Andrew Bragg to nationalise superannuation and default workers’ retirement savings into a government-run investment fund, as facile and at odds with concerns regarding concentration and common ownership of ASX companies.  More...

Superannuation portfolio holdings disclosure
TREASURY – 17 August 2021 – the Morrison Government has released for consultation exposure draft regulations underpinning superannuation fund portfolio holdings disclosures to members, part of the Your Future, Your Super reforms, which passed the Parliament on 17 June 2021.  More...

ASIC’s approach to new laws reforming financial services sector
ASIC – 12 August 2021 – six reforms arising out of recommendations from the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry and other inquiries will commence in October are outlined here.

Measured approach needed to retirement income covenant
SMSF Association – 12 August 2021 – the SMSF Association is calling for a measured approach to the introduction of the proposed retirement income covenant for superannuation fund trustees.  More...

Multiple accounts number well down, but $3.6 billion in ATO-held unclaimed super remains
ASFA – 12 August 2021 – the Association of Superannuation Funds of Australia has released a new research paper which estimates the number of unwanted multiple accounts in the system and what the costs of that are for fund members. The paper also tracks the massive reduction in the number of multiple accounts in recent years.  More...

In practice and courts

Consultation exposure draft regulations: Your Future, Your Super reforms
The final exposure draft regulations and explanatory statement have been refined to ensure the regime is cost-effective and in members best financial interests These changes will further support strengthening the transparency of the superannuation system and assist members in making more informed decisions. The Superannuation Portfolio Holdings Disclosure is open until 31 August 2021.

ASIC consultation: Draft guidance for the hawking reforms
'ASIC’s guidance gives additional clarity on how the changes may affect commercial practices, systems and processes. All interested stakeholders have until 17 August to provide feedback on CP 346. ASIC will publish its final guidance in September 2021, ahead of the revised hawking prohibition commencing on 5 October 2021.  More...

ASIC Consultations: CP 340 Breach reporting and related obligations
This consultation paper set out our proposals for providing guidance to Australian financial services licensees and Australian credit licensees on the breach reporting obligation that applies from 1 October 2021. The obligations require these licensees to notify, investigate and remediate breaches of the law in certain circumstances.  More...

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.

APRA publishes additional FAQs on the Superannuation Data Transformation Phase 1 reporting standards
16 August 2021 – APRA has published additional frequently asked questions to provide further guidance to RSE licensees on the reporting standards for Phase 1 of the Superannuation Data Transformation project.  More...

AFCA Current Matters
Important information for consumers about Forex Capital Trading Pty Ltd (Updated August 2021).

ASFA Submissions
18/08/2021 Submission to Treasury – Financial Accountability Regime
18/08/2021 Submission to ASIC – Consultation Paper 346 The hawking prohibition: Update to RG 38
16/08/2021 Submission to Treasury – Financial Services Royal Commission – Compensation Scheme of Last Resort consultation

AIST Submissions
AIST Submission: The hawking prohibition: Update to RG 38 19 August 2021
AIST supports the proposed updates to RG 38 to protect consumers from being sold unwanted products. Further guidance is suggested to assist licensees meet the proposed obligations.
AIST Submission to Treasury: Compensation Scheme of Last Resort 18 August 2021
AIST reiterates the lack of evidence of uncompensated losses within superannuation and highlights existing industry-funded mechanisms that minimise the risk of these losses occurring.
AIST Submission to Treasury: Financial Accountability Regime 12 August 2021
AIST fully supports the principles of accountability, responsibility, and transparency which underpin the proposed Financial Accountability Regime.

AIST Legislation updates
Stay up to date with the status of legislation in Australia's parliament
Legislation update – 19 August 2021
Legislation update – 12 August 2021

Legislation

Commonwealth

Bills

Treasury Laws Amendment (2021 Measures No. 1) Bill 2021
Assent Act no: 82 Year: 2021 13 August 2021
Amends the: Corporations Act 2001 to: Allow companies to execute documents, hold meetings, provide notices relating to meetings and keep minutes using electronic means or other alternative technologies until 16 September 2021; and make contingent amendments; and Australian Securities and Investments Commission Act 2001 and Corporations Act 2001 to: Provide that all civil penalty proceedings commenced under the continuous disclosure and misleading and deceptive conduct provisions must prove that an entity or officer acted with 'knowledge, recklessness or negligence' in respect of an alleged contravention; and make consequential amendments.

Acts

Treasury Laws Amendment (2021 Measures No. 1) Act 2021
18/08/2021 – Act No. 82 of 2021 as made

Act Compilation

Superannuation (Unclaimed Money and Lost Members) Act 1999
17/08/2021 – Act No. 127 of 1999 as amended

Regulations

Superannuation (PSS) Membership Exclusion Amendment (Judges) Declaration 2021
17/08/2021 – this instrument amends the Superannuation (PSS) Membership Exclusion Declaration 1995 to update references to Federal Magistrates of the Federal Magistrates Court with references to Judges of the Federal Circuit and Family Court of Australia (Division 2) to ensure that the membership eligibility exclusion in respect of these judges continues after the merger of the Federal Circuit Court and the Family Court of Australia.

Superannuation (PSSAP–Ordinary Employer-Sponsored Member Exclusion) Amendment (Judges) Determination 2021
12/08/2021 – this determination amends the Superannuation (PSSAP–Ordinary Employer-Sponsored Member Exclusion) Determination 2020 to update references to Judges of the Federal Circuit Court with references to Judges of the Federal Circuit and Family Court of Australia (Division 2).

Superannuation (CSS) (Eligible Employees–Exclusion) Amendment (Judges) Declaration 2021
11/08/2021 – this instrument amends the Superannuation (CSS) (Eligible Employees—Exclusion) Declaration 2003 by replacing references to Judges of the Federal Circuit Court with references to Judges of the Federal Circuit and Family Court of Australia (Division 2) to ensure that the membership eligibility exclusion in respect of these judges continues after the merger of the Federal Circuit Court and the Family Court of Australia.

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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