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Inside track: Superannuation, Funds Management & Financial Services

04 June 2019

#Superannuation, Funds Management & Financial Services

Inside track: Superannuation, Funds Management & Financial Services

In the media

Gold Coast financial adviser banned for five years
ASIC has banned Gold Coast adviser Daniel John Renneberg from providing financial services for five years after a surveillance found that he had failed to act in the best interests of his clients (31 May 2019).  More... 

Dishonesty is dishonesty': AMP super fund holders launch court action to claw back lost money
Scandal-plagued wealth management firm AMP faces another class action, this time from its customers, who are hoping to claw back hundreds of millions of dollars lost after their super funds were allegedly eroded by fees (30 May 2019).  More... 

Accountants seek voice in retirement advice provision
Accountants have sought a place at the table when the Government initiates a review of the retirement income system, suggesting an essential element is proving access to affordable financial advice (30 May 2019).  More... 

ASIC chooses industry fund default
The Australian Securities and Investments Commission (ASIC) has chosen Australia’s largest industry superannuation fund, AustralianSuper as its default fund for ASIC employees (28 May 2019).  More... 

ASIC employee default superannuation fund
From 1 July 2019, ASIC will employ people under the ASIC Act instead of the Public Service Act, following legislation passed by Parliament on 17 September 2018. ASIC will review its default fund arrangements every four years (27 May 2019 ).  More... 

Emboldened regulator to hit banker pay
APRA will soon be handing down new prudential standards around remuneration following the damning results of an inquiry into 36 of Australia’s financial institutions (24 May 2019 ).  More... 

AFCA to strengthen leadership team
Chief Ombudsman and CEO David Locke will appoint a Deputy Chief Ombudsman and General Counsel to support AFCA through its rapid growth and the expansion of its jurisdiction on 1 July 2019, when it will start accepting complaints dating back to 2008 (22 May 2019).  More...

AFCA strengthens team
The Australian Financial Complaints Authority (AFCA) has announced it will be recruiting a new deputy chief ombudsman and general counsel to support AFCA through its rapid growth and the expansion of its jurisdiction (23 May 2019).  More...  

Former Sydney financial adviser banned for five years for disregarding director duties
ASIC has disqualified Mr Daniel McSweeny of Zetland, NSW from managing companies for the maximum period of five years following his involvement in 14 failed (22 May 2019).  More... 

APRA puts banks, insurers and super funds on notice, considers extra capital requirements
The banking regulator has warned it may hit several financial institutions with additional capital requirements, after self-assessments conducted by banks, insurers and superannuation trustees found "material weaknesses" in governance and risk management ( 22 May 2019).  More... 

IOOF confident on APRA deadline
IOOF Holdings has declared it is confident it can meet the Australian Prudential Regulation Authority’s (APRA’s) deadline on meeting the licence conditions on its superannuation businesses (23 May 2019 ).  More... 

APRA issues directions to companies within the IOOF group for failing to comply with licence conditions
The APRA has issued directions to companies within the IOOF group, using for the first time the broader directions powers under the Superannuation Industry (Supervision) Act 1993 (SIS Act) that were granted by parliament in April 2019 (22 May 2019).  More... 

Financial industry must be inclusive: ASIC
ASIC chair James Shipton called for financial institutions to make the industry more inclusive to all parts of the community, as international financial regulators reported facing many of the same challenges as the Australian watchdog ( 22 May 2019).  More... 

New research highlights need for Govt agency to develop an online tool to compare super funds
A high level of confusion among members of poorly performing super funds points to the urgent need for a Government-sanctioned online tool to help Australians make more informed choices about their super savings, the Australian Institute of Superannuation Trustees said (21 May 2019).  More... 

ASIC accounts for financial complaints
The Australian Securities and Investments Commission (ASIC) has launched a consultation program on new standards to apply to financial firms handling complaints from consumers and small business. Note: ASIC sought public input on the consultation documents, with the deadline for comments 9 August (20 May 2019).  More... 

New super regulation to power ‘cultural shift’
ASIC’s new role in monitoring conduct in superannuation funds will drive a ‘cultural shift’, while it drives its other strategies for reform of the finance sector, ASIC commissioners have said in a panel (20 May 2019).  More... 

In practice and courts

APRA superannuation statistics - March 2019
APRA releases superannuation statistics for March 2019, on 28 May 2019.  More... 

