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FOFA disadvantages early move on fee-for-service
25-May-2012 - Draft regulation released on grandfathering and conflicted remuneration this week, may disadvantage advisers who have already moved to a fee-for-service model in line with the new FOFA regime.  The Financial Planning Association of Australia (FPA) manager said that while his organisation is seeking clarification, because product fees are excluded from a fee disclosure statement, trail commissions embedded in product fees would therefore be exempt. More…

APRA empowered to chase rogue superfund directors
24-May-2012 – The Superannuation Legislation Amendment (Trustee Obligations and Prudential Standards) Bill 2012 provides the Australian Prudential Regulation Authority (APRA) with the power to issue standards in relation to superannuation prudential matters and make the relevant consequential amendments. More…

Government closes super regulatory gap
24-May-2012 - The Lower House of Parliament has passed legislation that will help close a "regulatory gap" within Australia's superannuation system by giving the (APRA greater powers to pursue problem directors.  The measures contained in the bill implement changes recommended by the Cooper Review into the governance, efficiency, structure and operation of Australia's superannuation system, Shorten said in a statement. More…

Infrastructure schedule not relevant: ASFA
24-May-2012 - The launch of the National Infrastructure Construction Schedule (NICS) will do little to help superannuation funds allocate money to infrastructure projects, according to the Association of Superannuation Funds of Australia (ASFA). More…

Treasury releases further FOFA drafts
24-May-2012 - Treasury has released two new exposure drafts on the government's Future of Financial Advice (FOFA) reforms focusing on product fees, a delayed application date for risk insurance remuneration and regulations on grandfathering

No elation, but $19m certainty
24-May-2012 - The 309 superannuant’s who had invested $65 million in now collapsed ''principal-protected'' notes were over 60.  Bringing their class action to trial would take another two years, with combined legal costs of $15 million, with a settlement offer of $19 million on the table, a “'Compromise in litigation” according to Justice John Sackar of the New South Wales Supreme Court, explaining his reasons for signing off on the class action. More…

SPAA calls for last resort compensation scheme
SELF MANAGED SUPER FUNDS PROFESSIONALS' ASSOCIATION OF AUSTRALIA LIMITED 23-May-2012 - SPAA CEO believes there is a convincing argument to establish a last resort compensation scheme for the financial services sector.  Superannuation fraud affects ordinary Australians saving for their retirement, and any solution must address a problem that impacts the whole financial services industry, including superannuation. More…

Superfund Directors under greater scrutiny thanks to Government Bill
BILL SHORTEN 23-May-2012 - Minister for Financial Services and Superannuation Bill Shorten welcomed the passage of legislation through the House of Representatives that improves requirements for the trustees of superannuation funds and provides APRA with greater powers in respect of superannuation.  The measures contained in the Superannuation Legislation Amendment (Trustee Obligations and Prudential Standards) Bill 2012 implement changes recommended by the Cooper review into the governance, efficiency, structure and operation of Australia’s superannuation system. More….

Industry super funds continue to outperform retail sector
AFR; INDUSTRY SUPER NETWORK 22-May 2012 - New data released by research house SuperRatings shows that the industry super fund sector has once again outperformed the retail super sector in the SR 50 Balanced Option over one, five, seven and ten year periods to 30 April 2012.  The new data shows that industry super funds achieved a median rolling return of 5.76% over the last ten years, compared to a median rolling rate of return of 3.87% by retail funds over the same period, a difference of 1.89%. More…

Bill Shorten fingers financial advisers on Trio Capital
17-May-2012 - Self-managed superannuation fund (SMSF) trustees need to consider paying a levy to be able to access the same compensation arrangements as people in Australian Prudential Regulation Authority (APRA)-regulated funds, according to the Minister for Financial Services, Bill Shorten. More…

Financial planning industry tackles code of conduct confusion
17-May-2012 -The code of conduct carve-out to opt-in requirements has led to questions over what happens when there is a disparity between the approach of financial planning licensees and the obligations of authorised representatives, as well as suggestions larger licensees could look to submit their own codes. More…

Government and regulators must act on bipartisan Trio report
MATHIAS CORMANN 16-May-2012 137P1814- The Coalition welcomes the release of the report on the collapse of Trio Capital by the Parliamentary Joint Committee on Corporations and Financial Services and calls on the government and regulators to act on its recommendations.  The Trio Inquiry has highlighted the considerable financial losses and the physical and emotional toll suffered by hundreds of Australian investors who were defrauded in the largest superannuation fraud in Australian history. More…

SPAA to host 9th State Technical Conferences for SMSF professionals
SELF MANAGED SUPER FUNDS PROFESSIONALS' ASSOCIATION OF AUSTRALIA LIMITED 22-May-2012 – The SMSF Professionals’ Association of Australia (SPAA) will hold its annual series of State Technical Conferences in five capital cities around Australia in July and August to ensure its members stay abreast of standards, regulations and changes in the industry.  They will be held in Sydney (24 July); Melbourne (25 July); Adelaide (31 July); Perth (1 August); and Brisbane (7 August). More…

Self Managed Superannuation Fund Ruling SMSFR 2012/1
AUSTRALIAN TAXATION OFFICE - ATO 23/05/12 144P1056 - Self Managed Superannuation Funds: limited recourse borrowing arrangements - application of key concepts.  Previously issued as SMSFR 2011/D1.  Application: applies to arrangements entered into on or after 7 July 2010 (including an arrangement that is a refinancing of a borrowing of money under an arrangement entered into before, on or after 7 July 2010

MySuper Authorisation and Transition – May 2012
The APRA MySuper Consultation Package released in May includes: Discussion Paper - MySuper authorisation and transition standard ; Application Form - Authority to offer a MySuper product  ; Instruction Guide - Application form - Authority to offer a MySuper product ; Draft Prudential Standard SPS 410 MySuper Transition  To view other material relating to APRA’s superannuation reforms, click here.

Privacy Amendment (Enhancing Privacy Protection) Bill 2012 introduced
23-May-2012 - The Privacy Amendment (Enhancing Privacy Protection) Bill 2012 has been introduced into the House of Representatives. The Bill will amend the Privacy Act to:

  • Create the Australian Privacy Principles (APPs), a single set of privacy principles applying to both Commonwealth agencies and private sector organisations, which replace the Information Privacy Principles (IPPs) for the public sector and the National Privacy Principles (NPPs) for the private sector. The Bill introduces more comprehensive credit reporting, new provisions on privacy codes and the credit reporting code and Clarify the functions and powers of the Privacy Commissioner.


Salton and Commonwealth  Superannuation  Corporation [2012] AATA 305
SUPERANNUATION – beneficiary – commonwealth superannuation scheme – spouse benefit Widow - marital or couple relationship - whether separation due to illness - whether marital relationship would exist but for illness - Delusional Disorder (Persecutory Type) - Schizophrenia - Alcohol Dependence with Physiological Dependence - American Psychiatric Association Diagnostic and Statistical Manual of Mental Disorders IV. More…


Superannuation Legislation Amendment (Stronger Super) Bill
BILL SHORTEN 24 May 2012 145P1006 - Minister for Financial Services and Superannuation Mr Shorten second reading speech introducing the legislation.  The Bill and Explanatory Memorandum can be viewed here.

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 endeavor 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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