In the media
Update on Stronger Super regime
ASIC – 1 May 2015 – ASIC today provided an update on
aspects of the Stronger Super regime. The start date for portfolio
holdings disclosure reporting and choice product dashboard
requirements will be deferred until 1 July 2016 to allow the
Federal Government further time to consult on the detail of the
requirements.
More...
Suspended SIV scheme raised $3 billion
MEDIA – 30 April 2015 – More than $3 billion has been
invested in Australia via the Significant Investor Visa
(SIV) program, which was temporarily suspended
last week. The SIV program was temporarily closed to new
applications on 24 April 2015 and new changes to the program are
expected to be announced by the government in May. More...
Superannuation trustees under the spotlight:
APRA
MEDIA – 30 April 2015 – Some of the trustees of APRA
regulated super funds lack understanding of their fund's
investment strategy and underlying investments, according to
Australian Prudential Regulation Authority (APRA)
member Helen Rowell. More...
Frydenberg to decide on advice standards in
June
MEDIA – 30 April 2015 – Assistant Treasurer Josh
Frydenberg is expected to release a final document outlining the
measures to improve professional standards for financial advisers
at the end of June. Participants in the recent roundtable also
emphasised the importance of sensible transitional mechanisms,
robust governance, sustainable funding and achieving enduring
reform. More...
ASIC homes in on intra-fund advice
MEDIA – 30 April 2015 – ASIC had conducted proactive
surveillance work into superannuation in order to develop a clearer
picture surrounding the provision of intra-fund advice, the
corporate watchdog said yesterday.
More...
APRA releases super reporting standards
MEDIA – 29 April 2015 – The APRA has released 31
reporting standards for the superannuation industry, five of which
are still open for further consultation. The final reporting
standards will commence on 30 June 2015 or 1 July 2015. More...
Super lump sum myth debunked
MEDIA – 29 April 2015 – Only 16.7% of superannuation
assets are withdrawn as a lump sum when members hit retirement,
recent analysis from Rice Warner shows. More...
Advisers Register hits 22k
MEDIA – 29 April 2015 – Within a month of being
launched the Financial Advisers Register has added about 3,000
advisers to its list, now providing consumers with an ability to
search more than 22,000 in the industry. More...
Robo-advice to bring regulation
challenges
MEDIA – 29 April 3 2015 – Financial services
regulators needed to be prepared for the challenges that would
arise as robo-advice and the consumer demand surrounding it
increased in Australia, a number of industry experts said. More...
The super system – what is on APRA's
watch-list?
APRA – 29 April 2015 – APRA Member Helen Rowell's
speech to the AFR Banking & Wealth Summit, Sydney.
More...
Obsession with fees "ill-conceived":
SuperRatings
MEDIA – 28 April 2015 – Contrary to the approach
adopted by the Financial System Inquiry (FSI),
fees are not the most important factor to consider when comparing
super funds, argues researcher SuperRatings.
More...
Observations on the Financial System
RESERVE BANK OF AUSTRALIA – 28 April 2015 – Reserve
Bank of Australia Governor Glenn Stevens addresses the Australian
Financial Review Banking & Wealth Summit, Sydney regarding
Observations on the Financial System. More...
Harvesting the opportunities from financial innovation:
How can ASIC help you?
ASIC – 28 April 2015 – ASIC Chairman Greg Medcraft
addresses the Australian Financial Review Banking and Wealth
Summit, Sydney.
More...
Achieving a stable and competitive financial
system
APRA – 28 April 2015 – Speech delivered by Wayne
Byrnes, Australian Financial Review Banking & Wealth Summit,
Sydney.
More...
ASFA: New consumer superannuation advice services fact
sheet
ASFA – 28 April 2015 – ASFA has released a new fact
sheet designed to help guide superannuation fund members through
the different levels and types of financial advice available about
their superannuation. The fact sheet is available via the
independent Super Guru
website.
More...
