In the media
FSC policy compounds APRA 'weakness':
academic
MEDIA – 14 September 2012 - The Financial Services
Council's (FSC) draft Standard of Superannuation Governance
Policy compounds the weaknesses in the standards on board
independence by APRA, a corporate governance academic has stated.
The FSC's draft will let banks or insurers appoint directors to
board of RSE licensees who may be members of the board of the
listed bank or insurer.
More...
Shorten defends low-income super
contribution
MEDIA- 14 September 2012 - Amid speculation that some parts of the
super tax system may be called on to fund recent health and
education projects, Minister for Financial Services Bill Shorten
has declared the rebate for low-income earners safe. Minister
Shorten said the low-income super contribution (LISC), which
commenced on 1 July 2012, will build the wealth of some 3.6 million
of the lowest paid workers by almost $1 billion a year. More...
Regulator may win power to fire foreign bank boards
during crisis
MEDIA – 13 September 2012 - The banking regulator could
gain the power to sack the boards of foreign-owned banks operating
in Australia in times of crisis, under sweeping new proposals
released by the government. The $1.4 trillion superannuation
industry could also face tougher restrictions, with the proposed
rules letting regulators remove individual trustees or directors
who threaten financial stability.
More...
APRA needs a bigger tool kit
MEDIA – 14 September 2012 - In the released Treasury
paper which questions the mostly undeclared method of dealing with
the failure of banks, Strengthening APRA's Crisis Management
Powers, the paper, recommends a host of changes to the legislation
under which APRA operates, to ensure it has sweeping power to
swiftly intervene when needed.
More...
Strengthening APRA's crisis management
powers
DEPARTMENT OF THE TREASURY - 12 September 2012 - The Government
has released this paper seeking stakeholder views on a range of
options directed primarily at strengthening Australia's
framework for financial regulation.
More...
Financial Services Council rejects criticism of its
super governance policy
FINANCIAL SERVICES COUNCIL – 12 September 2012 - The
Financial Services Council has rejected the criticism of its
Superannuation governance policy as uninformed and incorrect,
stating their superannuation governance policy adopts ASX Corporate
Governance Council, Corporations Act and APRA definitions of
independence.
More...
Governance and disclosure must place interests of
members first
INDUSTRY SUPER NETWORK – 12 September 2012 - A new
Financial Services Council policy on superannuation governance
proposes to allow retail super funds to appoint 'in-house'
directors to their boards and therefore fails to address one of the
major governance issues for retail super funds, namely the tension
between their legal obligation to maximise shareholder returns
according to the Industry Super Network.
More...
Move to ramp up finance regulator's
power
MEDIA – 12 September 2012 - Proposals released in a
discussion paper today to muscle up the Australian Prudential
Regulation Authority's powers and reduce red tape by
simplifying its regulatory powers across the various acts it
administers, will spark huge interest within the industry between
now and the December closing date for submissions.
More...
Proposed amendments to clearing and settlement
facilities guidance
11 September 2012 – The regulator has issued a
consultation paper proposing amendments to our regulatory guidance
for clearing and settlement facilities to take into account updated
international standards and recent Council of Financial Regulators
policy.
More...
Review of risk management in the funds management
sector
ASIC – 10 September 2012 – The regulator has
emphasised the importance of responsible entities in the funds
management sector maintaining adequate risk management systems
following a proactive review.
Review of risk management in the funds management sector
Superannuation promises fall short for
COSBOA
SUPERREVIEW – 11 September 2012 - The Council of Small
Business of Australia (COSBOA) has demanded superannuation funds
take more responsibility for the contributions process from small
business owners.
More...
SPAA warns against further changes to
superannuation
SPAA – 10 September 2012 - SMSF Professionals
Association of Australia has warned against further changes to
superannuation following media reports that the Federal Government
was considering cutting tax breaks, particularly for self managed
super funds, to pay for its policies on education and disability.
More...
Super Roundtable agrees to promote Small Business
Clearing House
BILL SHORTEN – 07 September 2012 - The Gillard
Government made further progress towards smarter, simpler, and
fairer superannuation with the fourth meeting of the Superannuation
Roundtable. A key outcome was that the Roundtable representatives,
including those representing accountants, the not-for-profit sector
and the super industry, agreed to a COSBOA proposal to better
promote the Government's small business clearing house.
