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What's News in Superannuation, Funds Management & Financial Services? – 8 May 2018

08 May 2018

7 min read

#Superannuation, Funds Management & Financial Services

What's News in Superannuation, Funds Management & Financial Services? – 8 May 2018

In the media

Government response to the Senate White Collar Crime Report
TREASURY - 04 May 2018 - The Turnbull Government has today announced its formal response to the Senate Inquiry into White Collar Crime. The Inquiry was established by the Government in 2015 to consider the inconsistencies and inadequacies of current criminal, civil and administrative penalties for corporate and financial misconduct or white-collar crime. More...

Treasury confirms status of AFCA and SCT
MEDIA – 03 May 2018 - The Federal Government has confirmed that the Superannuation Complaints Tribunal (SCT) will continue to operate beyond the commencement date of the new Australian Financial Complaints Authority (AFCA). More...

AFCA receives government authorisation
MEDIA – 03 May 2018 - The Australian Financial Complaints Authority has been authorised by the government, with financial firms and superannuation trustees given until 21 September 2018 to sign up. ASIC will oversee the operation of the new 'one-stop-shop' dispute resolution body and receive reports including about systemic issues and serious contraventions by financial firms.  More...  (ASIC) More... (Govt statement) More...

ASFA cautions O’Dwyer on CIPRs
MEDIA – 01 May 2018 - Superannuation fund trustees will need a “safe harbour” defence if they are to be empowered to ‘nudge’ members into comprehensive income products in retirement (CIPRs), according to the Association of Superannuation Funds of Australia (ASFA).  More...

Government appoints inaugural Australian Financial Complaints Authority board members
TREASURY - 01 May 2018 - Earlier this year, the Minister for Revenue and Financial Services, the Hon Kelly O’Dwyer MP announced the appointment of the Hon Helen Coonan as Independent Chair of the Australian Financial Complaints Authority (AFCA). “I am delighted to today announce four further appointments to the AFCA board.  More...

Misconduct may bring harsh penalties, commission hears
MEDIA – 30 April 2018 - AMP, Westpac, NAB, Commonwealth Bank and other financial advice groups may face steep civil and criminal penalties for poor conduct and corporate deceit. Their actions have breached various sections of the Corporations Act, Counsel Assisting Rowena Orr told the royal commission on financial services misconduct.  More...

Royal commission turns attention to SMEs
MEDIA – 30 April 2018 - The royal commission on financial services misconduct will focus on SMEs when its third round of public hearings starts in Melbourne next month. More information on topics will be released closer to the hearing, which begins on 21 May. The second round, which focused on financial advice, finished last Friday. More...

Likely criminal charges mount as hearings end
MEDIA – 30 April 2018 - Two weeks of royal commission hearings into the financial advice sector concluded on Friday with a lengthy closing statement that implicated nearly every institution that gave evidence.  More... 

Jeremy Cooper joins SMSF Association Public Policy Committee
SMSF Association - 30 April 2018 - The appointment of Jeremy Cooper, the Chairman of Retirement Income at Challenger Limited, to the SMSF Association’s Public Policy Committee is testimony to our commitment to have the right policy settings for retirement income, superannuation and financial services, says CEO John Maroney. More...

Decision to expand SMSFs to six members gets tick of approval
SMSF Association – 27 April 2018 - The Federal Government’s decision to expand the number of members allowed in an SMSF from four to six and to include SMSFs in the Superstream digital rollover process has been welcomed by the SMSF Association. “Expanding the definition of an SMSF from a fund with a maximum of four to six members will provide greater flexibility in how SMSFs can be structured. More...

Greater flexibility for self-managed super funds
TREASURY - 27 April 2018 - The Turnbull Government is supporting Australians who want to manage their own superannuation affairs by expanding access to self-managed superannuation funds (SMSFs), and making it easier to roll existing superannuation funds into a self-managed fund.  More...

Most wanted compulsory insurance code
MEDIA – 26 April 2018 - Adherence to the Insurance inside Superannuation code of conduct should have been made compulsory, according to a majority of superannuation fund trustees and executives. More...

