Artboard 1Icons/Ionic/Social/social-pinterest

Inside track: Superannuation, Funds Management & Financial Services

08 October 2019

#Superannuation, Funds Management & Financial Services

Inside track: Superannuation, Funds Management & Financial Services

In the media

AIST welcomes recognition of the vital role of financial counsellors
The Australian Institute of Superannuation Trustees (AIST) welcomes release of a review of the funding of financial counselling services, which recognises the valuable service of the valuable service provided by financial counsellors all around Australia (04 October 2019).  More... 

ASIC warns AFS licensees to meet financial reporting obligations on time
ASIC is reminding all Australian Financial Services (AFS) licensees to lodge their annual financial statements and auditor reports by the due as required under the Corporations Act 2001 (04 October 2019).  More... 

Treasury warned super fee cap can be ‘gamed’
The Federal Government has been warned that some of its changes to superannuation legislation, including the fee cap on low balances remain open to being ‘gamed’ by people with high account balances (01 October 2019).  More... 

Finance sector to combat modern slavery
The global finance sector has launched an initiative to eliminate modern slavery and help victims of the practice regain their financial independence. It outlines several areas where the finance sector can combat slavery and human trafficking, including increasing funding for investigations into slavery and developing better indicators of trafficking-related money laundering (30 September 2019).  More... 

AUSTRAC warns fintechs, pubs to 'harden their systems'
Financial intelligence agency AUSTRAC is warning pubs and clubs, money remitters and fintechs offering payments services to “harden” their technology systems to help protect against organised crime, or risk being hit with public enforcement actions as the agency is emboldened after the Hayne royal commission (30 September 2019).   More... 

APRA proposes directions to integrate new accounting standard into insurers' prudential framework
The new consultation outlines APRA’s proposed directions for integrating AASB 17 into the prudential capital and reporting frameworks for insurers (27 September 2019).  More... 

Retirement income review an opportunity to reform Australia’s compulsory savings system for the better ahead of promised increase
Industry Super Australia (ISA) welcomes the Federal Government’s commitment to maximise efficiencies in Australia’s compulsory superannuation system, ahead of the legislated increase in the super guarantee (27 September 2019).  More... 

Members’ best interests is at the heart of consumer advocacy on superannuation
The peak representative body for the profit-to-member superannuation sector, the Australian Institute of Superannuation Trustees (AIST) said it anticipated working closely with the newly-formed Choice body, Super Consumers Australia, to ensure consumer interests were protected in superannuation (25 September 2019).   More... 

APRA fails to disqualify IOOF executives, in case full of 'systematic weakness'
The financial regulator suffers a major defeat in the Federal Court, failing to disqualify five executives from IOOF, in the first case it has prosecuted this decade (20 September 2019).  More... 

Regulators suffer second defeat after IOOF wins court case
Federal Court judge Jayne Jagot has dismissed APRA’s efforts to ban former IOOF CEO Chris Kelaher and other executives from the group. In her judgement, Ms Jagot said the prudential regulator simply did not have enough proof that the IOOF directors contravened the Superannuation Industry Supervision Act (SIS Act) by failing to act in the best interests of members (20 September 2019). More... 

Super trustees reject accusations of ‘misleading’ communications
Superannuation trustees have rejected accusations from consumer group CHOICE that they misled members over insurance changes. CHOICE said trustees needed to simplify their messages and include more relevant information, such as a premium cost relevant to the individual, and their rights in the event of cancellation (20 September 2019).  More... 

‘Get better or get out’: APRA warns super funds
APRA chairman says the prudential regulator will be having some “difficult discussions” with superannuation trustees that fail to produce positive outcomes for their members. The new statutory powers accompanied by a new prudential standard on member outcomes, will require trustees to perform an annual business performance review to assess whether they are delivering sound, value-for-money outcomes for the members they are serving (20 September 2019).  More... 

In practice and courts 

Director and officer oversight of non‑financial risk report
ASIC Corporate Governance Taskforce; ASIC:  02 October 2019
This report sets out the Taskforce's observations on director and officer oversight of non‑financial risk. The seven financial services institutions selected for this review are those that many Australians are exposed to, through their personal and business banking, superannuation or insurance, or as shareholders.  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...  

