In the media
Annual concessional caps in the spotlight
MEDIA – 18 September 2014 – The annual concessional
contributions limit could be replaced with a lifetime cap if the
Federal Government accepts the proposals of the superannuation
industry.
More...
Record-keeping obligations updated
ASIC – 18 September 2014 – Financial advisers'
record-keeping obligations have been updated, following industry
consultation. ASIC has been actively monitoring record keeping by
AFS licensees and, where AFS licensees have failed, has taken
action.
More...
Trustees missing a trick on APRA
reporting
MEDIA – 18 September 2014 – A vast majority of
superannuation funds are failing to re-use their APRA reporting
data internally, a new survey has found. The survey in August of
superannuation finance managers who are charged with submitting
APRA forms, and found that 63% of super funds were treating their
APRA reporting requirements as "mostly tactical".
More...
FSC calls for legacy product reform
MEDIA – 18 September 2014 – The Financial Services
Council (FSC) has called on the government to reform regulation
around product rationalisation, labelling the current $22.6 billion
in legacy insurance and super products a "substantial
drag" on the industry.
More...
PwC urges government to "accommodate" Chinese
investment
MEDIA – 18 September 2014 – Australia's foreign
investment settings must accommodate China's growing needs,
argues PricewaterhouseCoopers. The latest Trends in M&A: China
outbound deals report, PwC found the value of Chinese deals in
Australia grew by 42% to US$2.4 billion, offering great
opportunities for Australia.
More...
ASIC update on financial advice stakeholder
engagement
ASIC – 17 September 2014 – ASIC reports on the results
of two financial advice industry engagement projects conducted
during the 2013–14 financial year. These projects allow ASIC
to focus future regulatory actions on areas that the industry
identifies as posing higher risks.
More...
Avoiding a super fraud
MEDIA – 17 September 2014 – It was only a couple of
years ago when the collapse of the Trio Capital left 6,000 people
without their superannuation savings. Around $180 million of
investors' money was lost. Australia's $1.8-trillion
superannuation industry is increasingly being targeted by
criminals. More...
Almost half the population don't understand the
insurance in their super fund
ASFA – 17 September 2014 – Following research that
shows many Aussies do not understand insurance within their
superannuation (super), the Association of Superannuation Funds of
Australia (ASFA) is urging all fund members to check the insurance
they currently have within their super fund to make sure they have
the right cover for their needs.
More...
ASIC flags breach crack-down
MEDIA – 17 September 2014 – The Australian Securities
and Investments Commission (ASIC) has issued a further warning
about poor culture within financial planning organisations and
urged that remuneration incentives be based on good culture rather
than sales.
More...
ASIC "satisfied" with platform
compliance
MEDIA – 17 September 2014 – Following a review of
platform operators implementing the RG 148 requirements, ASIC
commissioner Greg Tanzer said the new requirements have generally
been well received. ASIC noted that there were some implementation
and transitional issues which will require further monitoring by
ASIC.
More...
ASIC chairman backs portfolio holdings
disclosure
MEDIA - 16 September 2014 – Australian Securities and
Investments Committee (ASIC) chairman, Greg Medcraft has come out
strongly in favour portfolio holdings disclosure obligations for
superannuation funds.
More...
Super fees are competitive and could go lower with the
right policy options – FSC Financial System Inquiry
submission
MEDIA – 15 September 2014 – Superannuation fees in
Australia are comparatively low on a global scale and could be even
lower with the right policy settings the Financial Services Council
said today. At 0.85%, MySuper fees are competitive on a comparative
international basis and could be further reduced if the right
policy settings are in place.
More...
Self-Managed Super the epitome of superannuation
engagement
INSTITUTE OF CHARTERED ACCOUNT – 12 September 2014 –
Australia's 534,000 SMSFs and their one million members
contribute significantly to the overall success of the
superannuation sector and should be celebrated according the
ATO's deputy assistant commissioner of superannuation.
More...
Mandatory ethics training proposed for
planners
MEDIA – 11 September 2014 – Ethics classes for
financial planners should be fundamental to proposed new education
standards, with self-regulation a near impossible benchmark for the
profession, two industry bodies have said.
More...
Quarterly SMSF statistical report
released
AUSTRALIAN TAXATION OFFICE – 10 September 2014 – The
ATO has released its quarterly self-managed superannuation fund
(SMSF) statistical report for June 2014. According to the report,
there are estimated to be more than 534,000 SMSFs with total assets
of $557 billion, an increase of 6 and 12.5% respectively since June
2013.
More...
ISA and AIST joint submission on proposals to lift the
professional, ethical and education standards in financial
advice
ISA – 10 September 2014 – ISA and AIST made a joint
submission to the Parliamentary Joint Committee on Corporations and
Financial Systems Inquiry into proposals to lift professional,
ethical and education standards in the financial services industry.
More...
Time to shift focus onto net returns, urges
AVCAL
AUSTRALIAN PRIVATE EQUITY AND VENTURE CAPITAL ASSOCIATION LTD
– 10 September 2014 – Australia's superannuation
fee debate should be reset, and the focus shifted towards overall
investment performance and net returns, according to the second
round submission to the Financial System Inquiry by AVCAL.
More...
Insurance premiums hit industry funds
MEDIA – 9 September 2014 – Not-for-profit super funds
have "borne the brunt" of rising insurance premiums,
being more adversely affected than the retail or corporate super
sectors, new research has found.
More...
FOFA amendments before the Senate as vertical
integration in financial planning examined
GOVERNANCE INSTITUTE – 9 September 2014 – The
Corporations Amendment (Streamlining of Future of Financial Advice)
Bill 2014, which was passed in the House of Representatives despite
significant opposition from a range of parties, including the
financial planning industry, has been referred again to the Senate
Economics Legislation Committee for inquiry.
