In the media

ASIC extends start dates on super reforms
MEDIA – 02 June 2017 - ASIC has prolonged the start dates for key super reforms regarding choice products and portfolio holdings reporting requirements which fall under the Corporations Act.  More...

Banks crackdown to prevent finance sector misconduct
ABA – 09 June 2017 - Bank customers can expect greater protection with new hiring measures agreed by Australia’s banks to crackdown on individuals with a history of misconduct moving from one job to the next undetected.  More...

Sydney advice firm has AFSL cancelled
MEDIA – 09 June 2017 - ASIC has cancelled the Australian financial services licence (AFSL) of Sydney-based firm Investment Advisers Alliance. Investment Advisers Alliance, which has held the licence since January 2013, failed to lodge financial statements and auditor’s reports for four consecutive years.  More...

NSW Treasury Corporation joins ACSI
MEDIA – 09 June 2017 - The NSW Treasury Corporation (TCorp) has joined the Australian Council of Superannuation Investors. The addition of TCorp to the Australian Council of Superannuation Investors means the group's members collectively manage over $1.5 trillion in assets.  More...

MDA provider fined by ASIC
MEDIA – 09 June 2017 - ASIC has fined an equities and derivatives managed discretionary account (MDA) provider for making false or misleading statements on its website. Synergy Financial Markets has paid a penalty of $10,800 after ASIC issued it with an infringement notice for false or misleading statements on its website.  More...

External dispute resolution framework Supplementary Issues Paper
TREASURY – 08 June 2017. To enable the panel to consider stakeholder views on the expanded terms of reference, a new Supplementary Issues Paper has been released for consultation.  More...

Macquarie Equities remediation program – update
ASIC – 08 June 2017 - ASIC notes that the remediation program established by Macquarie Equities Limited (MEL) under its Enforceable Undertaking with ASIC (see 13-010MR and 14-201MR) is substantially complete.  More...

Make ASIC a ‘proactive’ watchdog: Kell
MEDIA – 07 June 2017 - ASIC deputy chairman Peter Kell has made the case for stronger banning powers, tougher supervision and higher penalties for wrong-doers. Pointing to the "unprecedented public scrutiny" of financial services in recent years, Mr Kell urged the government to see through the reforms that are currently underway to strengthen ASIC.  More...

Macquarie wary about ‘disproportionate’ levy
MEDIA – 06 June 2017 - The government’s major bank levy is likely to have “unintended and disproportionate” consequences on Macquarie's local earnings given the group’s “unique” mix of banking and non-banking services. Macquarie said the impact of the levy is "still unclear", and noted that the standard for the calculation of the levy is yet to be determined by APRA.  More...

Banks bamboozling consumers with 'choice' overload in super, new report finds
ISA – 06 June 2017- When it comes to investment choice in superannuation, less is best, a new report has found. Options to Lose – how sales became choice, an Industry Super Australia (ISA) analysis of official ten-year APRA data, shows the best performing superannuation funds have a main default investment option and a small number of other investment options.  More...

Deadline looms for SMSFs wanting to take advantage of higher caps
SMSF Association – 05 June 2017 - SMSF trustees looking to take advantage of the higher contribution caps for concessional and non-concessional contributions that end on 30 June 2017 need to ensure any additional money is in their SMSF bank account before the end of the financial year.  More...

Major Bank Levy Bills Introduced
MEDIA – 31 May 2017 - The Treasurer Scott Morrison has introduced into the House of Representatives the two Bills that will bring about the implementation of the "major bank levy" (MBL), a key part of the Federal government's 2017-2018 budget.  More...

Treasurer: how we’re making the big banks behave better
TREASURY – 30 May 2017 - Under our new Banking Executive Accountability Regime, the financial regulator APRA will have the power to put banking executives under greater scrutiny, making them accountable for the decisions they make and fail to make.  More...

Tax Commissioner’s calls to better align super payments with wages, welcome
ISA - 30 May 2017 - Industry Super Australia has welcomed Tax Office Commissioner Chris Jordan’s call for superannuation payment timing to better align with wages and salary.  More...

Banks rake in $8.7 billion in super fees in 2016
ISA – 29 May 2017 - The major banks raked in nearly $9 billion in fees from Australian workers’ super nest eggs in 2016, new research by Rainmaker Information reveals.  In return, the bank-owned super funds delivered returns of 2 per cent less per annum when compared to industry super funds over 10 years.  More...