Australian regulator under fire over banking misconduct
MEDIA – 24 April 2018 - Australia’s corporate watchdog is “litigation shy” and failed to aggressively pursue banking misconduct, the former competition regulator chairman said on Tuesday, as barristers continued to grill executives at a major inquiry into the financial sector. More...

ACCC boss backs massive fines for banks
MEDIA – 23 April 2018 - ACCC Chairman, Rod Sims, is talking penalties again in the context of investigating competition in the financial system, arguing for penalties in hundreds of millions of dollars. The head of the consumer watchdog believes penalties of hundreds of millions of dollars for financial misconduct would prevent banks seeing the fines as a cost of doing business.  More...

Privacy watchdog OAIC pulls up data breaches
MEDIA – 23 April 2018 - The top five sectors that notified the OAIC of eligible data breaches included health service providers (24 per cent of notifications), legal, accounting and management services (16 per cent), finance (13 per cent), private education (10 per cent), and charities (6 per cent).  More...

In practice and courts

Prudential Inquiry into the Commonwealth Bank of Australia: final report
Australian Prudential Regulation Authority (APRA): 01 May 2018
This report is comprehensive and contains a large number of findings and recommendations. Its overarching conclusion is that "CBA’s continued financial success dulled the senses of the institution," particularly in relation to the management of non-financial risks.  More...

New APRA Publications
26 April 2018: APRA has released APRA Insight Issue 1 2018

APRA Response to Submissions - Counterparty credit risk for ADIs - April 2018
Letter to all authorised deposit-taking institutions, Monday, 23 April 2018. More...

AIST Policy News - 02 May 2018
All steam ahead for AFCA; APRA puts spotlight on operational due diligence and industry initiatives; APRA highlights accelerating cyber security risk; APRA adjusts prudential standards on auditing responsibilities; Changes announced for SMSF sector. More...

Cases

Williams v IS Industry Fund Pty Ltd [2018] FCA 529
SUPERANNUATION – appeal against the Superannuation Complaints Tribunal – whether there was an ‘interdependent’ relationship – whether there was jurisdictional error – no such error – appeal dismissed.
Superannuation (Resolution of Complaints) Act 1993 (Cth) ss.37(6), 46; Superannuation Industry (Supervision) Act 1993 (Cth) ss.10, 10A; Superannuation Industry (Supervision) Regulations 1994 (Cth) reg 1.04AAAA(1).

Bolton and Australian Securities and Investments Commission [2018] AATA 976
CORPORATIONS LAW – ASIC disqualification order – power to disqualify – whether any breach of s.206A a relevant consideration for the purposes of s 206F – extension of disqualification order possible during proceedings – Tribunal may have regard to whether an applicant has acted in contravention of s.206A of the Corporations Act in the period following being disqualified from managing corporations under s.206F as a step in making an administrative decision;
PRACTICE AND PROCEDURE – AAT Act 1975 allows Tribunal to take into account conduct and material up to date of decision – Shi v Migration Agents’ Registration Authority applicable – s.206F of Corporations Act 2001 does not limit conduct to which decision maker may have regard;
EVIDENCE – admissibility of evidence given in proceedings in the Tribunal in relation to disqualification admissible in criminal proceedings – protection against self-incrimination – contempt of court only possible where there would be interference with due administration of law- contravention of a financial services civil penalty provision.

Legislation

Commonwealth

Treasury Laws Amendment (Putting Consumers First—Establishment of the Australian Financial Complaints Authority) Regulations 2018
24/04/2018 - This instrument makes consequential amendments to seven regulations as a result of the Treasury Laws Amendment (Putting Consumers First—Establishment of the Australian Financial Complaints Authority) Act 2018.  

Government response to the Senate White Collar Crime Report
TREASURY - 04 May 2018 - The Turnbull Government has announced its formal response to the Senate Inquiry into White Collar Crime.

Contacts:

Melbourne

Chris Lovell, Chairman
T: +61 3 9321 9832
E: chris.lovell@holdingredlich.com

Paul Faure, Partner
T: 61 3 9321 9904
E: paul.faure@holdingredlich.com

Bill Glover, Partner 
T: 61 3 9321 9844
E: bill.glover@holdingredlich.com


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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