More...
APRA: 12 new technical FAQ's on Superannuation
reporting
APRA – 8 September 2014 – APRA's reporting
frequently asked questions (FAQs) provide timely guidance on
commonly asked reporting related questions. The FAQs are designed
to clarify reporting issues raised by RSE licensees and to assist
them in meeting their reporting obligations. APRA encourages
licensees to report to APRA in accordance with the FAQ guidance, to
the extent practicable.
More...
Report 408: Review of the implementation on RG148:
Platforms that are managed investment schemes
ASIC – 16 September 2014 (released) – The feedback
ASIC received and a class order modifying the law to reflect the
updated obligations.
More...
Report 407: Review of the financial advice
industry's implementation of the FOFA reforms
ASIC – 17 September 2014 (released) – This report
presents the findings from an ASIC review of the implementation of
the FOFA reforms by 60 AFS licensees. Key findings in REP 407
include: Impact of FOFA on adviser numbers, products and services,
conflicted remuneration and compliance challenges and risks.
More...
RG 148: Platforms that are managed investment
schemes
ASIC – 16 September 2014 – The report reminds platform
operators about some important obligations, including: management
of conflicts of interest to ensure there is appropriate avoidance,
management and disclosure in relation to the conflicts inherent in
platform structures and timely breach reporting in accordance with
s912D and Regulatory Guide 78 Breach reporting by AFS
licensees.
More...
FOFA reform implementation
ASIC – 18 September 2014 – ASIC has released Report
407 Review of the financial advice industry's
implementation of the FOFA reforms (
REP 407), which presents the findings from an ASIC review of
the implementation of the FOFA reforms by 60 AFS licensees.
More...
APRA: discussion paper and draft amendments to
Prudential Standard APS 110 Capital Adequacy (APS 110) and
Prudential Standard APS 330 Public Disclosure (APS
330)
APRA – 18 September 2014 – The draft reporting
standards and Discussion Paper seeking views on reporting standards
for all RSE licensees to report information in respect of certain
non-MySuper investment options, which are referred to as select
investment options. The Discussion Paper includes issues such as
the definition of 'select investment option', proposed
reporting changes, and draft forms. More...
New AUSTRAC compliance guide
AUSTRAC – 18 September 2014 – The AUSTRAC compliance
guide consolidates a range of AUSTRAC guidance material and
replaces the AUSTRAC regulatory guide. More...
AIST submission: Treasury Legislative Amendment –
Deregulation
AIST – 17 September 2014 – AIST's submission
addresses Schedule 1 which seeks to repeal the reporting on
payslips of superannuation contributions, a measure implemented as
part of the Securing Super changes.
More...
ASIC: industry implementation of platforms guidance
report
ASIC – 16 September 2014 – The report on our review of
the implementation of updated Regulatory Guide 148 Platforms
that are managed investment schemes (
RG 148) by platform operators, reminds platform operators about
some important obligations.
More...
ASIC: review of breach reporting by AFS
licensees
ASIC – 16 September 2014 – ASIC announces a review in
response to concerns about inconsistencies and delays in reporting
significant breaches. Regulatory Guide 78 Breach reporting by
AFS licensees (
RG 78) states that the reporting period starts on the day the
AFS licensee becomes aware of a breach or likely breach that it
considers could be significant. More...
Superannuation, Investment Management and Retirement
Policy: FSC
FSC – 15 September 2014 – Financial Services Council
submission to the Financial System Inquiry – Phase Two
Superannuation, Investment Management and Retirement Policy.
More...
Cases
Allco Funds Management Limited (Receivers and
Managers Appointed) (In Liquidation) -v- Trust Company (RE
Services) Limited (in its capacity as responsible entity and
trustee of the Australian Wholesale Property Fund) [2014]
NSWSC 1251
EQUITY – COMPANIES – Fiduciary duty of directors to
avoid conflicts of interest – Corporations Act 2001 (Cth) ss
181, 187 and 601FD – obligation of directors to act bona fide
in the best interests of the company for a proper purpose and not
improperly to use their position to gain an advantage for another
person – UNCONSCIONABLE CONDUCT – Australian
Securities and Investments Commission 2001 (Cth) ss 12CA and
12CB – where plaintiff held units in a registered managed
investment scheme – where two of its directors were also
directors of the responsible entity of the scheme – where
both were subsidiaries of the same holding company – where
those directors committed the plaintiff to agreements with the
responsible entity which converted its equity into a loan with a
fixed repayment date and then committed the plaintiff to an
amending agreement which removed the fixed repayment date –
whether the directors acted in a situation where their duties to
both entities were in conflict – whether the directors acted
bona fide in the best interests of the plaintiff and for a proper
purpose – whether the responsible entity has acted and
continues to act unconscionably by treating the plaintiff as a bare
lender rather than an equity holder – REMEDIES –
plaintiff seeks rescission of the amending agreement only –
HELD – the directors were in a position of conflict –
the transactions were not bona fide in the best interests of the
plaintiff or for a proper purpose and they improperly used their
positions to gain an advantage for another person – plaintiff
entitled to rescission of the amending agreement but only on
condition that the original loan agreement is also rescinded
– HELD – unconscionable conduct as alleged not
established. More...
Legislation
Commonwealth
Corporations Amendment (Statements of Advice) Regulation
2014
SLI 2014 No. 134
This regulation amends the Corporations Regulations 2001 to make a
number of amendments to the financial disclosure requirements. The
amendments relate to Part 7.7 of the Act: the financial disclosure
requirements provisions. In particular, the amendments alter some
of the provisions regarding the Statement of Advice, a disclosure
document which generally must be provided to retail clients
receiving personal financial advice (8 September 2014). To be
ceased 2 January 2015. More...
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