APRA: package of superannuation reporting standards
released
APRA – 28 April 2015 – APRA has today released 31
reporting standards for the superannuation industry, including five
reporting standards released for consultation. The 26 final
reporting standards released today incorporate minor changes from
the material covered in these FAQs. These final standards commence
on either 30 June 2015 or 1 July 2015, as specified in each
standard.
More...
Australian super fund regains top spot in global climate
index
THE CLIMATE INSTITUTE – 27 April 2015 – Government
Super Fund and AustralianSuper are among the nine global funds with
an AAA rating in the index. But overall the index this year paints
a disturbing picture of the inadequate management of climate risks
to Australians' retirement nest eggs.
More...
FPA: National Roadshows support advisers with retirement
planning
FPA – 27 April 2015 – The 2015 FPA National Roadshows,
which will visit 33 locations across the nation during April, May
and June, focus on best practice in retirement planning and advice
on industry reforms. The aim of the current series of Roadshows is
to equip advisers with a workbook of strategies and tools that can
be tailored to their clients' specific retirement goals.
More... More...
Scrapping super safety net would snare employers in $1.8
billion red tape tangle
INDUSTRY SUPER AUSTRALIA – 24 April 2015 – A majority
of employers are concerned at the red tape cost of being forced to
select a workplace super fund for employees from an unranked list
of 120 MySuper funds. New research estimates the cost to be as high
as $1.8 billion nationally, falling most heavily on small business.
More...
FSC rejects FSI super fees analysis
MEDIA – 23 April 2015 – The FSC has questioned the
data upon which the FSI's recommendation on super fees and
competition is predicated, warning the government to view it with
caution.
More...
Debate on super tax concessions welcome but needs to be
considered in context
ASFA – 22 April 2015 – changes to the superannuation
system should been considered as part of the broader taxation
framework and the Association of Superannuation Funds of Australia
(ASFA) will be actively participating in the
Government's tax discussion paper process.
More...
Emphasis on fairness and sustainability is a welcome
contribution to superannuation tax debate
AIST – 22 April 2015 – AIST CEO, Tom Garcia said AIST
welcomed Labor's emphasis on improving the fairness and
sustainability of Australia's super system and its recognition
of the need to better target tax concessions. It addresses some of
the key issues around fairness and sustainability.
More...
Industry responds to Grattan report
MEDIA – 22 April 2015 – Industry Super Australia and
the Association of Superannuation Funds of Australia
(ASFA) have responded to the latest Grattan report
on superannuation fees. More...
Bi-partisan agreement needed on super tax
concessions
INDUSTRY SUPER AUSTRALIA – 22 April 2015 – There is
now an emerging consensus that superannuation tax concessions need
to be more efficient and better targeted to deliver a sustainable
and fair super system. A bi-partisan approach is essential: firstly
to produce a clear objective for superannuation and then to
calibrate tax concessions to achieve this objective.
More...
FSC Statement on Opposition's announcement on
super
FSC – 22 April 2015 – The Financial Services Council
said today that the Intergenerational report has shown that
Australia's ageing population will continue to place pressure
on the Federal Budget. A national retirement policy should include
super, the old age pension system, social security, housing and
aged care systems. None of which should be considered in isolation.
More...
FSC Statement on FSI: Submission to
Treasury
FSC – 22 April 2015 – The FSC released its submission
to Treasury on the final report of the Financial System Inquiry.
Key FSC recommendations cover Financial Advice; Funds Management;
Life Insurance; Superannuation; FWC process; Governance.
More...
Bank-owned super funds underperformance a drag on
Australia's super system
MEDIA – 21 April 2015 – SuperRatings' monthly data
has once again demonstrated better long term average returns
delivered by industry super funds to their members over three,
five, seven and ten year periods to 31 March 2015 when compared
with the bank-owned super fund sector.
More...
APRA speaks on risk management and
governance
APRA – 21 April 2015 – The importance of strong risk
management and governance – was the subject of a speech by
Ian Laughlin, Deputy Chairman of APRA, to the Macquarie University
Financial Risk Day. Mr Laughlin observed that capital management,
risk management and governance are three key elements that are
required if an institution is to be prudentially sound.