More...
Australia's superannuation reporting ineffective:
CPA Australia
CPA – 05 September 2012 - Reporting by most of
Australia's $1.4 trillion superannuation industry remains
ineffective in enlightening members about the performance of their
superannuation funds and in enabling members to better understand
the management of their retirement savings, says CPA Australia
Policy Adviser (05 September 2012). Practical issues exist in
unraveling the complex business structures within which
superannuation entities operate to extract the relevant information
for disclosure.
More...
FSC Superannuation Governance Policy
Author: Financial Services Council (FSC): ISN Briefing Note
A draft Standard on Superannuation Governance Policy (September
2012).
More...
Consultation paper on APRA's resolution
powers
The Minister for Financial Services and Superannuation has
released for public consultation a paper titled Strengthening
APRA's Crisis Management Powers which seeks comments on a range
of options to enhance Australia's financial sector,
particularly prudential regulation.
The consultation paper can be accessed here. Strengthening APRA's Crisis Management Powers
The closing date for submissions is 14 December 2012 (12
September 2012).
http://www.treasury.gov.au/ConsultationsandReviews/Submissions/2012/APRA
ASIC review: risk management in the funds management
sector
ASIC has emphasised the importance of responsible entities in the
funds management sector maintaining adequate risk management
systems following a proactive review. The findings of ASIC's
review are contained in Report 298 Adequacy of risk management
systems of responsible entities ASIC has also indicated its
intention to develop good practice guidance on risk management
systems for responsible entities in 2013 (10 September 2012).
Review of risk management in the funds management sector
Cases
Denehy and Superannuation Complaints Tribunal and FSS
Trustee Corporation as Trustee for The First State Superannuation
Scheme [2012] AATA 608
FREEDOM OF INFORMATION - Request to Superannuation Complaints
Tribunal for documents obtained from superannuation fund and its
trustee in course of review of complaint - exemptions claimed -
unreasonable disclosure of personal information – legal
professional privilege – unreasonable disclosure of
business affairs – whether document can be released with
appropriate deletions of irrelevant or exempt material –
decision varied.
FREEDOM OF INFORMATION – Legal professional privilege -
whether privilege abrogated by statute - no abrogation –
whether production under mistaken belief that required waived
privilege – privilege not waived.
FREEDOM OF INFORMATION – Context in which information
obtained by Superannuation Complaints Tribunal and restrictions on
its disclosing information relevant in assessing whether disclosure
under FOI Act unreasonable.
FREEDOM OF INFORMATION – Statutory regulation of trustee
and its statutory obligations to disclose information relevant in
assessing whether disclosure under FOI Act unreasonable.
More...
Whitfield and Commonwealth Superannuation Corporation
[2012] AATA 613
MILITARY SUPERANNUATION - Applicant required to elect whether or
not to become a member of Military Superannuation Benefits Scheme
prior to resuming service - Respondent did not receive election
form by due date - Ceased membership of Defence Force Retirement
and Death Benefits at relevant date - Automatic transfer to
Military Superannuation Benefits Scheme - Overpaid pension - Debt
waived - Decision under review is set aside. More...
Communications, Electrical, Electronic, Energy,
Information, Postal and Allied Services Union of Australia v Dee
Vee Pty Ltd [2012] FCA 988
INDUSTRIAL LAW – Allegation that termination constituted
adverse action in contravention of the Fair Work Act 2009 (Cth) -
applicants alleged that Dee Vee had terminated Mr Damen's
services because he had exercised his right to assert an
entitlement to superannuation payments and higher remuneration,
because he was a member of the Union and/or that he had engaged in
or proposed to engage in industrial activity in pursuit of his
claims to be entitled to benefits under the Award. More...
Legislation
Commonwealth
Legislative Instruments
Anti-Money Laundering and Counter-Terrorism Financing
Rules Amendment Instrument 2012 (No. 4)
These rules amend the Anti-Money Laundering and Counter-Terrorism
Financing Rules Instrument 2007 (No. 1) to amend chapters 27, 51,
56, 57 and 63 and add a new chapter 68. Administered by:
Attorney-General's Made 04 Sep 2012 Registered 06 September
2012. More...
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