Australia: Superannuation & Funds Management - What's News - 17 December 2014

In the media

ASIC consults on proposals to remake "sunsetting" class orders
ASIC – 11 December 2014 – ASIC has released two consultation papers proposing to remake a number of class orders that are due to expire ("sunset") in 2015 and 2016. ASIC proposes to remake these class orders without significant changes before they sunset. More...

MySuper fees "must come down"
MEDIA – 10 December 2014 – Super funds will be under immense pressure to reduce their fees following David Murray's ultimatum to the industry, says Rice Warner chief executive Michael Rice. More...

2020 super review must be comprehensive
MEDIA – 10 December 2014 – Several factors must be considered beyond a reduction in MySuper fees if an inquiry into the effectiveness of the super industry by the Productivity Commission is to go ahead in 2020, according to the superannuation industry peak body. More...

Correction to the FSI Final Report: Financial System Inquiry
GOVERNMENT – 10 December 2014 – A publishing error has been identified in the printed and PDF versions of the Financial System Inquiry Final Report. The error is in Chart 9: Frequency that Interim Report observations were raised in second round submissions on page 289. The labels on the left hand axis were transposed. More...

ISA calls for bank super scrutiny
INDUSTRY SUPER AUSTRALIA – 9 December 2014 – The ISA points to the tension between members' best interests and shareholder returns with respect to bank-owned super funds. More...

Super contribution growth at 7 year high
MEDIA – 9 December 2014 – Discretionary superannuation contributions have seen the "fastest growth" since June 2007, a report from the Financial Services Council (FSC) has found. The FSC Bond Report analysed the performance of the superannuation industry for the September quarter of 2014. More...

Government Cyber Security Strategy already out of date
MEDIA – 9 December 2014 – Financial System Inquiry (FSI) chair David Murray has called for government and other financial system stakeholders to tighten processes to counter the growing threat of cyber-crime. More...

AIG: Statement on the Financial Systems Inquiry final report
AIG – 8 December 2014 – Beyond the purely banking-related recommendations of the Murray review, there are a number of important proposals contained in the Financial System Inquiry's final report that have the potential to benefit industry and boost economic growth. The report makes recommendations to reduce the structural impediments hampering access to finance for Small to Medium Enterprises. More...

SMEs short-changed by Financial System Inquiry: What the 44 recommendations mean
MEDIA – 8 December 2014 – The recommendations are broad, but the key ones impacting small business are those calling for super funds to drop their prices and the government to relax rules around governing crowdfunded equity. More...

A Super Idea: AGMs for Super Funds
POLITICAL STATEMENT – 8 December 2014 – In the wake of David Murray's Financial System Inquiry, Independent Senator for South Australia, Nick Xenophon, foreshadowed changes to superannuation legislation to force super funds to hold AGMs. Currently there is no requirement for a super fund to hold an AGM to allow its members to question the board about the fund's performance. More...

Debate on governance must be evidence based
INDUSTRY SUPER AUSTRALIA - 8 December 2014 – ISA supports the Murray Inquiry's call for bipartisan agreement on the purpose of the superannuation system and states future debate on the governance of superannuation funds needs to be evidence based. More...

Best of the best in Fintech innovation revealed in inaugural report
FSC – 8 December 2014 – The report is the result of a collaboration between AWI, KPMG Australia and the Financial Services Council (FSC) to identify those companies most likely to succeed due to innovative use of technology and driving of disruption within the financial services industry. More... More...

FSI report favours longevity pooling
MEDIA – 8 December 2014 – The Financial System Inquiry final report has recommended superannuation funds make more use of longevity pooling in their retirement products. More...

Super bodies mostly supportive of FSI recommendations
MEDIA – 8 December 2014 – The superannuation industry has applauded the Financial System Inquiry report's proposal to tackle income stream barriers and enshrine super goals. More...

Financial System Inquiry's Murray report calls for major banks to hold more capital
MEDIA – 8 December 2014 – David Murray's Financial System Inquiry (FSI) has made recommendations, opposed by the major banks, to lift their funding requirements. The FSI has expressly rejected research commissioned by the Australian Bankers' Association that put Australia's banks in the top quarter of institutions globally. More...

Address to the Committee for Economic Development of Australia
GOVERNMENT – 8 December 2014 – Address to the Committee for Economic Development of Australia by Mr David Murray AO, "Supporting Australia's Economic Growth", Release of the Final Report of the Financial System Inquiry. More...

SPAA Explanatory Note: The Financial System Inquiry (FSI)
SPAA – 8 December 2014 – The FSI has made 44 recommendations in its final report for the Government to consider. More...