More...
ASFA Submissions
ASFA – 21 April 2015 – Consultation on update on
regulatory costs savings – February 2015. More...
Super reform needed to drive lower fees – FSC
Statement on the Grattan Report
FSC – 20 April 2015 – The Financial Services Council
welcomes the Grattan Report on superannuation released today.
Superannuation fees are higher than they should be. Reforms to both
governance and structure of the default superannuation system are
needed to drive competition, create larger super funds and reduce
duplicate super accounts (19 April 2015).
More... More...
Lower fees, higher returns: how to make superannuation
work for Australians
GRATTAN INSTITUTE – 20 April 2015 – The Government
must act to prevent excessive fees taking at least $40,000 from the
superannuation accounts of millions of Australians at retirement,
according to a new Grattan Institute report.
More...
Large companies vulnerable to activist funds: Credit
Suisse
MEDIA – 20 April 2015 – BHP Billiton, Caltex, CSR and
Woolworths are among major Australian companies that could be
vulnerable to activist funds in the near future, according to a
Credit Suisse report. Analysts believe it is only a matter of time
and size before the largest superannuation funds embrace activism
here.
More...
Merit-based selection process essential for
Australia's "safety net" superannuation
funds
INDUSTRY SUPER AUSTRALIA – 20 April 2015 – The Grattan
Institute Report "Super Savings" adds to the consensus of
other recent reviews that a merit-based selection process is
essential for Australia's default superannuation funds. These
funds provide a safety net of high performing funds for more than
eight million Australians who do not choose their own their own
fund.
More...
ISA Briefing Note – Super safety net abolition
– Employer cost impacts
ISA – April 2015 (release date) – Employers are keenly
aware that most of their employees do not choose their own super
fund, and instead rely on the "default" fund chosen by
the employer. This research sets out the case for retaining and
strengthening the default safety net to protect employers from an
un-wanted and un-needed burden by using a merit based process to
shortlist quality funds which employers can choose from with
confidence.
More...
Financial adviser standards consultation: Lifting the
professional, ethical and education standards in the financial
services industry
Treasury has published a
Consultation Paper in response to proposals by the
Parliamentary Joint Committee on Corporations and Financial
Services' inquiry. The paper discusses: how standards will be
lifted and maintained at a specified minimum level; how minimum
standards will be monitored and enforced; and mechanisms for the
ongoing professionalisation of the industry. Submissions close: 7
May 2015.
Legislation
Commonwealth
ASIC Corporations (Amendment No. 3) Instrument
2015
This instrument amends ASIC Class Order [CO 10/630] to provide
relief from the operation of the current long term superannuation
performance reporting requirements that are proposed to be refined
by proposed amending regulations (28 April 2015). More...
ASIC Superannuation (Amendment No. 1) Instrument
2015
This instrument amends ASIC Class Order [CO 14/509] (24 April
2015). More...
[Draft] Tax and Superannuation Laws Amendment (2015
Measures No. 4) Bill 2015: Consolidation
The attached exposure draft legislation-covers five measures that
were announced in the 2013-14 and 2014-15 Budgets:
- remove a double benefit (or double detriment) that can arise in respect of certain liabilities held by a joining entity that is acquired by a consolidated group
- remove anomalies that arise when an entity joins or leaves a consolidated group where the entity has securitised an asset
- prevent the tax costs of a joining entity's assets from being uplifted where no tax is payable by a foreign resident owner on the disposal of the joining entity in certain circumstances
- clarify the operation of the Taxation of Financial Arrangements provisions when certain intra-group assets or liabilities emerge from a consolidated group because a subsidiary member leaves the group
- remove anomalies that arise when an entity leaves a consolidated group holding an asset that corresponds to a liability owed to it by the old group because the value of the asset taken into account for tax cost setting purposes is not always appropriate.
Submissions opened: 28 April 2015 / Submissions close: 19 May 2015. 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.