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Inside track: Superannuation, Funds Management & Financial Services

23 March 2020

#Superannuation, Funds Management & Financial Services

Inside track: Superannuation, Funds Management & Financial Services

In the media

Guidance on CPD compliance arising from COVID-19 business disruption
The Financial Adviser Standards and Ethics Authority (FASEA) has received enquiries relating to operation of CPD requirements resulting from current COVID-19 business disruption (19 March 2020).   More... 

APRA to update heatmap with fees and costs data
The APRA will update its MySuper Product Heatmap in June 2020 with the latest fees and costs data. The update will be published in June 2020 and is aimed to reflect actions taken by trustees (19 March 2020).   More... 

Financial regulators poised for action
Australia's financial regulators stand ready to take a range of actions to ensure the effective operation of financial markets, including the relaxation of some regulatory requirements and the acceleration of outstanding customer remediation (16 March 2020).   More... 

Lack of independence must be made clear: ASIC
Financial advisers will need to provide every retail client a written statement explaining "simply and concisely" why they are not independent, impartial and unbiased; if ASIC's draft recommendations for advice fees are adopted (10 March 2020).  More... 

Insurers can’t be translators, AFCA says
The Australian Financial Complaints Authority has determined it is not the responsibility of an insurance provider to ensure customers with little fluency in English understand the wording of policies (09 March 2020).  More... 

In practice and courts 

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

Cases

Carmody v Superannuation Complaints Tribunal [2020] FCA 291
SUPERANNUATION – appeal from determination of Superannuation Complaints Tribunal – whether decision of Commonwealth Superannuation Corporation to comply with Child Support Agency notices was fair and reasonable – benefits payable under the Military Superannuation and Benefits Act 1991 (Cth) – benefits payable under Veterans’ Entitlements Act 1986 (Cth) - meaning of employer in s 45 of the Child Support (Registration and Collection) Act 1988 (Cth) - whether the Commonwealth Superannuation Corporation was an employer for the purposes of s 45 – meaning of “work and income support related withholding payments” in s 45 of the Child Support (Registration and Collection) Act 1988 (Cth) – meaning of a person who “holds, or may subsequently hold” in s 72A of the Child Support (Registration and Collection) Act 1988 (Cth) - whether the Commonwealth Superannuation Corporation was a person who “holds, or may subsequently hold” money on behalf of the applicant for the purposes of s 72A – whether compliance by the Trustee with a ss 45 or 72A notice altered the invalidity benefits of the applicant contrary to regulation 13.16 of the Superannuation Industry (Supervision) Regulations 1994 (Cth) – regulation 13.12 of the Superannuation Industry (Supervision) Regulations 1994 (Cth) - whether compliance by the Trustee with the ss 45 or 72A notices created an assignment of the invalidity benefits of the applicant – regulation 13.13 of the Superannuation Industry (Supervision) Regulations 1994 (Cth) - whether compliance by the Trustee with the ss 45 or 72A notices recognised, encouraged or sanctioned a charge over the invalidity benefits of the applicant – the proper machinery by which to object to decisions under the Child Support (Assessment) Act 1989 (Cth) – appeal dismissed

Australian Securities and Investments Commission v King [2020] HCA 4
Appeal allowed. Corporations – Officers – Meaning of "officer" of corporation – Where para (b)(ii) of definition in s 9 of Corporations Act 2001 (Cth) defined "officer" of corporation as person who had capacity to affect significantly corporation's financial standing – Where MFS Investment Management Pty Ltd ("MFSIM") responsible entity of registered managed investment scheme, Premium Income Fund ("PIF") – Where MFSIM entered into loan facility to be used solely for purposes of PIF – Where MFSIM drew down on loan facility to pay debts of other related companies in MFS Group – Where MFSIM secured no promise of repayment of funds to PIF – Where first respondent was Chief Executive Officer of parent company of MFS Group – Where first respondent acted as "overall boss" of MFS Group and assumed "overall responsibility" for MFSIM – Where first respondent approved and authorised disbursement of funds from loan facility knowing no benefit or consideration would pass to PIF – Where first respondent not director of MFSIM at relevant time – Where Australian Securities and Investments Commission alleged first respondent breached duties as officer of MFSIM in contravention of Corporations Act – Whether para (b)(ii) of definition of "officer" in Corporations Act requires person to have acted in recognised position within corporation with rights and duties attached to it – Whether first respondent "officer" of MFSIM.
Corporations Act 2001 (Cth), ss 9, 179, 180, 601FD.

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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