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Inside track: Superannuation, Funds Management & Financial Services

06 April 2021

#Superannuation, Funds Management & Financial Services

Inside track: Superannuation, Funds Management & Financial Services

In the media

Mounting criticism of super legislation as deadline draws near
AIST – 1 April 2021 – the Federal Government’s changes to superannuation are due to take effect on July 1 this year. This week, the employer organisation the Ai Group called for the bill to be scrapped. AIST also believes the Government should start over.  More...

Increases to super contribution caps announced
MEDIA – 1 April 2021 – the Australian Taxation Office has confirmed increases to concessional superannuation contributions from $25,000 to $27,500, as well as changes to non-concessional contributions and the transfer balance cap.  More...

Most retirees do not underspend or bequeath super: ASFA
MEDIA – 31 March 2021 – around 80 per cent of people aged 60 who died between 2014 and 2018 had no superannuation in the period of up to four years before their death, according to research.  More...

Delaying stapling will weaken YFYS legislation: Super consumers
MEDIA – 30 March 2021 – the advocacy group believes stapling should be extended to all superannuation investment options otherwise trustees will have no incentive to lift performance.  More...

ASIC says the levy is mechanical, Hume says ASIC has discretion
MEDIA – 29 March 2021 – the ASIC insists the industry funding model which drives the adviser levy is mechanical and it has little control over the outcome, but the Minister for Superannuation, Financial Services and Financial Technology, Senator Jane Hume says the regulator does have discretion.  More...

Presenting advice fees eight ways looks ridiculous to clients
MEDIA – 29 March 2021 – the corporate regulator’s advice fee disclosure requirements is the biggest issue for advisers at the moment as having to present fees to clients eight different ways from a client’s perspective looks ridiculous, according to an adviser.  More...

AFCA publishes details of non-compliant members
AFCA – 26 March 2021 – the Australian Financial Complaints Authority has published the details of 34 financial firms who have failed to pay their AFCA membership levy and/or other fees.  More...

AFCA releases its submission to Independent Review
AFCA – 26 March 2021 – the Australian Financial Complaints Authority (AFCA) has released its submission to the scheduled Independent Review of its first two years of operations.  More...

APRA completes first phase of its Superannuation Data Transformation
APRA – 25 March 2021 – the APRA has released the response paper and final reporting standards for Phase 1 of its multi-year Superannuation Data Transformation, which aims to support improved member outcomes by increasing the breadth, depth and quality of APRA’s superannuation data collection. The Response Paper and finalised reporting standards are available here.
APRA: The completion of Phase 1 would be a major step in APRA’s efforts to lift industry standards and weed out underperformers.  More...

ASIC releases advice fee consent and lack of independence disclosure legislative instruments
ASIC – 25 March 2021 – ASIC has made three legislative instruments that deal with advice fee consents and independence disclosure following Royal Assent of the Financial Sector Reform (Hayne Royal Commission Response No.2) Act 2021 earlier this month.  More...

APRA denies super benchmarks will shape investment
MEDIA – 25 March 2021 – the prudential regulator has rejected suggestions that the Your Future, Your Super reforms will sway how super funds invest members’ savings. From July next year, APRA will begin to conduct benchmarking tests on the net investment performance of MySuper products.  More...

ASIC clarifies the reverse evidential burden on super
MEDIA – 25 March 2021 - the Australian Securities and Investments Commission has made clear how it sees the controversial reversal of the evidential burden of proof playing out around the proposed new best financial interests test for superannuation funds.  More...

APRA backs reversing legal burden of proof in super
MEDIA – 24 March 2021 – the APRA has backed a controversial key element of the Government’s Your Future, Your Super legislation which reverses the legal burden of proof with respect to superannuation funds within a best financial interests duty.  More...

