Artboard 1Icon/UI/CalendarIcons/Ionic/Social/social-pinterest

Inside track: Superannuation, Funds Management & Financial Services

25 January 2021

#Superannuation, Funds Management & Financial Services

Inside track: Superannuation, Funds Management & Financial Services

In the media

Industry funds urge extension of intra-fund advice
MEDIA – 19 January 2021 – Industry superannuation funds have backed the deduction of one-off advice fees from superannuation balances at the same time as arguing for an extension of the ability to provide advice around household retirement adequacy and pension eligibility.  More...

APRA hoses down calls for retail fund investigation
MEDIA – 19 January 2021 – The prudential regulator has declined to investigate a major retail super fund for hiking insurance premiums by more than 40 per cent despite the federal opposition’s protestations, saying the price rises were “within the range of premium increases” being seen across the industry.  More...

Financial advice sector reforms for better retirement
TREASURY – 15 January 2021 – The Morrison Government is committed to strengthening the financial advice sector and providing consumers with better access to affordable and high quality financial advice, as the industry is adapting and innovating in response to the challenges of COVID-19 (15 January 2021).  More...

Govt warned super performance tests will skew investments
MEDIA – 14 January 2021 – The Government’s proposed member outcomes test will place superannuation funds at risk of being forced to make investment decisions where short-termism is the over-riding imperative and which are not necessarily in the best interests of their members over the medium to long-term.  More...

Super opt out plan a ‘tax grab’: ISA
ISA – 13 January 2021 – The proposed Government plan to allow Australians to “opt out” of compulsory super by making the superannuation guarantee increase to 12 per cent optional will be a “tax grab” on the average Australian family, according to Industry Super Australia (ISA).  More...

Govt intent on undermining financial outcomes: AIST
MEDIA – 13 January 2021 – The Morrison Government seems intent on undermining financial outcomes for Australians in retirement given its latest superannuation proposal, the Australian Institute of Superannuation Trustees (AIST) believes.  More...

Workers shouldn’t have to choose between 12 per cent super or a pay rise
AIST – 13 January 2021 – Australians are likely to be financially worse off over their lifetime under a proposal being by the Morrison Government to give workers a choice of a super rise or a pay rise, The Institute of Superannuation Trustees (AIST) warned.  More...

ACCC amends Consumer Data Right (CDR) Rules in Australia
MEDIA – 12 January 2021 – The ACCC has made some significant amendments to the Consumer Data Right Rules, following the consent from the Treasurer. These new rules do not include rules about tiers of accreditation, the disclosure of ‘insights’ derived from CDR data to any non-accredited person, or the sharing of data with trusted advisors, 2021.  More...

Govt lobbied to be clearer on super fund buy-sell spreads
MEDIA – 12 January 2021 – The cost of buy-sell spreads should be charged on a fair and reasonable basis as part of activity within a superannuation lifecycle product, according to the Association of Superannuation Funds of Australia.  More...

In practice and courts

ASIC Papers open for public comment

ASIC CP 335: Consumer remediation guidance
ASIC has released a consultation paper on proposed updates to Regulatory Guide 256: Client review and remediation conducted by advice licensees. Consultation Paper 335 Consumer Remediation: Update to RG 256 (CP 335) includes clarification of RG 256’s application to all financial services licensees, credit licensees and superannuation trustees. Submissions on CP 335 are due by 26 February 2021.
ASIC has also released Making it Right: How to run a consumer centred remediation, a resource that offers immediate help to licensees with the day-to-day design and execution of consumer-centred remediations.

CP 333 Implementing the Royal Commission recommendations: Reference checking and information sharing
Comments close 29 January 2021. Seeks feedback on ASIC's proposed approach to implementing aspects of the law reform arising from Royal Commission Recommendations 1.6 and 2.7. relating to the reference checking and information sharing protocol for financial advisers and mortgage broker.  More...

ASIC regulatory documents
21/01/2021 INFO 240 AFS licence applications: Providing information for fit and proper people and certain authorisations (reissued)
15/01/2021 RG 1 AFS Licensing Kit: Part 1 – Applying for and varying an AFS licence (reissued)
15/01/2021 RG 2 Licensing Kit: Part 2 – Preparing your AFS licence application (reissued)
Technical updates to add ‘providing a claims handling and settling service’ as a financial service for the purposes of applying for an AFS licence (in line with the addition of the C12 proof, Insurance Claims Handling and Settling Service Statement to RG 3 on 24 December 2020.
The updated regulatory guides will help applicants prepare an application for an AFS licence (or variation to an existing AFS licence) authorising them to provide an insurance claims handling and settling service. Applicants can apply for an AFS licence or variation with this authorisation from 1 January 2021.

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.

AFSA: Guidelines for debt agreement administrators
This document seeks to provide some guidance to practitioners in relation to COVID-19 and its effect on our stakeholders. The changes outlined here will remain in place until 31 December 2020. For updated general guidelines for practitioners, see Practitioners: COVID-19 and updated advice from the Inspector-General.

IASB reviews package of IFRS Standards for group accounting
The International Accounting Standards Board is calling for feedback on the IFRS Standards for group accounting – IFRS 10 Consolidated Financial Statements, IFRS 11 Joint Arrangements and IFRS 12 Disclosure of Interests in Other Entities. Further information about post-implementation reviews can be found in the Handbook. The deadline for comments is 10 May 2021.

FSC submissions
13 January 2021 FSC Submission - Your Future, Your Super draft legislation

FPA submissions
18 January 2021 Consultation Paper 332: Promoting access to affordable advice for consumers

ISA submissions
18 January 2021 Promoting access to affordable advice for consumers - ASIC Consultation Paper 332

AIST submissions
18 January 2021 AIST submission: ASIC CP 332: Promoting access to affordable advice to consumers
AIST proposes that ASIC further promote existing affordable advice options such as intrafund advice in superannuation, and that they be extended to cover more common advice needs. Proposals to improve use of factual information, consistent disclosure, increased certainty about the nature of advice being provided and back-office efficiency are also made.

AIST Newsletters
Policy News – 14 January 2021
14 January 2021 – AIST condemns proposal to opt out of super increase.

Cases

Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia [2021] FWC 108
Fair Work Act 2009 s.739 – application to deal with a dispute.
The new superannuation plan was run by Plum Financial Services. The payout from that fund was based on the investment return of managed funds rather than a defined benefits scheme. Employees had the option to move to a different scheme, but Mr Hoy remained in the default fund with Plum Financial Services.

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.

Share this