Icons/Ionic/Social/social-pinterest

Inside track: Superannuation, Funds Management & Financial Services

25 March 2019

#Superannuation, Funds Management & Financial Services

Inside track: Superannuation, Funds Management & Financial Services

In the media

CFR & ATO report on SMSF borrowing arrangements
A report by the Council of Financial Regulators (CFR) and the Australian Taxation Office (ATO) has found that assets held by self-managed superannuation funds (SMSFs) under 'limited recourse borrowing arrangements' (LRBAs) are unlikely to pose systemic risk to the financial system at this time (22 March 2019).  More...

ASIC cancels the licences of firms that failed to join AFCA
ASIC has, for the first time, cancelled the Australian financial services (AFS) licences of two NSW-based financial services providers for failure to obtain membership of the Australian Financial Complaints Authority (AFCA) scheme (22 March 2019).  More...

New website to improve SMSF knowledge offering to trustees
The SMSF Association has taken the next major step in the evolution of its offering of trustee education and knowledge services with the launch of its new website, SMSF Connect (formerly the Trustee Knowledge Centre) (20 March 2019).  More...

APRA targets climate risks in financial sector
The APRA has pledged to up its scrutiny of how banks, insurers and superannuation trustees are managing the financial risks of climate change to their businesses, following the release of its first survey on the matter (20 March 2019).  More...
Copies of the Information Paper containing the full survey results are available on APRA’s website.

ASIC given extra powers under new proposal
MEDIA - 20 March 2019 - The corporate regulator will have more powers to hold financial services industries to account for misconduct under a new government proposal. The consultation is in response to Recommendation 1.15 of the Hayne commission’s final report to enhance the current approved codes framework in the Corporations Act 2001.  More...

Taking action on the Banking, Superannuation & Financial Services Royal Commission
TREASURY - 18 March 2019 - Recommendation 1.15: Enforceable code provisions: The Coalition Government has released a consultation paper on making provisions of financial services industry codes of conduct more enforceable and providing both the regulator and consumers with more powers to hold financial services firms to account for misconduct.  More...

Class action against former investment manager wraps
Around 201 investors have received approximately $1.5 million in one of multiple class action claims against a former investment manager and affiliated financial services businesses. The entitlements rose from claims against the insurance money recovered by the liquidator (19 March 2019).  More...

Consultation now  open on AFCA Rules changes
AFCA is seeking submissions on proposed changes to its Rules which will expand its jurisdiction to deal with eligible complaints about conduct dating back to 1 January 2008 (18 March 2019).  More... 

Increasing SMSFs from four to six members gets thumbs up
The SMSF Association has thrown its weight behind the Federal Government’s proposal to increase the maximum number of members in a self-managed super fund (SMSF) from four to six (18 March 2019).  More...

AIST welcomes new Board directors
The Australian Institute of Superannuation Trustees (AIST) has welcomed a new director to its Board following an election at its 2019 AGM held at AIST conference CMSF. Ros McLennan from Sunsuper was elected as a Trustee elected director and is the only new director to join the board (18 March 2019).  More...

ASIC pledges to take on big financial players
ASIC has indicated it will be tackling corporate governance in a number of large financial services companies with a specially made taskforce in its new report on corporate finance regulation. The report, ASIC Regulation of Corporate Finance: July to December 2018 covers ASIC’s regulation of fundraising transactions, mergers and acquisitions, experts and corporate governance issues (18 March 2019).  More...

Vital signs: It’s one thing to back down on Hayne’s recommendation about mortgage brokers, it’s another to offer nothing in its place
Josh Frydenberg wants to leave mortgage broker commissions unchanged for three years. It's hard to see why (15 March 2019).  More...

Review of mortgage broking trail commissions
Following consultation with the mortgage broking industry and smaller lenders, the Coalition Government has decided to not prohibit trail commissions on new loans, but rather review their operation in three years' time. The review will be conducted by the Council of Financial Regulators and the ACCC (12 March 2019).  More...

Budget can help slash burden of legacy products
The Federal Government should use next month’s Budget to advance policy commitments to help the financial services sector to get rid of old, substandard legacy products that do not benefit consumers, FSCl CEO Sally Loane. The FSC has estimated there are at least 600 legacy structures (11 March 2019).  More...

AIST demands policy targeting super gender gap
The Australian Institute of Superannuation Trustees has created a four-step plan to help close the gender savings gap at retirement, calling for policy action from the government (11 March 2019).  More...

In practice and courts

Consultation: Now open on AFCA Rules changes
AFCA is specifically seeking feedback on whether the proposed changes satisfy the requirements of the new authorisation conditions and if the proposed additions to AFCA’s Operational Guidelines adequately explain how they will apply. It is anticipated that the amended Rules will be released in June 2019. Submissions close on Friday 12 April 2019. See the consultation paper, draft amendments to the Rules and draft amendments to the Operational Guidelines on the AFCA website (18 March 2019).

ASFA notice
Cryptocurrency – AFSA guidance for practitioners  14 March 2019
AFSA has released guidance for bankruptcy trustees about cryptocurrency, including how to identify, classify and realise digital assets.

FPA launches Return to Learn online education hub to help financial planners navigate FASEA standards
The Financial Planning Association of Australia (FPA) has launched Return to Learn, an online education portal designed to cut through misinformation and confusion about FASEA’s higher education requirements. FPA members and licensees can adopt the FPA CPD policy as their own by 31 March 2019.  More...