In practice and courts

ASIC regulatory updates
Provides relief from the requirement to hold an AFSL for AEMO and participants of AEMO in relation to ex ante rights on AEMO's short term trading market.
23/03/2021 ASIC Corporations (Disclosure of Lack of Independence) Instrument 2021/125
The disclosure of lack of independence that an Australian Financial Services licensee or authorised representative must give clients where they would breach s923A of the Corporations Act if they used words such as 'independence', 'impartial', or 'unbiased'.

APRA draft taxonomy artefacts to assist superannuation entities prepare for APRA Connect
On 25 March 2021, APRA released the response paper and 10 final reporting standards for the first phase of its multi-year Superannuation Data Transformation. The Response Paper and finalised reporting standards are available at here.
These new collections will be reported through APRA Connect.
Final versions of these documents will be available before the external test environment is released to entities in June 2021. The draft artefacts include the data dictionary, validations, reporting taxonomy and XSD (to validate files). 

Cases

Cradock v United Super Pty Ltd as Trustee of the Construction and Building Unions Superannuation Fund [2021] FCA 305
PRACTICE AND PROCEDURE – application for an extension of time to commence an appeal from a decision of the Australian Financial Complaints Authority (AFCA) – AFCA affirming a decision of a superannuation trustee in relation to the distribution of death benefits – s 1055B and s 1057A of the Corporations Act 2001 (Cth) providing that AFCA’s decision comes into immediate effect unless AFCA provides otherwise or unless the Federal Court of Australia stays the decision appealed from – no application for a stay of AFCA’s decision – decision appealed from implemented by trustee before the time to commence an appeal expired – recipient of benefit of the trustee’s decision receiving payment and expending funds – recipient asserting prejudice in the nature of a risk that the law might operate to require that she disgorge the payment – unsatisfactory explanation for delay in commencing appeal – public interest in proper construction of the provisions of the Corporations Act 2001 (Cth) conferring powers of remittal – consideration of whether there could or should be remittal for reconsideration of a decision that has been implemented – extension of time granted on limited grounds.

In the matter of M & J Super Fund Pty Limited (in liquidation) [2021] NSWSC 279
CORPORATIONS – winding up – where entity in liquidation/receivership is a corporate trustee – remuneration of liquidator – remuneration of receiver and manager – reasonableness of remuneration – whether applicant as liquidator/ receiver has established entitlement to and reasonableness of remuneration – remuneration and costs to be paid out of the assets of the trust to which the applicant has been appointed
The Company was registered on 13 June 2007 with the sole purpose of acting as a corporate trustee of the Fund, which is a self-managed superannuation fund governed by a Superannuation Trust Deed dated 15 May 1992 (the Trust Deed).

Legislation

Commonwealth

Bills

Treasury Laws Amendment (Reuniting More Superannuation) Bill 2020
Assent Act no: 24 Year: 2021 22 March 2021
Amends the: Retirement Savings Accounts Act 1997, Superannuation Industry (Supervision) Act 1993 and Superannuation (Unclaimed Money and Lost Members) Act 1999 to: Facilitate the closure of eligible rollover funds by 30 June 2021; and enable the Commissioner of Taxation to reunite amounts he or she receives from eligible rollover funds with a member's active account; and Income Tax Assessment Act 1997 and Taxation Administration Act 1953 to make consequential amendments.

Regulations

Superannuation Data and Payment Standards (Release Authorities, and SMSF Rollovers) Amendment 2021
29/03/2021 - This instrument amends the Superannuation Data and Payment Standards 2012 to reflect amendments that take effect on 31 March 2021 and repeals Schedule 1, which provides transitional requirements entities were required to meet during the historical transition-in periods.

ASIC Corporations (Short Term Trading Market) Instrument 2021/218
25/03/2021 - This instrument provides relief from the requirement to hold an AFSL for AEMO and participants of AEMO in relation to ex ante rights on AEMO's short term trading market.

ASIC Corporations (Disclosure of Lack of Independence) Instrument 2021/125
23/03/2021 - This instrument is prescribing lack of independence disclosure in Financial Services Guide.

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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