Retirement cost increases driven by power prices, health care, food and rates
ASFA – 29 May 2017 - Significant hikes in the cost of power, health care, food and rates over the past 10 years have driven increases in the amounts needed to achieve both modest and comfortable retirements, according to the latest data from the Association of Superannuation Funds of Australia (ASFA).  More...

Published – articles, papers, reports

Options to lose: How "sales" become "choice" and the impact on superannuation return
Industry Super Australia (ISA) Research Note: June 2017
This analysis of official ten-year APRA data, shows the best performing superannuation funds have a main default investment option and a small number of other investment options.  More...

In practice and courts

External dispute resolution framework:  Supplementary Issues Paper
To enable the panel to consider stakeholder views on the expanded terms of reference, a new Supplementary Issues Paper has been released for consultation. The Ramsey Review builds on the Government’s response to the Financial System Inquiry which sets out a suite of policies to improve Australia’s financial system. Submissions are welcome before 28 June 2017. See Supplementary Issues Paper and further information on the Treasury website.

AASB ITC 36 – Feedback sought on IFRS 13 Post-implementation Review
How useful are the disclosures of Level 3 fair value measurements? What issues do you encounter when applying the ‘highest and best use’ concept in measuring the fair value of non-financial assets? Is it challenging to determine whether a market is ‘active’ or whether unobservable inputs are ‘significant’? The AASB is seeking feedback on these issues, amongst others, in conjunction with the release of the IASB Request for Information Post-implementation Review—IFRS 13 Fair Value Measurement (05 June 2017).  

Webinar: AASB 1056 Superannuation Entities
Hosted by AASB CEO Kris Peach and Acting Assistant Technical Director Clark Anstis, this webinar will provide an opportunity to discuss implementation issues that have been raised with the AASB (30 May 2017).  Further information and registration

SMSF Association Technical Day Series
Kick off the new financial year and new legislation landscape with confidence by attending the 2017 Technical Day. Ensure your technical advice and service offerings are well prepared to respond to your clients’ increasingly complex circumstances and give yourself an edge in the marketplace. Dates: Sydney 18 July; Brisbane 19 July; Melbourne 20 July.  More...

ASFA Submissions
30 May 2017 - Submission to the Treasury - Draft regulations for the Industry Funding Model for the Australian Securities and Investments Commission.  More...

FPA submissions
ASIC Supervisory Cost Recovery Levy Regulations 2017 (Exposure Draft)
Treasury -  30 May 2017.

SMSF Submissions
01 June 2017 - Future of Financial Advice Post-Implementation review.

IASB: second phase of IFRS 13 review with call for information
The Board has issued a request for stakeholders to tell the Board about their experience with the accounting standard that explains how to measure the ‘fair value’ of assets and liabilities, IFRS 13. The Request for Information: Post-implementation Review—IFRS 13 Fair Value Measurement document can be found here.  The deadline for submitting responses is 22 September 2017.  More... 

Cases

Carrette v Superannuation Complaints Tribunal [2017] FCA 640
SUPERANNUATION – where trustee had rejected complainant’s claim for a total and permanent disablement benefit – review of decision of the Superannuation Complaints Tribunal affirming decision of the trustee – where Tribunal erred by failure to engage with critical parts of medical evidence before it – orders made remitting matter to be determined by the Tribunal in accordance with reasons – decision set aside - Superannuation (Resolution of Complaints) Act 1993 (Cth) ss 37, 46.  

Gomez v Board of Trustees of the State Public Superannuation Scheme [2017] QSC 098
EQUITY – TRUSTS AND TRUSTEES – PROCEEDINGS BETWEEN TRUSTEE AND BENEFICIARIES OR THIRD PARTIES – where the plaintiff was a member of the superannuation scheme administered by the respondent – where the appellant suffered total permanent disablement (“TPD”) – where the plaintiff’s claim for a TPD benefit under the superannuation scheme was rejected on the basis the information available was not sufficient to establish the requirements for a total and permanent disablement benefit – where a review of that decision was unsuccessful as the defendant Board determined that the plaintiff did not satisfy the definition of total and permanent disablement – where a request for further review was determined on the basis that a review of the decision and additional material did not indicate a reasonable possibility of a different result to the Board’s earlier decision – whether the relevant decision made by the defendant was open on the evidence – whether the relevant decision was made upon a real and genuine consideration of the material before the defendant.  

 

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.