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What's News in Superannuation, Funds Management & Financial Services? – 1 August 2018

01 August 2018

#Superannuation, Funds Management & Financial Services

What's News in Superannuation, Funds Management & Financial Services? – 1 August 2018

In the media

Industry funds refuse to fund planner complaints
Industry superannuation funds should not be required to cross-subsidise financial planners and others who appear before the newly-constituted Australian Financial Complaints Authority (AFCA), according to the Australian Institute of Superannuation Trustees (AIST) (26 July 2018).  More...

Industry funding for new dispute body must avoid cross subsidisation
Funding for the newly-established Australian Financial Complaints Authority (AFCA) must avoid cross subsidisation by stakeholders, including super funds, The Australian Institute of Superannuation Trustees (AIST) has warned (26 July 2018).  More...

RC paper notes ‘unspecified’ industry fund expenses
A Royal Commission background paper has noted the ‘relatively high proportion’ of industry fund expenses are not specifically detailed in publicly available data from the Australian Prudential Regulation Authority (APRA) (25 July 2018).  More...

External report on fees and costs disclosure welcomed by ASIC
ASIC has released the external report into Regulatory Guide 97 Fees and costs disclosure (RG 97) commissioned in November 2017. The report, prepared by expert Darren McShane, concludes changes to the disclosure regime would be advantageous  (24 July 2018).  More...

FSC welcomes release of external report on RG97
The Financial Services Council (FSC) welcomes the release by ASIC of an external report in relation to  fees and costs disclosure in the superannuation and funds management industry (24 July 2018).  More...

Industry Super welcomes complex and detailed expert review of RG97
Darren McShane’s detailed review of fees and costs disclosure, and ASIC’s regulatory guidance, is a thorough and considered study of a complex area, says Industry Super Australia (24 July 2018).  More...

Royal commission reveals fifth round topics
The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry has announced the topics for its fifth round of public hearings, which will focus on superannuation (23 July 2018).  More...

Super insurance deadline ‘unachievable’: APR
APRA has labelled the government’s start date for changes to default super arrangements as “unachievable”, backing calls for an additional year. Appearing before the Senate Economics Legislation Committee, APRA deputy chair Helen Rowell said the current start date for changes to insurance in default super will have “unintended consequences” (23 July 2018).  More...

Super industry-led governance body needed
The Governance Institute of Australia has pushed back against the Productivity Commission’s suggestion to impose extra regulation around the board governance of superannuation funds, calling instead for the creation of an industry-led body to develop such guidance (19 July 2018).  More...

Published – articles, papers, reports

Review of ASIC Regulatory Guide 97: Disclosing fees and costs in PDSs and periodic statements
Darren McShane; Australian Securities and Investments Commission: 24 July 2018
This report has been prepared by Darren McShane, at the request of the ASIC, following its announcement of an external expert review of Regulatory Guide 97, Disclosing fees and costs in PDSs and periodic statements (RG 97).  More...

Consumer interactions with the superannuation industry: background paper 22
Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry: 24 July 2018
This paper considers the superannuation system from the consumer (or member) perspective, discussing how a consumer enters the superannuation market, interacts with superannuation fund trustees and accesses their superannuation at retirement.  More...

Overview of key regulatory reforms in superannuation: background paper 23
Department of the Treasury (Australia); Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry: 24 July 2018
This paper provides a summary of major financial system reforms over the past twenty-five years, focussing primarily on regulatory reforms affecting superannuation funds.  More...

In practice and courts

Treasury Laws Amendment (Protecting Your Superannuation Package) Bill 2018 [Provisions]
Status: Submissions Closed. Date Referred: 21 June 2018 Reporting Date: 13 August 2018 

APRA: Opening Statement - Senate Economics Legislation Committee
Helen Rowell Deputy Chairman - Appearance before Senate Economics Legislation Committee - Public hearing on Treasury Laws Amendment (Protecting Your Superannuation Package) Bill 2018 (20 July 2018).  More...

Second tranche of the Treasury Laws Amendment (Corporate Collective Investment Vehicle) Bill 2018 (CCIV Bill): Consultation
The second tranche of the CCIV Bill covers: External administration of a CCIV in a winding up situation; The application of the Chapter 7 financial services regime to CCIVs and The liability of the corporate director of a CCIV for contraventions of the law by the CCIV. Stakeholders are invited to lodge submissions online via the Treasury website. Submissions conclude on 10 August (19 July 2018).

Draft amendments to Chapters 4 and 15 of the AML/CTF Rules
These amendments exempt reporting entities from certain identification requirements in Chapter 4 and Chapter 15 of the AML/CTF Rules, for customers that are ‘custodians’. The definition of ‘custodian’ in new paragraph 4.4.19(1) limits the exemption to corporate custodians, rather than individuals who provide custodial or depository services. The second public consultation period for these amendments closed on 31 July 2018.  More...

APRA: Review of the superannuation prudential framework
The aim of the review is to ensure the prudential and reporting standards, and related guidance, have achieved their objectives and continue to remain fit for purpose. To commence this review, APRA has released the first of a series of consultation papers on aspects of the prudential framework. APRA invites written submissions on all consultation papers by 26 September 2018. Copies of the consultation papers are available on APRA’s website.  More...

Legislation

Commonwealth

Treasury Laws Amendment (Corporate Collective Investment Vehicle) Bill 2018
19/07/2018 – Exposure Draft - The Tranche 2 Exposure Bill provides for further aspects of the regulatory framework for CCIVs, building on the Tranche 1 Exposure Bill that was released for consultation on 13 June 2018. This chapter of the explanatory materials for the Tranche 2 Exposure Bill provides an overview of these further aspects. 

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

Brisbane

Kylie Wilson, Partner
T: 61 7 3135 0514
E: kylie.wilson@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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