Treasury consultation: Removal of claims handling exemption
The Coalition Government has released a consultation paper on removing the exemption of insurance claims handling from the definition of ‘financial service’ under the Corporations Act. Through this consultation process, the Government will identify the most appropriate way to implement Commission Hayne’s recommendation.
Submissions close on 29 March 2019. The consultation paper is available on the Treasury website.

AFCA Current Matters – March 2019
AGM Markets Pty Ltd
Berndale Capital Securities Pty Ltd

IFAC: Global Consultation on Quality Management for Firms and Engagements Now Open
The International Auditing and Assurance Standards Board (IAASB) seeks public comment by July 1, 2019 on three interrelated standards that address quality management. The proposals bring important changes to the way professional accountancy firms are expected to manage quality—for audits, reviews, and other assurance and related services engagements 

ASIC Consultation: Responsible Lending Guidance
ASIC has issued a consultation paper to update its guidance on responsible lending (CP 309).
ASIC wants to ensure its guidance provides industry with certainty, including as a result of emerging technology and initiatives such as open banking and comprehensive credit reporting. ASIC is currently welcoming submissions from interested parties. The consultation is open for a period of three months, with comments due by 20 May 2019.

Treasury Consultation: Minor superannuation tax reform technical amendments and amendments to running balance accounts
The consultation exposure draft legislation and regulations covers six measures that address important issues affecting retirees announced in October last year. The legislation also includes amendments that permit the Commissioner of Taxation to account for additional tax debts in running balance accounts. The Government invites stakeholder feedback on the exposure draft legislation and regulations. The Consultation concludes on March 27. See further details here Treasury website 

Gazette - Superannuation Industry (Supervision) Act 1993

22/03/2019
Notice of Disqualification - Haviv Alfassi

20/03/2019
Notice of Disqualification - Teresa Vasey; David Vasey; Heather Carter; Sladan Ilic

19/03/2019
Notice of Disqualification – Susan Croese; Bernard Croese; Leanne Clark

18/03/2019
Notice of Disqualification - Timothy Clark; Ngoc Do; Sirocco; Maurice Calculli; Lyubov Calculli

14/03/2019
Notice of Disqualification - Ann Lay; Paul Lay

Cases

Moffet v Dental Corporation Pty Ltd  [2019] FCA 344  
INDUSTRIAL LAW – whether Respondent misrepresented employment as independent contracting arrangement – whether Respondent failed to make payments for accrued but untaken annual leave – whether Respondent failed to make payments with respect to accrued long service leave – whether Applicant was an employee or independent contractor at common law – consideration of general principles when determining whether a person is an employee or independent contractor – whether Applicant a “worker” for the purposes of the Long Service Leave Act 1955 (NSW).
SUPERANNUATION – where Respondent did not make superannuation contributions on behalf of Applicant – whether Respondent required to make superannuation contributions – whether the Applicant an employee for the purposes of the Superannuation Guarantee (Administration) Act 1992 (Cth) – consideration of wider statutory definition of employee.

Legislation

Commonwealth

Bills

Treasury Laws Amendment (Enhancing Whistleblower Protections) Bill 2018
Assent Act no: 10 2019 – 12 March 2019 - Amends the: Corporations Act 2001 to consolidate and broaden the existing protections and remedies for corporate and financial sector whistleblowers; Taxation Administration Act 1953 to create a whistleblower protection regime for disclosures of information by individuals regarding breaches of the tax laws or misconduct relating to an entity’s tax affairs; and Banking Act 1959, Insurance Act 1973, Life Insurance Act 1995 and Superannuation Industry (Supervision) Act 1993 to make consequential amendments.  More...
See Act No 10 here.

Regulations

Superannuation (CSS) Approved Authority Amendment Declaration (No. 1) 2019
21/03/2019 - This instrument amends the Superannuation (CSS) Approved Authority Declaration 1995 to include the National Housing Finance and Investment Corporation (NHFIC) as an approved authority for the purposes of the Superannuation Act 1976.  More... 

Superannuation (PSSAP) Approved Authority Inclusion Amendment Declaration (No. 1) 2019
21/03/2019 - This instrument amends the Superannuation (PSSAP) Approved Authority Inclusion Declaration 2008 to include the National Housing Finance and Investment Corporation (NHFIC) as an approved authority for the purposes of the Superannuation Act 2005.  More... 

Superannuation (PSS) Approved Authority Inclusion Amendment Declaration (No. 1) 2019
21/03/2019 - This instrument amends the Superannuation (PSS) Approved Authority Inclusion Declaration 1995 to include the National Housing Finance and Investment Corporation (NHFIC) as an approved authority for the purposes of the Superannuation Act 1990.  More... 

Contacts:
Melbourne
Chris Lovell, Chairman
T: +61 3 9321 9832
E: chris.lovell@holdingredlich.com

Paul Faure, Partner
T: 61 3 9321 9904
E: paul.faure@holdingredlich.com

Bill Glover, Partner 
T: 61 3 9321 9844
E: bill.glover@holdingredlich.com

Brisbane
Kylie Wilson, Partner
T: 61 7 3135 0514
E: kylie.wilson@holdingredlich.com

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