Consultation begins on new ASIC powers
Consultation closes on 09 October 2019
The draft legislation strengthens ASIC's licensing powers by increasing the standards required of an Australian Financial Services Licence holder, at both the time of application and on an ongoing basis, and extends ASIC's powers so it may ban a person from performing functions in a financial services or credit business. For more information, click here.

Reminder: AFCA naming and shaming from October
The Australian Financial Complaints Authority (AFCA) has confirmed a starting date for it to name firms in its determinations, with the watchdog to start exposing perpetrators from 1 October. The rules which were approved by ASIC in August will allow AFCA to publish the names of financial firms in all determinations.  More...

ASIC consultation: foreign financial services providers relief proposals
ASIC has extended to 31 March 2020 licensing relief for foreign financial services providers (FFSPs) to allow them to provide certain financial services to Australian wholesale clients without needing to hold an Australian financial services licence.   More... 

ASFA Submissions
30 September 2019 - Submission to The Treasury - Miscellaneous amendments to Treasury portfolio laws 2019 (Superannuation).   More...

FSC Submissions
04 October 2019 - FSC Submission - Treasury portfolio technical amendments (Superannuation)

Gazette - Superannuation Industry (Supervision) Act 1993

04/10/2019
Notice of Disqualification - Luke Saunders

01/10/2019
Notice of Disqualification – Chhay So

30/09/2019
Notice of Disqualification - Robert Dicks Kolofale

27/09/2019
Notice of Disqualification - Paul Juby; Kseniya Juby

Cases

Australian Prudential Regulation Authority v Kelaher [2019] FCA 1521
SUPERANNUATION – whether two entities and their directors contravened s 52 and s 52A of the Superannuation Industry (Supervision) Act 1993 (Cth) (SIS Act) – trustee’s duties – duties of trustee directors – alleged contraventions of statutory covenants – care, skill and diligence – best interests of the beneficiaries – conflicts of interest – whether the governing rules of the trusts exclude liability for the alleged contraventions – prudent person and prudent superannuation trustee standards of care – inadequate proof of contraventions – application dismissed.  

Aslami v Board of Trustees of the State Public Sector Superannuation Scheme as Trustee for the QSuper Fund [2019] FCA 1560
SUPERANNUATION – appeal from a judgment of the Superannuation Complaints Tribunal (Tribunal) to affirm a decision of the Board of Trustees of the State Public Sector Superannuation Scheme for the QSuper Superannuation Fund to decline the appellant’s claim for a total and permanent disablement benefit – construction of the phrase “education, training or experience” – whether the Tribunal adopted the correct approach – whether the Tribunal applied the correct test – appeal dismissed
Administrative Appeals Tribunal Act 1975 (Cth); Superannuation (Resolution of Complaints) Act 1993 (Cth)

Legislation

Commonwealth

High Court of Australia Regulations 2019
25/09/2019 - These regulations repeal the High Court of Australia Regulations 2000 which sunset on 1 October 2019 and remake them with an increase in the prescribed amount from $1,000,000 to $2,000,000. The effect of this change will be that Ministerial approval is required before the High Court may enter into a contract for any amount above $2,000,000.
Superannuation Amendment (PSS Trust Deed) Instrument 2019
25/09/2019 - The instrument amends the Public Sector Superannuation Trust Deed and Rules to standardise and modernise provisions relating to eligibility for reversionary superannuation benefits payable to or in respect of children. 

Bills

Treasury Laws Amendment (Putting Members' Interests First) Act 2019
Assent  Act no: 79 Year: 2019 02 October 2019 - The Act  will require insurance in superannuation for new members under 25 and members with low balance accounts to only be offered on an opt-in basis from 1 April 2020, and amendments to the Superannuation (Unclaimed Money and Lost Members) Act 1999

Acts

Treasury Laws Amendment (2018 Superannuation Measures No. 1) Act 2019
03/10/2019 - Act No. 78 of 2019

Queensland

Subordinate legislation as made
No 193 Superannuation (State Public Sector) Amendment Notice (No. 1) 2019
23 September 2019

No 194 Public Trustee (Interest Rate) Amendment Regulation 2019
27 September 2019

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
Chris Lovell

Chris Lovell

Chairman

Melbourne

More info
Paul Faure

Paul Faure

Partner

Melbourne

More info
Bill Glover

Bill Glover

Partner

Melbourne

More info
Kylie Wilson

Kylie Wilson

Partner

Brisbane

More info