In the media
DIY superannuation trend costly for industry funds:
research
MEDIA – 13 November 2014 – Around 38% of Australians
who waded into DIY fund territory did so by switching from industry
funds, according to new research from the Financial Services
Council and UBS. The assets of DIY super funds have ballooned by
more than 70% from $316.5 billion to $547 billion in just five
years.
More...
ASIC issues further guidance on superannuation
forecasts
ASIC – 13 November 2014 – ASIC has issued further
guidance to assist superannuation fund trustees to provide their
members with retirement estimates. These estimates help members to
engage with their superannuation.
More...
FOS monetary limits receive industry
support
MEDIA – 13 November 2014 – Recent industry
consultation performed by the Financial Ombudsman Service
(FOS) has confirmed general support for the
monetary value of its current compensation measures.
More...
ASFA Annual General Meeting: Board
appointments
ASFA – 13 November 2014 – The Association of
Superannuation Funds of Australia (ASFA) announces
the ASFA Board has re-elected TAL Limited Managing Director Mr Jim
Minto as Chair of the ASFA Board, until an independent Chair has
been appointed, following ASFA members' approval of a new
constitution today.
More...
Three steps to fixing the $92,000 superannuation gender
gap: new ASFA policy framework
ASFA – 13 November 2014 – The law should be changed to
allow employers to contribute more to the superannuation accounts
of their female workers, without breaching anti-discrimination
legislation, according to a new policy framework released by the
Association of Superannuation Funds of Australia
(ASFA).
More...
Policy framework to deliver retirement income streams
and a better super system: new ASFA report
ASFA – 13 November 2014 – Trustees should be able to
default members into MyPension type income streams and it should be
compulsory for superannuation fund statements to disclose income
stream projections, according to a new policy framework released by
the Association of Superannuation Funds of Australia
(ASFA).
More...
ASFA launches blueprint for post-retirement
system
MEDIA – 13 November 2014 – The Association of
Superannuation Funds of Australia (ASFA) has
attempted to break the deadlock on retirement income innovation
with the launch of a paper that sets out a framework for building
an effective post-retirement system. More...
Traditional safe havens "dangerous":
MLC
MEDIA – 13 November 2014 – Traditional safe havens
such as bonds and term deposits can no longer be relied on to
balance out equity risk, MLC has warned. The MLC head of portfolio
specialists group said he considers traditional safe havens to be
"dangerous" given that even a slight increase in
inflation is not priced into their current value.
More...
ASFA 2014 National Conference: Keynote session six
– Sustainability of the system in a time of
disruption
ASFA – 13 November 2014 – Speech by Pauline Vamos,
Chief Executive Officer, ASFA.
More...
ASIC guidance on superannuation forecasts
ASIC – 13 November 2014 – The changes will allow a
superannuation fund to include an estimate of the age pension which
might be available to the member along with the member's
superannuation benefit at retirement. The changes are to ASIC's
existing relief for retirement estimates.
Regulatory Guide 229 Superannuation forecasts (RG 229)
Class Order [CO 14/870] Amendment of Class Order [CO 11/1227]
Explanatory Statement for Class Order [CO 14/870]
ASFA: New Framework for a Better System
ASFA – 13 November 2014 – ASFA outlines the principles
on which it believes Australia's retirement income system
should continue to be built, as well as the goals and objectives
for the system and provides concrete recommendations on the
policies and design elements required to achieve these objectives.
More...
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ASFA publications
ASFA – 13 November 2014 – ASFA
Paper: The future of Australia's super: a new framework for
a better system.
Companies "in the dark" on life
premiums
MEDIA – 12 November 2014 – Against the backdrop of a
changing superannuation and insurance landscape, Australian
companies are "unaware" of scheduled changes to life
insurance premiums, Aon Hewitt has found. In its Superannuation
and Insurance Pulse Survey, Aon Hewitt found only 38% of
Australian companies were aware premiums are due to rise, and of
those companies, "more than half" did not know how much
the increase will be.
