In the media
Appointment of members to the Australian Government Financial Literacy Board
TREASURY – 25 January 2018 - The Minister for Revenue and Financial Services, the Hon Kelly O’Dwyer MP, has today announced reappointments to the Australian Government Financial Literacy Board (the Board), commencing on on 1 February 2018. More...
O'Dwyer proposes compulsory unpaid super law
MEDIA – 25 January 2018 - The Federal Government is proposing all employers transition to the Single Touch Payroll (STP) system from 1 July 2019 under its superannuation guarantee reform package. More...
Consultation on protecting your superannuation entitlements
TREASURY – 24 January 2018 - The Government has released draft legislation to protect workers’ superannuation entitlements and modernise the enforcement of the superannuation guarantee. The draft laws will extend Single Touch Payroll to all employers from 1 July 2019, which will improve the reporting of superannuation obligations and improve the Australian Taxation Office’s ability to get real time information about an employer’s compliance. More...
AIST welcomes Government measures to tackle non-payment of super
AIST – 24 January 2018 - AIST has today welcomed the Government’s announcement of a package of measures to protect workers’ super entitlements and tackle the problem of unpaid super. More...
Product flogging still a problem in financial advice
MEDIA – 25 January 2018 - After all of the scandals, inquiries, reviews and new laws and regulations it's surprising the extent to which financial planners employed by or aligned with the big four banks and AMP flog their employers' superannuation funds and other financial products to punters. More...
Big banks, biased financial advisers, and the three tricks to avoid them
MEDIA – 25 January 2018 - This week the big banks got more bad press when the corporate regulator ASIC declared that their huge networks of financial advisers were failing to operate in the best interests of their customers. The report, which covered the financial advice arms of the Commonwealth Bank, Westpac, ANZ, NAB and AMP, found that an astonishing 75 per cent of advice provided was not in the best interests of customers. More...
ASIC reports on how large financial institutions manage conflicts of interest in financial advice
ASIC – 24 January 2018 - An ASIC review of financial advice provided by the five biggest vertically integrated financial institutions has identified areas where improvements are needed to the management of conflicts of interest. The review looked at the products that ANZ, CBA, NAB, Westpac and AMP financial advice licensees. More...
CBA to pay $1.9 million in advice compensation
MEDIA – 24 January 2018 - The Commonwealth Bank is expected to pay out $1.9 million in compensation over poor advice provided by five financial planners, in the latest case of remediation at the country's biggest bank. More...
Update on Commonwealth Bank financial planning licence conditions: progress on compensation scheme
ASIC – 23 January 2018 - Under additional licence conditions imposed on Commonwealth Financial Planning Ltd and Financial Wisdom Ltd by the Australian Securities and Investments Commission (ASIC), CBA will review all advice given to customers of five former representatives. CBA will pay compensation where customers have suffered loss. More...
FSC response to ASIC Report 562, “Financial advice: Vertically integrated institutions and conflicts of interest”
FSC – 24 January 2018 - ASIC’s review shows there is still work to be done to address community and regulator concerns about the quality of advice in Australia. The FSC and its members welcome regulatory scrutiny to ensure that consumers are receiving the highest standard of advice, and to ensure conflicts of interest are managed in a way that puts consumers first. More...
'Perfect storm': Global financial system showing danger signs, says senior OECD economist
MEDIA – 23 January 2018 - The world financial system is as dangerously stretched today as it was at the peak of the last bubble but this time the authorities are caught in a "policy trap" with few defences left, a veteran central banker has warned. More...
ASIC warns financial services licensees against 'cutting corners' on death nomination forms
ASIC – 19 January 2018 - The Australian Securities and Investments Commission (ASIC) is putting the financial advice sector on notice about meeting requirements for witnessing signatures, after finding issues with advisers failing to correctly witness binding death nomination forms for superannuation benefits. More...
Former CBA planner banned after cutting and pasting signatures
MEDIA – 18 January 2018 - A former Commonwealth Bank financial planner has been banned from the industry for five years after the corporate regulator alleged she cut customer signatures from documents kept on file and pasted them onto new documents. More...
In practice and courts
Consultation on protecting your superannuation entitlements
The Government has released draft legislation to protect workers’ superannuation entitlements and modernise the enforcement of the superannuation guarantee. The draft legislation and supporting materials are available on the Treasury website, and interested stakeholders are encouraged to provide their views. Submissions are invited by 16 February 2018.
Reminder: Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry
The Inquiry will consider the conduct of banks, insurers, financial services providers and superannuation funds (not including self-managed superannuation funds). The proposed terms of reference will form the basis of the Letters Patent, terms of which will be recommended to His Excellency, pursuant to the Royal Commissions Act 1902 (18 December 2017). More... More... More.... Note: Commissioner Hayne is authorised to submit an interim report to the Governor-General no later than 30 September 2018, and required to submit a final report no later than 1 February 2019.
REP 562 Financial advice: Vertically integrated institutions and conflicts of interest
ASIC has conducted a project to examine how Australia’s largest banking and financial services institutions manage the conflict of interest that arises as a result of institutions engaging in both the provision of personal advice to retail clients and the manufacture of financial products under a vertically integrated business model. The review found, 68% of clients’ funds were invested in in-house products. Released 24 January 2018. More...
Current Inquiries - Economics Legislation Committee
Financial Sector Legislation Amendment (Crisis Resolution Powers and Other Measures) Bill 2017 [Provisions]
Status: Accepting Submissions Date Referred: 16 November 2017 Submissions Close: 18 December 2017.
Reporting Date: 09 February 2018.
Consumer protection in the banking, insurance and financial sector
Status: Submissions Closed. Date Referred: 29 November 2016 Reporting Date: 28 March 2018.
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.