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Inside track: Superannuation, Funds Management & Financial Services

08 February 2021

#Superannuation, Funds Management & Financial Services

Inside track: Superannuation, Funds Management & Financial Services

In the media

Parliamentary committee questions adviser jail penalty for record-keeping
MEDIA – 4 February 2021 – A Parliamentary Committee has questioned why financial advisers should face the risk of five years’ jail for record-keeping failures under legislation flowing from the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services due to be debated by the Parliament.  More...

FPA calls for review of unsustainable ASIC levy as the regulator seeks guidance on affordable advice
FPA – 3 February 2021 – The FPA has made six recommendations in its Budget Submission 2021-22 aimed at addressing the rapidly increasing cost of practicing as a financial planner.  More...

Simplify super regulations: Actuaries Institute
MEDIA – 02 February 2021 – The Government needs to simplify the country’s superannuation regulations, review areas where retirees need extra support, and legislate to make the overall retirement income system objective clear, according to the Actuaries Institute.  More...

TBCs and TSBs need attention to reduce super complexity
MEDIA – 2 February 2021 – To reduce complexity in retirement income, the government should remove or simplify the transfer balance cap (TBC) proportional indexation, reduce the number of total superannuation balance (TSB) thresholds, and provide self-managed superannuation fund advisers and administrators access to Australian Taxation Office portals.  More...

Extend reference checking to management and boards says FPA
MEDIA – 01 February 2021 – While the financial advice industry was largely on the path to professionalism and efficiency, background checks when hiring new advisers needs to be more robust, ASIC said. People providing general advice or in management and board positions should be subject to just the same reference checking as financial advisers, according to the FPA.  More...

Risk, exec pay, super performance top APRA’s priorities
MEDIA – 01 February 2021 – APRA has signalled its prime concerns for the year ahead, which include its implementing the new remuneration standard, monitoring risk culture and clamping down on lagging super funds.  More...

APRA releases its policy and supervision priorities for 2021
APRA – 01 February 2021 – The APRA has released its policy and supervision priorities for the coming year. Consistent with APRA’s strategic objectives detailed in its Corporate Plan, a key focus is to further enhance the resilience and crisis readiness of Australia’s financial system.  More...

RSE trustee board composition evolving
MEDIA – 01 February 2021 – In the last six years, independent directors have gone from holding 5.2 per cent of the total board positions at RSE licensees to 10.7 per cent of them as at June 2020, says new APRA data.  More...

New super players appearing before House Economics Committee
MEDIA – 01 February 2021 – New players in the superannuation sector Future Super and Verve Super will be scrutinised, along with Diversa Trustees, at the House of Representatives Standing Committee on Economics public hearing this Wednesday.  More...

SG rise opposite of what govt is doing for businesses: Hume
MEDIA – 29 January 2021 – The superannuation guarantee (SG) is legislated for 1 July but is the opposite of what the government is doing in terms of lowering costs to businesses to employ more people and to encourage wage rises, according to Minister for Superannuation, Financial Services, and the Digital Economy.  More...

Considered design required for timely changes to the super system
FSC – 28 January 2021 – Parliament will very soon have the opportunity to debate the Government’s ‘Your Future, Your Super’ reforms that were announced in the October 2020 Budget.  More...

Australia: Revised prudential standard for insurance in superannuation expected to take effect next 1 Jan
APRA – 27 January 2021 – The Australian Prudential Regulation Authority has said that the revised Prudential Standard, SPS 250 Insurance in Superannuation, is expected to commence from 1 January 2022.  More...

COVID financial hit will follow young and low-income earners to retirement without government intervention
AIST – 27 January 2021 – As is often the case with economic downturns or natural disasters, the cost of the COVID pandemic has been disproportionately borne by those least able to afford it.  More...

In practice and courts

House of Representatives Committees Standing Committee on Economics Superannuation Sector
Upcoming Public Hearings 03 February 2021: Canberra.  More...

ASIC Papers open for public comment

ASIC CP 335: Consumer remediation guidance
ASIC has released a consultation paper on proposed updates to Regulatory Guide 256: Client review and remediation conducted by advice licensees. Consultation Paper 335 Consumer Remediation: Update to RG 256 (CP 335) includes clarification of RG 256’s application to all financial services licensees, credit licensees and superannuation trustees. Submissions on CP 335 are due by 26 February 2021.
ASIC has also released Making it Right: how to run a consumer centred remediation, a resource that offers immediate help to licensees with the day-to-day design and execution of consumer-centred remediations

ASIC Regulatory Documents

ATO Alerts

ASIC Corporations, Superannuation and Credit (Amendment) Instrument 2020/99
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.

APRA reminder: Superannuation licensees on upcoming legislative obligations
Registrable superannuation entity 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.

AIST Submissions
AIST 2021-2022 Pre-Budget Submission to the Minister for Housing and Assistant Treasurer
29 January 2021 – The submission reiterates policy recommendations made in recent years that remain unaddressed, and makes proposals directly related to the interaction between the superannuation system and the COVID-19-induced economic downturn. This should include ensuring that Early Release of Super under the Government’s 2020 initiative is assessed, and fully audited and reviewed.

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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