AFCA consults on rule changes to identify financial firms in published determinations
AFCA has drafted changes to Rule A.14.5 that will enable us to identify financial firms in published determinations. This will apply to determinations issued after the changes take effect, subject to the changes being approved by ASIC. It is anticipated that the Rules will be released after 1 July 2019. Submissions close on 20 June 2019.  More... 

Exposure draft ED 289: Annual Improvements to Australian Accounting Standards 2018–2020
ED 289 proposes to amend AASB 1 First-time Adoption of Australian Accounting Standards, AASB 9 Financial Instruments, AASB 16 Leases and AASB 141 Agriculture. Annual improvements are limited to changes that either clarify the wording in the Standard or correct relatively minor unintended consequences, oversights or conflicts between requirements in the Standards. Submit your comments to the AASB by 31 July 2019 via the AASB website here (24 May 2019). 

APRA: Self-assessments of governance, accountability and culture: information paper
APRA has released this report analysing the self-assessments carried out by 36 of the country’s largest banks, insurers and superannuation licensees, in response to the final report of the Prudential Inquiry into Commonwealth Bank of Australia (CBA) (22 May 2019).  More... 

ASFA reminder: Recovering your unclaimed money
From the 27th June 2019 applications for unclaimed monies under s254 of the Bankruptcy Act can be made directly to Australian Financial Security Authority (AFSA) replacing the current Court application process. An application form and further information about the new process will be published closer to the commencement date.  More... 

ISA submissions
ISA submission on proposed revisions to Prudential Standard SPS 515 - 29 May 2019.  More...

Gazette - Superannuation Industry (Supervision) Act 1993

29/05/2019
Notice of Disqualification – Kylie Parkes

28/05/2019
Notice of Disqualification - Karim Hwalla; Paul McGarry; Sandra McGarry

23/05/2019
Notice of Disqualification - Cameron Maitland; Charles Davis

20/05/2019
Notice of Disqualification - William Coleman; Anne Kehoe; Samantha McMaster

Cases

Wigmans v AMP Ltd; Fernbrook (Aust) Investments Pty Ltd v AMP; Wileypark Pty Ltd v AMP Ltd; Georgiou v AMP Ltd; Komlotex Pty Ltd v AMP Ltd [2019] NSWSC 603
REPRESENTATIVE PROCEEDING – CIVIL PROCEDURE – multiplicity of proceedings – whether commencement of subsequent proceedings an abuse of process – application of case management principles – consideration of relevant factors to determine what is in best interest of overall group members. The commencement of the competing representative proceedings followed disclosures made during evidence given by AMP executives at the Royal Commission into Misconduct in the Banking, Superannuation and  Financial Services  Industry (Royal Commission) on 16 and 17 April 2018, after which AMP’s share price fell sharply.

Hayter v Hyde [2019] FCCA 1396
INDUSTRIAL LAW – Small claims – whether applicant entitled to instalments of  superannuation  while on workcare – entitlement to payment under Level B6 classification of Hair and Beauty Award (2010) – relief granted.

Bluescope Steel (AIS) Pty Ltd v Australian Workers' Union [2019] FCAFC 84
INDUSTRIAL LAW – appeal – whether failure to comply with s 50 of the Fair Work Act 2009 (Cth) and Item 15 of Sch 16 to the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009 (Cth)
SUPERANNUATION – history and purpose of superannuation regime – whether the Superannuation Guarantee (Administration) Act 1992 (Cth) and the Superannuation Guarantee Charge Act 1992 (Cth) impose a binding legal obligation to pay superannuation – proper construction of s 6(1) of the Superannuation Guarantee (Administration) Act 1992 (Cth) – construction of “earnings in respect of ordinary hours of work” – appeal allowed

Legislation

Commonwealth

Regulation

Governor-General Superannuation Age Factors (Division 293 Tax Law) Determination 2019 (No. 1)
31/05/2019 - This instrument prescribes the age factors to be used to calculate the pension payable under the Governor-General Act 1974 where a member of the Governors-General Pension Scheme elects to offset their Division 293 tax liability from their pension.

Superannuation (PSS) Maximum Benefits (2019-2020) Determination 2019
31/05/2019 - This determination sets new maximum benefits for the Public Sector Superannuation (PSS) scheme to apply for the financial year starting on 1 July 2019.

Superannuation (PSS) Productivity Contribution (2019-2020) Determination 2019
31/05/2019 - This determination sets new productivity contribution rates for the Public Sector Superannuation (PSS) scheme to apply for the financial year beginning on 1 July 2019.

Victoria

Statutory Rules – 24 May 2019
State Superannuation (Revised Scheme Medical Classifications) Regulations 2019 33/2019

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. 

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