More...
APRA has released proposed minor changes to general
insurance reporting standards
APRA – 11 November 2014 – ASIC releases advice on the
proposed minor changes to three reporting standards, to address
issues raised with APRA by industry.
More...
Record number of IPO exits underpins strong returns to
PE & VC investors in FY2014
AVCAL – 11 November 2014 – A significant increase in
exit activity across the Australian private equity
(PE) and venture capital (VC)
industry underpinned strong returns for investors in the year ended
30 June 2014, according to the 2014 Australian Private Equity and
Venture Capital Association (AVCAL) and EY
Yearbook, which was released today.
More...
TAL lobbies for annuity regulation change
MEDIA – 11 November 2014 – Life insurer TAL has argued
in favour of regulatory changes to income stream products in a
detailed response to the Treasury's 'Review of retirement
income stream regulation' discussion paper. More...
Make it easy for consumers to tell a "local"
bank from a major bank
COBA – 11 November 2014 – Major banks will have to
rethink their multi-brand strategies if the Financial System
Inquiry (FSI) this month recommends changes to disclosure rules to
better inform and empower consumers. COBA Acting CEO Mark Degotardi
says consumer research suggests major banks are getting away with
portraying their sub-brands as independent competitors.
More...
APRA calls for tougher banks
MEDIA– 10 November 2014 – While the Australian banking
industry is relatively resilient to the immediate impact of a
downturn, there is still scope for further improvement, argues
APRA.
More...
FSI should recommend stronger super safety net for
higher retirement savings
ISA– 10 November 2014 – Industry Super Australia's
(ISA) final submission to the Financial System
Inquiry (FSI) emphatically demonstrates the outperformance of
industry superannuation funds over bank-owned and retail funds,
underpinned by a robust super safety net.
More...
Web could be key to Super member
engagement
FINSIA– 10 November 2014 – Very few defined
contribution (DC) pension plan participants seek
advice from their fund, but harnessing online facilities could be
the key to driving member engagement. According to an ACFS paper,
entitled The demand for advice in defined contribution pension
plans, the internet could be used as a pathway to encourage
participants to take advantage of their fund's advice
facilities.
More...
Planners flock to CFP® Certification
Program
FPA– 10 November 2014 – The Financial Planning
Association of Australia (FPA) has experienced a
surge in demand for the (CFP) certification
program on the back of the ongoing debate regarding education
standards of financial planners. More...
ASFA submissions
ASFA – 10 November 2014 – Submission
to Treasury: Updated SuperStream – Pass through exposure
draft and explanatory statement.
APRA: New FAQ on MySuper products and one amended FAQ on
superannuation reporting standards
APRA – 7 November 2014 – APRA has released one new FAQ
on MySuper products and one amended FAQ on superannuation reporting
standards.
More...
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Lower super fees may drive SMSF closures
MEDIA– 6 November 2014 – Reduced fees in Australian
Prudential Regulation Authority (APRA)-regulated
funds could result in self-managed super fund
(SMSF) closures, according to the latest research
from CoreData.
More...
TAL restructures super board
MEDIA– 5 November 2014 – Three independent directors
have been appointed to the board of TAL Superannuation Limited
(TASL). Peter Lewinsky has been appointed as
independent chair of the Trustee Board while Anne Templeman-Jones
has been appointed as an independent director and chair of
TASL's remuneration committee.
More...
RBA announces cash rate decision
MEDIA– 4 November 2014 – The Reserve Bank of Australia
has announced the outcome of its monthly board meeting on the
official cash rate and voted to leave the cash rate on hold at
2.5%.
More...
AAT backs Astarra fund manager ban
MEDIA– 4 November 2014 – An investment manager
implicated in the Trio Capital fraud has failed to have an ASIC
banning order overturned by the Administrative Appeals Tribunal. In
a decision handed down the tribunal opted to dismiss an appeal by
former Astarra Strategic Fund chief investment strategist and
Astarra Asset Management director Eugene Liu of a permanent banning
order issued by ASIC in March 2013.
