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

Inside track: Superannuation, Funds Management & Financial Services

07 September 2020

#Superannuation, Funds Management & Financial Services

Inside track: Superannuation, Funds Management & Financial Services

In the media

ASIC commences civil penalty proceedings against Dixon Advisory for alleged conflicts, best interest failures and inappropriate advice
ASIC has commenced proceedings in the Federal Court of Australia against Dixon Advisory and Superannuation Services Limited (Dixon Advisory), a subsidiary of ASX-listed Evans Dixon Limited (Evans Dixon) (4 September 2020).  More...

FSC welcomes calls for technology neutral law and measurers to drive business growth
The FSC welcomes the release of the Senate Select Committee for Financial Technology and Regulatory Technology’s draft report into the sector. Support for these changes will enable financial services businesses to meet the needs of consumers and compliance obligations more efficiently while driving long-term economic growth (2 September 2020).   More...

ASFA: Ballooning business profits support Superannuation Guarantee increase
The ASFA says the National Accounts data released re-enforces the need for the legislated increase in the Superannuation Guarantee (SG) to go ahead. The SG rate is scheduled to increase from its current 9.5% to 10% on 1 July 2021 (2 September 2020).  More...

Early release of super scheme leads to rising age pension costs, analysis reveals
Without replenishing early release amounts total retirement incomes will be significantly lower and the long-term age pension costs borne by taxpayers could be more than twice the present value of the withdrawn early release amounts, the analysis shows (2 September 2020).  More...

APRA canvasses COVID-19 super fund exits
The extended period of the COVID-19 pandemic may hasten the exit of some superannuation funds, according to the Australian Prudential Regulation Authority (APRA) (1 September 2020).  More...

APRA takes next steps to expand its superannuation data collection
The APRA has released the final consultation package for Phase 1 of its project to expand the breadth, depth and consistency of its superannuation data collection. APRA is now seeking feedback from industry ahead of finalising the nine reporting standards linked to Phase 1 early next year. Phase 2 (Depth) will commence shortly thereafter (28 August 2020).  More...

ASIC names operations, risk leads
In announcing the organisational changes, ASIC also released its Corporate Plan for 2020-24. ASIC warned superannuation funds that it will closely monitor the impact of COVID-19 on insurance offerings (31 August 2020).  More...

Handling complaints and paid representatives: ASIC provides financial firms with guidance
ASIC recently published Regulatory Guide 271 Internal Dispute Resolution (RG 271). Among other things, RG 271 clarifies ASIC’s expectations of financial firms in their dealings with paid representatives – including debt-management firms (27 August 2020).  More... 

New law backs choice of fund
A new law is empowering employees to choose their own superannuation fund, lifting restrictions that forced some members into a super fund dictated by their employer, with the Treasury Laws Amendment (Your Superannuation, Your Choice) Bill 2019 passed overnight (26 August 2020).  More...

AIST calls for top-ups for low-income ERS recipients
Government should top up the superannuation balances of Australians who make less than $39,837 a year and genuinely accessed their superannuation under ERS, according to the Australian Institute of Superannuation Trustees (24 August 2020).  More...

In practice and courts

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...

ATO: Proposed Superannuation Guarantee amnesty
The proposed Superannuation Guarantee (SG) Amnesty (the proposed amnesty) and re-introduced the associated legislation into Parliament. Until the proposed amnesty law is enacted by Parliament, ATO will continue to apply the existing law to the SGC statements you lodge.  More...

APRA publishes new frequently asked questions on MySuper Product Heatmap
The APRA has published a new set of frequently asked questions concerning the release of the 2020 MySuper Product Heatmap in December 2020 (21 August 2020).  More...

APRA reminder: superannuation licensees on upcoming legislative obligations
The APRA has written to registrable superannuation entity (RSE) licensees reaffirming its expectations regarding two key regulatory requirements - to undertake a Business Performance Review by 31 December 2020, and an outcomes assessment by 28 February 2021.   More...

ASIC Corporations, Superannuation and Credit (Amendment) Instrument
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.   More...

Legislation

Commonwealth

Regulations

Treasury Laws Amendment (Release of Superannuation on Compassionate Grounds) Regulations (No. 3) 2020
03/09/2020 - This instrument amends the Retirement Savings Accounts Regulations 1997 and Superannuation Industry (Supervision) Regulations 1994 to extend the deadline by which applications must be made for coronavirus related early release from superannuation and retirement savings accounts to 31 December 2020.

ASIC Corporations (Hardship Withdrawals Relief) Instrument 2020/778
27/08/2020 - This instrument provides responsible entities of registered managed investment schemes relief from certain provisions in Chapter 5C of the Corporations Act 2001 to facilitate withdrawals by members suffering hardship while the scheme is frozen.

Bills

Treasury Laws Amendment (Your Superannuation, Your Choice) Bill 2019
Amends the Superannuation Guarantee (Administration) Act 1992 to provide that employees under workplace determinations or enterprise agreements have the right to choose their superannuation fund. Finally passed both Houses 25 August 2020.

Treasury Laws Amendment (2020 Measures No. 2) Bill 2020
Amends the: Income Tax Assessment Act 1997 to amend the hybrid mismatch rules including International Finance Corporation Act 1955 and International Monetary Agreements Act 1947 to establish frameworks under which Australia may enter into agreements with the International Bank for Reconstruction and Development and the International Finance Corporation of the World Bank Group to buy additional shares of their respective capital stocks; and authorise appropriations from the Consolidated Revenue Fund for the purposes of such payments. Senate Message from House of Reps reported 24 August 2020. Consideration of House of Reps message 25 August 2020.

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