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Inside track: Superannuation, Funds Management & Financial Services

06 October 2020

#Superannuation, Funds Management & Financial Services

Inside track: Superannuation, Funds Management & Financial Services

In the media

Are Govt changes making SMSFs more risky?
Increasing the number of people who can be members of a Self-Managed Superannuation Fund (SMSF) risks creating systemic risks, according to University of Sydney Professor of Finance, Susan Thorp (24 September 2020).   More...

ASIC extends COVID-19 relief for certain capital raisings and financial advice
ASIC is extending the temporary relief for capital raisings and financial advice due to the continuing uncertain impacts of COVID-19. ASIC will continue to monitor the appropriateness of these temporary relief measures in light of the impacts of COVID-19 on capital markets and on the demand for financial advice ( 23 September 2020). More...

Trustees reminded that AFCA can make breach referrals to ASIC and APRA
Superannuation funds and others dealing with the AFCA need to remember that matters can be referred to the relevant regulator – either the ASIC or the APRA (22 September 2020).  More...

AFCA moves to handle unfinished SCT business
With the old Superannuation Complaints Tribunal (SCT) due to cease operations on 31 December, the Australian Financial Complaints Authority (AFCA) is proposing to handle any of the Tribunal’s unfinished business  22 September 2020).  More...

ASIC tells fund managers to be ‘true to label’
A recent ASIC surveillance has found that fund managers must do more to ensure their products are ‘true to label’ – that the product name aligns with the underlying assets. ASIC examined the appropriateness of the product labels used by the 37 managed funds and assessed whether the funds were described and promoted in a manner that reflects the underlying assets in terms of risk and liquidity (22 September 2020).  More...

SG amnesty produces $600m
The Association of Superannuation Funds (ASFA) has called the superannuation guarantee (SG) amnesty a success, as $600 million will be placed in the super accounts of nearly 400,000 Australians (22 September 2020). More...

APRA and ACCC sign closer collaboration
The Australian Prudential Regulation Authority (APRA) and the Australian Competition and Consumer Commission (ACCC) have signed an updated Memorandum of Understanding (MoU) designed to foster closer collaboration between the two regulators (21 September 2020).  More...

In practice and courts

Reminder: Rule extended to support COVID-19 early release of superannuation initiative
AUSTRAC has extended the Rule for streamlined customer verification under the COVID-19 early release of superannuation initiative until 31 December 2020. More...

APRA weekly data on the superannuation early release scheme
28 September 2020 - APRA latest industry-level and fund-level data on the temporary early release of superannuation scheme. The Early Release Initiative statistics for applications received between 20 April - 20 September 2020 (28 September 2020).  More....

ATO notices

30/09/2020 Transfer balance cap
From 1 July 2017, there is a cap on the total amount of super that can be transferred into a tax-free retirement account, known as the transfer balance cap.

25/09/2020 Improving flexibility for older Australians
Older members of your super funds are now able to receive spouse contributions and make voluntary super contributions without meeting the work test.

23/09/2020 Legislation introduced to increase membership of SAFs
Legislation has recently been introduced that will increase the membership of SAFs from four to six.

23/09/2020 Membership increase introduced into Parliament
The proposed law to expand the maximum number of SMSF members from four to six was introduced into the Senate on 2 September 2020. It is currently proposed that the law will take effect (start) from the first day of the quarter after it receives royal assent. Funds will be able to have a maximum of six members from this date.

22/09/2020 Transitional compliance approach to non-arm’s length expenditure - clarifying the obligations of SMSF auditors
SMSF auditors do not need to modify their opinion in Part A of the IAR where the compliance approach for non-arm's length expenditure in PCG 2020/5 applies.

22/09/2020 Extending super choice
From 1 January 2021, more employees will have the right to choose their superannuation fund.

AFCA Datacube updated with latest complaint statistics
The Australian Financial Complaints Authority (AFCA) has updated its online comparative reporting tool, the AFCA Datacube, to include information about all financial complaints lodged with it from 1 July 2019 to 30 June 2020 (23 September 2020).  More...

APRA reminder:  superannuation licensees on upcoming legislative obligations
Registrable superannuation entity (RSE) licensees are reminded of two key regulatory requirements - to undertake a Business Performance Review by 31 December 2020, and an outcomes assessment by 28 February 2021. View the letter here

ATO: COVID-19 early release of super
Information about the eligibility and application process for the COVID-19 early release of super scheme until 30 June 2020 for the 2019–20 year and  between 1 July 2020 and 24 September 2020, for the 2020–21.  More...

AFSA: Guidelines for debt agreement administrators
We have made important temporary updates to the certified duties of debt agreement administrators, regarding proposals to vary debt agreements. These changes are currently in affect for six months (until 30 September 2020). For more information see here.  For updated general guidelines for practitioners, see here

AFCA current matters
Mayfair group of companies (updated September 2020).

Legislation

Commonwealth

Act Compilation

Superannuation Guarantee (Administration) Act 1992
22/09/2020 - Act No. 111 of 1992

Regulation

Accounting Standard AASB 2020-8 Amendments to Australian Accounting Standards – Interest Rate Benchmark Reform – Phase 2
29/09/2020 - This instrument amends Accounting Standards AASB 4, AASB 7, AASB 9, AASB 16 and AASB139 to address the effect of interest rate benchmark reforms in accounting for financial instruments.

ASIC Corporations (Amendment) Instrument 2020/853
23/09/2020 - This instrument amends the ASIC Corporations (Disclosure of Fees and Costs) Instrument 2019/1070 to clarify the intended operation of an aspect of the fees and costs disclosure regime for Product Disclosure Statements (PDSs) that apply to superannuation products.

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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