More...
Australians stuck in super squeeze, with women bearing
the brunt
REST– 3 November 2014 – Australians may be financially
responsible when it comes to paying off the mortgage, but many are
neglecting to save for the future, placing them in a risky
situation for retirement, according to new research released today
by REST Industry Super.
More...
Cases
Queensland Local Government Superannuation Board v
Superannuation Complaints Tribunal & Anor [2014] FCCA
2473
ADMINISTRATIVE LAW – Superannuation – wind up and
transfer of fund – outgoing trustee scheme for distribution
of anticipated surplus/deficit on rollover occasioned by end of
year and tax issues – incoming trustee applying funds in
accordance with outgoing trustee's decision – in
circumstances no fetter on incoming trustee's discretion.
APPEAL – Superannuation Appeals Tribunal – question of
law – denial of procedural fairness. Corporations
Act, s.1017B; Local Government Act 2009;
Superannuation (Industry) Sup. More...
Wellington Capital Limited v Australian Securities
and Investments Commission [2014] HCA 43
CORPORATIONS – Managed investment schemes – Role of
responsible entity under Ch 5C of Corporations Act 2001
(Cth) – Construction of scheme constitution – Where
responsible entity granted all powers "legally possible"
for person or corporation to have – Where responsible entity
made in specie distribution of scheme property to unit holders
– Whether distribution beyond responsible entity's powers
under scheme constitution. Trusts – Managed investment
schemes – Responsible entity as statutory trustee
–Whether general principles of law relating to trusts apply
to responsible entity's functions under scheme constitution.
Practice and procedure – Federal Court of Australia –
Where Federal Court made declaration that responsible entity had no
power under scheme constitution to distribute scheme property to
unit holders – Where unit holders not represented in appeal
– Whether Federal Court erred in exercising discretion to
make declaration. More...
Hannover Life Re of Australasia Ltd v Wright
[2014] FCA 1163
SUPERANNUATION – whether, in the particular circumstances of
the present case, the Superannuation Complaints Tribunal had the
power to redraft an exclusion clause imposed as a term and
condition of additional optional death and disablement cover
offered by the trustee of a superannuation fund under insurance
arrangements put in place by that trustee with a reinsurer in
circumstances where the reinsurer insisted upon the inclusion of
that particular exclusion clause relying upon the terms and
conditions of the policy entered into between it and the trustee.
More...
Legislation
Acts
Counter-Terrorism Legislation Amendment (Foreign
Fighters) Act (No. 116 of 2014)
An Act to amend the law relating to counter terrorism. Registered
6 November 2014 / Date of Assent 3 November 2014. More...
Anti-Money Laundering and Counter-Terrorism
Financing Act 2006 (No. 169 of 2006)
Proposed amendment by Freedom of Information Amendment (New
Arrangements) Bill 2014 and Counter-Terrorism Legislation Amendment
(Foreign Fighters) Bill 2014. More...
Regulations
ASIC Class Order [CO 14/870]
This instrument amends the ASIC Class Order [CO 11/1227] to allow
providers of retirement estimates to include an estimate of the age
pension which might be available to the member along with the
member's superannuation benefit at retirement, and to make
other minor technical amendments. Registered 13 November 2014. More...
ASIC Class Order [CO 14/1118]
This class order amends the ASIC Class Order [CO 12/749] by
extending the relief from the shorter PDS regime, that was due to
expire on 30 June 2015, to 30 June 2016 pending the outcome of the
Financial System Inquiry and further work by the Government on the
shorter PDS regime. Registered 5 November 2014. More...
This publication does not deal with every important topic or change in law and is not intended to be relied upon as a substitute for legal or other advice that may be relevant to the reader's specific circumstances. If you have found this publication of interest and would like to know more or wish to obtain legal advice relevant to your circumstances please contact one of the named individuals listed.
