In the media
Super performance test needs to define
'underperformance'
The Government's superannuation performance test
proposal needs to define 'underperformance' or it could
have unintended consequences and undermine the super system, the
Association of Superannuation Funds of Australia believes ( 29
October 2020).
More...
Super performance test a 'blunt single-issue
measure'
Australian superannuation funds have been warned of the
risks of tilting equity portfolios to maximise the benefits of
franking credits. Superannuation funds that fail the
Government's proposed investment performance test will be
unable to turn their eight-year performance around in one year,
according to Rice Warner (29 October 2020).
More...
ASIC explains no action position on super advice
The ASIC has revealed it did not take action against
superannuation funds which it identified as having delivered
defective advice but, instead, contacted them an asked them to fix
the problem and then to confirm they had done so (27 October 2020).
More...
Wilson accuses fund execs of insider trading
Economics committee chair Tim Wilson has accused a number
of super fund executives and trustees of using insider information
to benefit at the height of the COVID-19 crisis (26 October 2020).
More...
ASIC confirms focus on advice which is 'limited and
affordable'
The Australian Securities and Investments Commission has
signalled it believes a key objective in making advice more
attractive to consumers is the provision of advice which is
"limited and affordable" (23 October 2020).
More...
ISA: Super tests welcome but must be a lot more
robust
The government plans to introduce performance tests to
weed out the duds and staple people to a fund forever, unless they
choose a different one. Without refinements to make it more robust,
the government's performance test could end up costing many
people hundreds of thousands of dollars from their retirement (21
October 2020).
More...
Economics committee to grill regulators
The standing committee on economics has called ASIC, APRA,
and the ACCC for its first post-budget hearing to ensure the
regulators are keeping a close watch on Australia's financial
system (21 October 2020).
More...
Imminent Hayne reform has major ramifications for
affordability of financial advice and the future of financial
planning
The FPA has warned that the establishment of a single
disciplinary body must be used to reduce red tape and untangle an
unreasonably complex regulatory framework that is stifling the
financial planning profession and driving up the cost of advice (21
October 2020).
More...
Government action needed to avoid lower retirement
living standards
The release of the 2020 Mercer CFA Institute Global
Pension Index, which saw Australia's super system record a drop
in ranking across two key categories, highlights the need for new
policy measures and a commitment from the Government to the
legislated timeline to increase the super compulsory rate to 12%,
the AIST said (20 October 2020).
More...
FSC Media Release: Future of advice report
The Financial Services Council has launched a research
report by Rice Warner which offers some radical ideas for
restructuring the model for financial advice which will start a
policy debate on how to make advice more affordable and accessible
(21 October 2020).
More...
Australia slips in global pension index
Australia's superannuation system has dropped by one
place in its global pension ranking in Mercer's 2020 index,
with the study finding it still has a number of improvements to
make (20 October 2020).
More...
Time's up: AFCA set to end responses extension
The Australian Financial Complaints Authority has warned
that a temporary time extension for handling complaints during the
COVID-19 pandemic is set to come to an end (19 October 2020).
More...
In practice and courts
ASIC regulatory updates
22/10/2020
INFO 101 ;
INFO 103;
INFO 104;
INFO 105;
INFO 109;
INFO 126;
INFO 128;
INFO 140;
INFO 146;
INFO 185 (reissued)
Information sheets related to consumer credit have been updated to:
reflect current ASIC guidance and information; remove references to
transitional arrangements; update penalties information (to account
for legislative
amendments) and replace references to EDR schemes with AFCA, in
INFO 105, clarify our guidance regarding hardship notices and
variations.
APRA new frequently asked questions on the
Superannuation Data Transformation project
The APRA has published new frequently asked questions
(FAQs), which have been added to the Superannuation Data
Transformation (SDT) consultation site. The FAQs outline queries on
the latest release of topic papers for the SDT project. The FAQs
are available on the APRA website
here (27 October 2020).
APRA: weekly data on the superannuation early release
scheme
The APRA has published the latest industry-level and
fund-level data on the temporary early release of superannuation
scheme. The Early Release Initiative statistics for applications
received between 20 April - 18 October 2020 are available on the
APRA website
here (26 October 2020).
APRA reminder: superannuation licensees on upcoming
legislative obligations
Registrable superannuation entity licensees are reminded
of two key regulatory requirements - to undertake a Business
Performance Review by 31 December 2020, and an outcomes assessment
by 28 February 2021. View the letter
here.
AFCA current matters
Union Standard International Group Pty Ltd (Updated October
2020 )
Bendigo and Adelaide Bank Great Southern loans (Updated October
2020 )
ASIC Corporations, Superannuation and Credit (Amendment)
Instrument
Amends the ASIC Corporations and Credit (Internal Dispute
Resolution— Transitional) Instrument 2019/965
to preserve ASIC's existing internal dispute resolution policy
in relation to complaints received by financial firms before 5
October 2021. More...
Cases
Burnell and Australian Securities and Investments
Commission [2020] AATA
4186
CORPORATIONS ACT – financial services –
licensing – authorised representative – banning order
– arranging insurance contracts without an Australian
Financial Services Licence and while not an authorised
representative of a Australian Financial Services Licence holder
involvement in non-compliance with a financial services law –
reason to believe that Applicant is likely to contravene or likely
to become involved in a contravention of a financial services law
– decision affirmed
Administrative Appeals Tribunal Act 1975 (Cth); Australian
Securities and Investments Commission Act 2001 (Cth). Corporations
Act 2001 (Cth).
Australian Securities and Investments Commission v AGM
Markets Pty Ltd (in liquidation) (No 4)
[2020] FCA 1499
CORPORATIONS – offer of derivative products –
contracts for difference – margin foreign exchange contracts
– offering to retail investors in Australia – financial
product advice – financial services – personal product
advice – general product advice – assessment of
pecuniary penalties – redress orders – s 1317G of the
Corporations Act 2001 (Cth) – ss 12GBA, 12GNB and 12GNC of
the Australian Securities and Investments Commission Act 2001 (Cth)
– penalties imposed – redress orders made
Purcell and Commissioner of Taxation
(Taxation) [2020] AATA
4235
TAXATION – excess non concessional contributions to
superannuation – spousal contributions to superannuation
– associated earnings treated as assessable income –
amount of associated earnings – whether calculation of
associated earnings was correct – whether proxy rate is a
penalty – no power vested in the Commissioner to remit amount
calculated as associated earnings – objection decision
affirmed – decision under review affirmed
Legislation
Commonwealth
Bills
Treasury Laws Amendment (2020 Measures No. 4) Bill
2020
House of Representatives 28 Oct 2020
Includes: Schedule 2 –Transitional provisions relating to the
repeal of the Superannuation (Resolution of Complaints) Act
1993Schedule 2 to the Bill amends the AFCA Act to facilitate the
closure and any transitional arrangements associated with AFCA
replacing the SCT.
Act compilation
Superannuation
Guarantee (Administration) Act 1992
27/10/2020 - Act No. 111 of 1992 as amended
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.