In the media – National

Superannuation Reform: Third tranche of exposure draft
TREASURY – 14 October 2016 - The Turnbull Government has released further Exposure Draft legislation and explanatory material for the superannuation reforms first announced in the 2016-17 Budget.  More...

LIF raises clawback, commission conflicts
MEDIA – 14 October 2016 - The life insurance framework (LIF) bill reintroduction in Parliament will create compliance hassles for financial advice and insurance providers trying to restructure remuneration flows, particularly around clawbacks and hybrid commission structure.  More...

ASIC consults on four ‘sunsetting’ class orders on registered managed investment schemes
ASIC – 14 October 2016 – ASIC has released a consultation paper proposing to remake four class orders on registered schemes, which are due to expire (‘sunset’) between 1 October 2017 and April 2018.  More...

Advisers see fintech as tool not threat
MEDIA – 14 October 2016 - More financial advisers are embracing fintech as a tool to enhance services rather than seeing it as threat to their livelihood and a new report from the Financial Planning Standards Board (FPSB) aims to start a global conversation.  More...

FOS recommendations to further improve consumer outcomes within Australia's EDR and complaints framework
FOS – 14 October 2016 - The Financial Ombudsman Service Australia (FOS) has submitted to the government’s review of EDR key recommendations to build on the strengths of the current Ombudsman model based on the principles of fairness, openness, simplicity and adaptability.  More...

Ombudsman cautions that mergers and tribunals will not help consumers
CIO – 14 October 2016 - In its submission to the review of Australia’s three financial sector Ombudsman schemes (Ramsay Review), the Credit and Investments Ombudsman (CIO) has called for a common entry point or triage service.  More...

No compulsion on retirement income: O'Dwyer
MEDIA – 13 October 2016 - The government is close to releasing a new discussion paper on comprehensive income products for retirement (CIPRs), says Financial Services Minister Kelly O'Dwyer, but retirees will not be "forced" to use them.  More...

Life sales, claims improved under FSC code
MEDIA – 12 October 2016 - A minimum standard for trauma definitions within policies, clear expectations around claims processing and restrictions on how insurance could be sold all formed key parts of the Financial Services Council’s (FSC) first iteration of its life insurance industry code of practice released.  More...

Banking Tribunal Should Not Be Funded By Not-for-Profit Super
ISA – 12 October 2016 - Super fund members in the not-for-profit superannuation sector should not be called on to contribute funding to pay for an integrated, one-stop-shop tribunal to deal with problems that relate pointedly to the retail banking sector. APRA-regulated super funds already have their own SCT which is a separate, stand-alone external dispute resolution tribunal.  More...

Government Must Ban All Sales Commissions On Life Insurance
ISDA - 12 October 2016 - Industry Super Australia (ISA) has expressed concern that the proposed life insurance reforms tabled by the Government are a step in the right direction, but do not go far enough.  More...

AIST welcomes heightened APRA and ASIC focus on insurance to improve consumer outcomes
AIST – 12 October 2016 - AIST today welcomed moves by both APRA and ASIC to improve consumer outcomes in life insurance products.  More...

ASIC consults on 'sunsetting' class order about managed investment scheme buy-backs and updates to related guidance
ASIC – 12 October 2016 – ASIC has released a consultation paper proposing to remake its class order on managed investment scheme buy-backs, currently due to expire (‘sunset’) on 1 April 2018, and proposed changes to platforms policy.  More...

Life Insurance Remuneration Reforms
FSC – 12 October 2016 - The FSC welcomes the reintroduction of the Corporations Amendment (Life Insurance Remuneration Arrangements) Bill. These legislative provisions are on track to limit upfront commissions to advisers and ban conflicted remuneration provisions on life insurance products. The life insurance remuneration bill is part of a raft of reforms sweeping the life insurance industry.  More...

ASFA supports Life Insurance Code
ASFA – 11 October 2016 - The ASFA has welcomed the Life Insurance Code launched today by the FSC. ASFA Interim CEO Mr Jim Minto said it will help enhance consumer rights and lift standards and consistency in the application of processes, like claims and product management, across the life industry.  More...

Life Insurance Code of Practice released
FSC - 11 October 2016 - The FSC is pleased to launch the life insurance industry’s first-ever industry-led consumer Code of Practice. The Code is mandatory for FSC members, and is first and foremost for consumers. It will ensure that insurer practices and obligations are lifted substantially to better meet consumer needs and expectations. The Code is governed by an independent body which will ensure compliance.  More...  (Media) More...

Findex Group Limited and Financial Index Australia Pty Ltd pay $21,600 in penalties
ASIC – 10 October 2016 - Findex Group Limited and Financial Index Australia Pty Ltd (FIA) have each paid a $10,800 penalty following the issuing by ASIC of infringement notices for potentially misleading claims on the Findex website (  More...

AIST wants higher concessional cap for older workers
MEDIA - 10 October 2016 - The Australian Institute of Superannuation Trustees is urging the federal government to retain the $35,000 concessional cap for older workers. As the AIST finalises its submission to the second tranche of superannuation reforms.  More...

Group Insurance Statement of Intent
ASFA – 07 October 2016 - Australia’s superannuation bodies comprising the Association of Superannuation Funds of Australia (ASFA), the Australian Institute of Superannuation Trustees (AIST), the Financial Services Council (FSC), the Industry Funds Forum (IFF) and Industry Super Australia (ISA) share a common belief in the following principles underlying group insurance in superannuation.  More...

