Australia: Superannuation & Funds Management - What's News - 15 July 2014

In the media

The Financial System Inquiry – Interim Report
FSI – 15 July 2014 – The Financial System Inquiry Interim Report was released on 15 July 2014. An online version is available on the Financial System Inquiry website at http://fsi.gov.au/publications/. As previously advised, to coincide with the release, the Chair Mr David Murray AO addressed the National Press Club on 15 July 2014. More...

In consumers' best interests for Senate to disallow financial advice regulations
ISA – 11 July 2014 – Industry Super Australia (ISA) calls on the Senate to disallow financial advice regulations, which have bewildered consumers and reduced confidence in financial advice. Important consumer protections have been removed from financial advice laws by the Government, through surgical use of fine print and caveats. More...

Japan ties open new doors for fund managers
MEDIA – 10 July 2014 – Australian funds managers will gain cross-border access, and the financial services sector will benefit from the Japan Australia Economic Partnership Agreement (JAEPA), the Financial Services Council said. More...

AIST welcomes crackdown on fee disclosure
MEDIA – 10 July 2014 – The Australian Institute of Superannuation Trustees (AIST) has welcomed efforts by ASIC to eradicate misleading fee disclosure practices in the super and managed investment industry. More...

Government flags end to industry fund exemptions
MEDIA – 9 July 2014 – Finance minister Mathias Cormann says the government will consider ending opt-in and disclosure exemptions for industry super funds should the Senate vote down the FOFA amendments. More...

ASIC warns on non-disclosure
MEDIA – 9 July 2014 – ASIC has identified several issues that lead to the non-disclosure of fees and costs across the superannuation and investment management industries, in a recent report, Fee and Cost Disclosure: Superannuation and Managed Investment Products, identified inconsistencies in reporting fees in underlying investments, variations in data quality and performance fee reporting. More...

Fine print will bewilder consumers
ISA – 9 July 2014 – Consumer protections have been removed from financial advice laws by the Government through surgical use of fine print and caveats through regulations that took effect on
1 July 2014. The loopholes will bewilder consumers and reduce confidence in financial advice. More...

AUSTRAC enhances trans-Tasman cooperation
DEPARTMENT OF JUSTICE – 8 July 2014 – Australia has strengthened trans-Tasman cooperation in the fight against money laundering and terrorism financing, signing a new Memorandum of Understanding (MoU) with New Zealand. More...

ASIC reports on fee disclosure practices for super and managed investments
ASIC – 8 July 2014 – ASIC today released a report on the review of fee and cost disclosure practices in the superannuation and managed investment industry. ASIC undertook a review in order to understand the practices used by industry and to identify any gaps which may lead to underreporting of fees and costs. More...

Industry funds face FOFA rope-in
MEDIA -8 July 2014 – Industry funds might find themselves tipped into the same opt-in and fee disclosure regime as financial planners if the Federal Government fails to have its Future of Financial Advice (FOFA) changes signed off by the Senate. More...

APRA: Draft reporting standards for select investment options
APRA – 7 July 2014 – Draft Superannuation reporting requirements for select investment options – July 2014. More...

New ASFA analysis reveals the real story about where super tax concessions flow
ASFA – 3 July 2014 – A report released by the Association of Superannuation Funds of Australia (ASFA) today provides a clear picture of where superannuation tax concessions flow. The report found that the tax concessions applied to concessional superannuation contributions are not significantly skewed towards high-income earners, and, in fact, support the bulk of the working community to save for their retirement. More...

Nine ways sales incentives have been brought back to financial advice
ISA – 3 July 2014 – Industry Super Australia (ISA) has identified nine ways the Government's regulations have brought back commissions and other incentives for financial advisers to sell superannuation and other products to Australians. More...

Commonwealth Bank offers customers review of dodgy financial advice
MEDIA – 3 July 2014 – A Senate report handed down last week found the bank responsible for customers losing hundreds of millions of dollars and called for a royal commission into the scandal. In response, CBA has committed to offering a free assessment to customers who received advice from Commonwealth Financial Planning and Financial Wisdom between September 2003 and July. More...

Amended FOFA regulations finalised
MEDIA - 2 July 2014 – Treasury has put in place a raft of regulations in line with the government's previously announced amendments to FOFA. The new regulations were finalised on 26 June and registered yesterday. The main changes in the regulation apply to conflicted remuneration, grandfathering, the best interests duty and ongoing fee arrangements. More...

Corporate Governance Principles and Recommendations (Third Edition)
The current version of the Council's Corporate Governance Principles and Recommendations (Third Edition) released on 27 March 2014 takes effect for a listed entity's first full financial year commencing on or after 1 July 2014.

FOFA amending regulation registered 2 July 2014
The Corporations Amendment (Streamlining Future of Financial Advice) Regulation 2014 has been registered to give effect to the government's proposed amendments to the FOFA legislation. To the extent possible under the primary legislation, the Regulation makes these interim changes until the Corporations Amendment (Streamlining of Future of Advice) Bill 2014 passes the Australian parliament and receives Royal Assent.

ASIC CO 13/762 effective from 1 July 2014
Investor directed portfolio services provided through a registered managed investment scheme must meet the new requirements, including having appropriate corporate structures and compliance arrangements, additional policies (e.g. voting policies and policies when consumers do not opt-in to continuing to receive advice); ensuring investors have access to a product issuer's internal dispute resolution system. More...

Insight Issue 1 2014
APRA – 30 June 2014 – In this issue: Superannuation industry overview, MySuper authorisation and Operational due diligence of investment managers. More...

APRA: FAQs about the reporting framework for superannuation
APRA – 30 June 2014 – APRA has updated FAQs which contain matters that are covered in the final reporting standards, forms and instructions. More...

Lodgment of statements by superannuation providers in relation to superannuation plans
Lodgment of statements by superannuation providers in relation to superannuation plans (other than self managed superannuation funds) for each financial year ended 30 June in accordance with the Taxation Administration Act 1953. This instrument describes the lodgment of Member Contributions Statements. More...

Legislation

Commonwealth

Superannuation Supervisory Levy Imposition Determination 2014
2/07/14 183R1037 - This determination sets out the amount payable by superannuation entities in 2014-15 under the financial institutions supervisory levies. More....

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.