News
MIT Budget inconsistencies spark concern
The surprise doubling of withholding tax for foreign investment in
managed investment trusts, effective 01 July 2012, has been
criticised as inconsistent with the IMR initiative. The
announcement sparked immediate concern over the uncertainty created
for foreign investors, particularly those who have already invested
in Australia on the expectation that the reduced rate of 7.5% would
apply over the term of the investment (10 May 2012) More...
Government Budget Calls for Levy on Superannuations to
Pay for SuperStream Reforms
The government's proposed 2012-13 budget will see an
increase in funding for regulators, aimed at implementing the
Stronger Super and financial advice reforms. The government has
proposed to cover the costs of implementing the administrative
reforms of the SuperStream package by a temporary levy on all
superannuation funds regulated by the Australian Prudential
Regulation Authority (09 May 2012)
More...
Industry broadly critical of Budget
The Federal Budget has received a broadly negative response from
the financial services industry, with financial planning,
accounting and superannuation bodies lamenting the impact of a
range of changes (08 May 2012)
More...
Parliamentary inquiry needed into tax efficient
investments: ASFA
The peak body for superannuation has called for a parliamentary
inquiry into the mobility of tax effective investments in the wake
of the Budget announcement that the contributions tax on super is
set to change. The Association of Superannuation Funds of Australia
(ASFA) said superannuation tax concessions must be set with a
long-term view of ensuring better retirement incomes for ageing
Australians (08 May 2012) More...
Superannuation gets a boost for seniors in Federal
Budget
Boosting superannuation taxes and reducing fees and charges are
the centrepoint of the Government's aim to ensure Australians
live comfortably in retirement. By lifting the superannuation
guarantee rate to 12 per cent, the Government will boost the
retirement savings of 8.4 million workers and increase the pool of
national savings (08 May 2012)
More...
Budget confirms super hit on higher income
earners
The Federal Government has cut the superannuation tax concessions
applying to higher income earners. The Federal Treasurer, Wayne
Swan, has confirmed that the reduced concession will apply to
people earning more than $300,000 and will become effective from 1
July, this year (08 May 2012)
More...
FPA calls on ASIC for clearer advice
definitions
The Financial Planning Association has called on The Australian
Securities and Investments Commission for greater clarity and
definitions of quality advice (02 May 2012) More...
ASIC flags guidance on code approval
ASIC has flagged its intention to publish guidance on approval of
codes in the advice sector, following changes to the FOFA Bill.
Under recent changes, the Australian Securities and Investments
Commission (ASIC) would have the ability to exempt advisers from
the opt-in obligation if the regulator was satisfied that the
adviser was signed to a professional code that 'obviates the
need' for opt-in (02 May 2012) More...
ASIC warns financial services licensees about the use of
the term 'independent'
ASIC has corrected claims made by insurance brokers and financial
planners about the independence of their services. . In recent a
recent surveillance project, ASIC found 21 instances of insurance
brokers and financial planners making statements about the
independence of the licensee or the services they provide in breach
of the Corporations Act (02 May 2012)
More...
ASIC releases policies on adviser training and financial
requirements for carbon financial products
ASIC has released its final policies on adviser training and
financial requirements for entities and individuals providing
financial services in relation to emissions units following a
public consultation. Registration will help providers of financial
services meet their licensing requirements under the Corporations
Act 2001 (02 May 2012)
More...
Release of revised National Carbon Offset
Scheme
A revised National Carbon Offset Scheme (NCOS) has been released
by the Government, allowing Australian businesses to offset their
products with pollution reduction under the Australian
Government's Carbon Farming Initiative (CFI). The Standard
provides guidance on what is a genuine voluntary offset and sets
minimum requirements for calculating, auditing and offsetting the
carbon footprint of an organisation, product or event to achieve
carbon neutrality (02 May 2012)
More...
Exemption for financial advisers providing tax advice
extended
Financial advisers will be granted an extension to their exemption
from the taxation agent services regime until 30 June 2013. This
decision will extend for one year the current exemption, which
expires on 30 June 2012 and will allow for a smooth transition to
the new regulatory regime (30 April 2012)
More...
Future of advice post FoFA
Author: Peter Kell, Commissioner, Australian Securities and
Investments Commission
Speech to the Association of Financial Advisers / Financial
Services Council Leadership Forum (1 May 2012)
More....
Review of compensation arrangements for consumers of
financial services - Consultation Paper
As part of the Future of Financial Advice (FoFA) reforms announced
on 26 April 2010, the Government commissioned Richard St. John to
undertake a review to consider the need for, and costs and benefits
of a statutory compensation scheme. Mr St. John draws attention to
a number of issues on which comment is invited (raised at the end
of Chapters 2 to 5)
More...
Copy of Consultation Paper
The consultation paper provides information, frames issues and
raises questions on the need for, and costs and benefits of, a
statutory compensation scheme for clients who suffer damage or
incur loss as a result of misconduct by persons with whom they have
dealt in the financial services sector. Consultation Paper
(consolidated)
More...
APRA releases proposed MySuper authorisation
requirements
Accompanying the discussion paper is a draft authorisation
application form together with instructions, as well as draft
Prudential Standard SPS 410 MySuper Transition (SPS 410)
which sets out requirements for trustees moving member balances
into a MySuper product. The authorisation process for RSE licensees
wishing to offer MySuper products will commence from 1 January
2013. The consultation package can be found on the APRA
website.
Privacy laws set to reform
Australia's privacy laws will be reformed to better
protect people's personal information, simplify credit
reporting arrangements and give new enforcement powers to the
Privacy Commissioner. The Government will also modernise credit
reporting arrangements. The changes will be achieved through
amendments to the Privacy Act 1988. Further information is
available from
www.ag.gov.au/Privacy/Pages/Privacy-Reforms.aspx (02 May 2012)
More...
Legislation
Commonwealth
Corporations Amendment (Phoenixing and Other Measures)
Bill 2012
Passed by both Houses of Parliament and is awaiting Royal Assent.
The principal object is to amend the Corporations Act 2001 to give
ASIC the power to place a company into liquidation in order to
remove current impediments to workers accessing their entitlements
under the General Employee Entitlements and Redundancy Scheme
(GEERS). Before making a winding up order, ASIC must give notice of
its intention to make the order on the ASIC database, and publish
notice of its intention, in the manner prescribed (09 May 2012)
More...
ASIC Class Order [CO 12/416]
This class order provides flexibility in how in-use notice
information is provided to ASIC for employer-sponsored
superannuation products in light of the unique nature of those
products. Administered by: Treasury (03 May 2012) More...
ASIC Class Order [CO 12/415]
This class order provides flexibility in how in-use notice
information is provided to ASIC for employer-sponsored
superannuation products in light of the unique nature of those
products. Administered by: Treasury (02 May 2012) More...
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.