ASIC warns AFS licensees to lodge financial statements and auditor's reports on time
ASIC – 06 October 2016 - ASIC has been pursuing Australian Financial Services (AFS) licensees that have failed to meet their obligation to lodge their annual financial statements and auditor's reports with ASIC within the specified timeframe.  More...

ASIC takes civil action against Ben Jayaweera and Growth Plus Financial Group Pty Ltd (in liquidation)
ASIC - 04 October 2016 - ASIC is seeking declarations that Growth Plus is the trustee of the Australian Diversified Sector Income Fund (ADSIF) and that prior to being wound up, Growth Plus had contravened the Corporations Act by issuing units in the ADSIF contrary to the authorisation of its Australian Financial Services licence (AFS licence).  More...

ASIC cancels AFS licence of Lotus Securities
ASIC - 04 October 2016 - ASIC has cancelled the Australian financial services (AFS) licence of Lotus Securities Ltd (AFS licence 306812) for failing to comply with a number of its key obligations as a financial services licensee. ASIC Commissioner Greg Tanzer said, 'A responsible entity has an important gatekeeper role to ensure a managed investment scheme is operated in accordance with the Corporations Act.  More...

In practice and courts

Superannuation Reform: Third tranche of exposure draft
This tranche of Exposure Draft legislation includes legislative amendments to better target superannuation tax concessions by reducing the annual non-concessional contributions cap to $100,000 and restricting access to individuals with superannuation balances below $1.6 million. The Exposure Draft Bill and Explanatory Memorandum are available on the Treasury website. Submissions close on 21 October 2016. 

APRA sets expectations for improvements to claims handling: 16.38
APRA has sent letters to life insurers and superannuation trustees setting out its expectations for improvements to the oversight and handling of insurance claims. APRA’s letters to life insurers and trustees coincide with the release of a report by the ASIC on its investigation into the treatment of life insurance claimants.  See the ASIC statement here More...  (Media) More...

FPA Submissions
Superannuation Reform Package – second tranche The Treasury 14 October 2016.

Life Insurance Remuneration Arrangements Bill introduced
The Corporations Amendment (Life Insurance Remuneration Arrangements) Bill 2016 has been introduced into Parliament (12/10/2016). The Bill removes the exemption in the Corporations Act from the ban on conflicted remuneration for benefits paid in relation to life insurance. If passed the changes will commence on 1 January 2018.

Life Insurance Code finalised
The Financial Services Council (FSC) has published the Life Insurance Code of Practice.  The Code commenced on 1 October 2016 with a transition period until 30 June 2017. The Code sets out the life insurance industry’s key commitments and obligations to customers including on policy design and disclosure, sales practices and advertising and policy changes and cancellation rights.  More...

FOS releases 2015-16 Comparative Tables
The Financial Ombudsman Service (FOS) Australia today published the 2015-16 Comparative Tables. These tables provide dispute statistics about financial services providers (FSPs) who are members of FOS (04 October 2016).

ASFA submissions
07 October 2016 Submission to The Treasury: Response to issues paper: Review of the financial System External Dispute Resolution Framework.  More...

AIST submissions
10 October 2016 Superannuation reform package tranche 2
07 October 2016 External Dispute Resolution Framework


Ward v Commissioner of Taxation [2016] FCAFC 132
ADMINISTRATIVE LAW – appeal under s 44 of the Administrative Appeals Tribunal Act 1975 (Cth) on a question of law – whether Tribunal misconstrued the scope of the expression “special circumstances” in s 292-465 of the Income Tax Assessment Act 1997 (Cth) – whether Tribunal erred in considering that making the determination was consistent with the object of Div 292 of the Income Tax Assessment Act 1997 (Cth).
TAXATION – non-concessional contributions to  superannuation  fund – application to Commissioner for a written determination the non-concessional contributions be disregarded or allocated instead for the purposes of another financial year specified in the determination – whether Tribunal erred in considering there were no special circumstances – whether Tribunal erred in considering that making the determination was consistent with the object of Div 292 of the Income Tax Assessment Act 1997 (Cth).
PRACTICE AND PROCEDURE – whether leave should be granted to the applicant to rely on grounds not advanced before the Tribunal. 

Strata Community Insurance Agencies Pty Ltd and Australian Securities & Investments Commission [2016] AATA 768
CORPORATIONS LAW – Australian Financial Services licence – “authorised representative” – cross endorsement of licensees – whether refusal to cross endorse was reasonable – impact of refusal to cross endorse – whether applicant should be exempted under s 926A from requirement for cross endorsement from incumbent licensees – decision affirmed. Corporations Act 2001, ss 760A, 766B(3)-(4), 912A(1), 912D, 916A(1), 916C(1)-(2), 916F, 917A(3), 917C(3), 917D-917F, 926A(2).  

Clemente Group Holdings Pty Ltd and Australian Securities and Investments Commission [2016] AATA 758
CORPORATIONS – licensing – application for financial services licence – whether licence should be granted – whether Tribunal has ‘no reason to believe’ applicant will not comply with obligations – decision under review affirmed. Corporations Act 2001 ss 911A, 912A, 913B, 920A.  

Legislation – Commonwealth

Superannuation (Departing Australia Superannuation Payments Tax) Amendment Bill 2016
12/10/2016 - The Bill increases the rate of the departing Australia superannuation payments tax to 95 per cent for working holiday makers. Date of effect: The measures in the Bill applies from 1 January 2017. 



Chris Lovell, Chairman
T: +61 3 9321 9832
Paul Faure, Partner
T: 61 3 9321 9904
Bill Glover, Partner
T: 61 3 9321 9844

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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