Financial System Inquiry – the final report is in
GOVERNMENT – 8 December 2014 – The much anticipated final report of the Financial System Inquiry (FSI) is in, making 44 recommendations relating to the Australian financial system. Key recommendations you should be aware of include:

Superannuation funds

• Calls for superannuation funds should have forced tender process for the right to manage default savings ( Recommendation 10).
• Calls for self-managed superannuation funds to be banned from borrowing to buy assets such as property and shares ( Recommendation 8).
• Calls for super fund boards to be forced to appoint a majority of independent directors ( Recommendation 13).
• Proposal that trustees should be subject to the same penalties for misconduct as directors of managed investment schemes ( Recommendation 13).
• Calls for super fund trustees to pre-select a comprehensive income product for members' retirement ( Recommendation 11).

Raising financial industry standards

• Proposal to require planners to hold relevant tertiary degrees and prove their competence in specialist areas such as superannuation ( Recommendation 25).

Murray hands down MySuper ultimatum
MEDIA – 7 December 2014 – FSI chair David Murray has set a deadline of 2020 for the MySuper regime to produce results, recommending it should otherwise be scrapped and replaced. More...

ASFA media release: Response to the FSI final report
ASFA – 7 December 2014 – The Association congratulates the Panel and its Secretariat on the release of the Financial System Inquiry (FSI) final report. The report's recommendations are sound, comprehensive and informed and have the potential to provide a blueprint to increase the resilience, efficiency and fairness of the financial system for the next 15 years and beyond. More...

AIST welcomes FSI focus on removing politics from super and giving MySuper a fair go
AIST – 7 December 2014 – The Financial System Inquiry report recognises the need to ensure the super system is working effectively and efficiently and delivering positive retirement outcomes for members. AIST CEO said the key recommendation to enshrine in legislation clear objectives for superannuation was very welcome. More...

Murray urges "accommodative" crowdfunding regulation
MEDIA – 7 December 2014 – The Financial System Inquiry has recommended the government update fundraising regulation to facilitate crowdfunding for debt and equity, and potentially other forms of financing in the future. More...

Murray Report: Consultation process
GOVERNMENT – 7 December 2014 – The Government is consulting on the Inquiry's recommendations before making any decisions, and is calling for written submissions from all stakeholders. The deadline for submissions is 31 March 2015. More...

FOS: Discretionary super contributions highest in 7 years – FSC Bond Report
FINANCIAL SERVICES COUNCIL – 7 December 2014 – The FSC Bond Report – MySuper September 2014. The FSC Bond Report September 2014. More...

New FOS terms of reference approved
SPAA – 5 December 2014 – Financial Ombudsman Service (FOS) has received ASIC approval for a raft of changes to its terms of reference, with the bulk set to come into effect on 1 January 2015. The external dispute resolution (EDR) scheme called for submissions into an independent review late last year and released the findings in March 2014.

Five things the Financial System Inquiry should do (Briefing Note)
INDUSTRY SUPER AUSTRALIA – 5 December 2014 – ISA has developed a series of recommendations for reform that the Financial Systems Inquiry should consider in its final report if we are to set the nation on a pathway to prosperity and meet the challenges of an aging population. More...

Industry super funds set priority areas for Murray Inquiry
INDUSTRY SUPER AUSTRALIA – 4 December 2014 – The ISA has developed a series of recommendations for reform that the Financial Systems Inquiry should consider in its final report. The recommendations call for a plan to tackle conflicts of interest and under-performance of the financial system. More...

APRA: Final Prudential Standard and Prudential Practice Guide on Risk Management
APRA – 4 December 2014 – The package includes final versions of Prudential Standard CPS 220 Risk Management (CPS 220) and Prudential Practice Guide CPG 220 Risk Management (CPG 220) as well as a letter to industry summarising APRA's response to submissions on the most recent consultation. More... More...

Cormann commits to super governance changes
MEDIA – 3 December 2014 – The Government is intent on proceeding with changes to superannuation fund governance to bring them into line with publicly-listed companies. More...

ISA: Infrastructure response welcomed – Super defaults also key
INDUSTRY SUPER AUSTRALIA – 1 December 2014 – The ISA has welcomed the Commonwealth Government's positive response to the Productivity Commission Inquiry into Public Infrastructure by embracing the use of streamlined and innovative bid processes, but warned potential changes to superannuation default settings could undermine future investment. More...

ASIC: Paper open for public comment: CP 224 Facilitating electronic financial services disclosures
Released 14 November 2014. Comments close 16 January 2015. More... More... More...

Legislation

Commonwealth

Tax and Superannuation Laws Amendment (2014 Measures No. 7) Bill 2014
GOVERNMENT – 4 December 2014 – A Bill for an Act to amend the law relating to taxation and superannuation. More...

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