In the media
Shameful ASIC fee increase warrants immediate
review
Five of Australia's largest financial advice industry
associations have condemned an increase in financial adviser
licence fees as "shameful" and called for an immediate
review of the ASIC industry funding model (05 March 2021).
More...
Dover Financial Advisers to pay $1.2 million penalty and
its sole director to pay $240,000 penalty for false or misleading
conduct
The Federal Court has ordered that Dover Financial
Advisers Pty Ltd (Dover) pay a $1.2 million penalty for engaging in
false or misleading conduct, and that Terrence (Terry) McMaster,
Dover's sole director, pay a $240,000 penalty for being
knowingly concerned in Dover's conduct (05 March 2021).
More...
Increasing SG would stem growing inequality
The Government's proposal to reduce the penalty for
late SG payments has been welcomed by accountants who say will help
small businesses. Going through with the legislated superannuation
guarantee (SG) increase over the next five financial years is a
good step in stemming the growing inequality in the country,
according to Rice Warner (04 March 2021)..
More...
Superannuation assets reach all time high in 2020
The Morrison Government welcomes the release of December
quarter 2020 superannuation data by the APRA. The data shows our
robust superannuation system reached an all-time high in 2020
despite financial volatility caused by COVID-19 (2 March 2021).
More...
ASFA welcomes super reforms
The Association of Superannuation Funds of Australia
(ASFA) has welcomed the Reuniting More Superannuation Bill as it
improves efficiency and more super being reunited with members (2
March 2021).
More...
ASIC commences civil penalty proceedings against REST
for misleading and deceptive representations to members
ASIC has commenced civil penalty proceedings in the
Federal Court against Retail Employees Superannuation Pty Ltd
(REST)(02 March 2021).
More...
ASIC commences civil penalty proceedings against CommSec
and AUSIEX for systemic compliance failures
ASIC has commenced civil penalty proceedings in the
Federal Court against Commonwealth Securities Limited (CommSec) and
Australian Investment Exchange Limited (AUSIEX) for alleged
breaches of the Market Integrity Rules, Corporations Act and ASIC
Act (CommSec only) relating to systemic compliance failures in the
delivery of financial services (01 March 2021).
More...
Don't blame and name us for others' actions say
super funds
Complaints lodged because of financial advice or insurance
provided by superannuation funds should not necessarily be regarded
as the responsibility of the superannuation funds themselves,
according to a submission lodged with the ASIC (26 February 2021).
More...
Industry, consumer body back new super laws
A superannuation industry body and a consumer advocate
have shown support for the passage of two bills related to
superannuation. Under the legislation, advisers will need to obtain
written consent prior to deducting fees, and other
legislation will facilitate the exit of all ERFs
from the market by early 2022, by removing the large numbers of
duplicate super accounts from the system (26 February 2021).
More...
Reuniting Australians with more lost
superannuation
The Treasury Laws Amendment (Reuniting More
Superannuation) Act 2021 requires that accounts transferred from
Eligible Rollover Funds to the ATO will, where possible, be
proactively reunited with a member's superannuation account, or
directly with the individual where eligible, within 28 days. This
will remove large numbers of duplicate superannuation accounts from
the system (25 February 2021).
More...
Financial sector cannot ignore modern slavery:
KPMG
As the reporting deadline for the Modern Slavery Act
creeps closer, KPMG and the Australian Human Rights Commission have
warned that after the royal commission, banks and super funds
cannot afford to risk public trust (24 February 2021).
More...
ASIC will offer immunity to financial criminals
ASIC will now consider extending immunity to serious
financial criminals if they assist it in its investigations and
enforcement actions. The immunity policy enhances ASIC's
ability to identify and take enforcement action against complex
markets and financial services contraventions," according to
ASIC (24 February 2021).
More...
Commissioner appointed to ALRC Financial Services
Legislation Inquiry
The Australian Law Reform Commission (ALRC) has welcomed
the appointment by the Commonwealth Attorney-General, the Hon
Christian Porter MP, and Hon Justice Craig Colvin as a part-time
Commissioner for the review of the legislative framework for
corporations and financial services regulation (22 February 2021).
More...
In practice and courts
Review of the Australian financial complaints
authority
The Morrison Government has released a terms of reference
for the review of the Australian Financial Complaints Authority
(AFCA), and is seeking stakeholder feedback on its functions and
performance. All interested parties are invited to lodge
submissions through the Treasury website before consultation closes
on 26 March 2021. Further information is available
here.
Combatting modern slavery in the financial services
industry
The Australian Human Rights Commission and KPMG Australia
have launched a new, practical guide to support the financial
services sector to respond effectively to these risks, using a
human rights-based approach.
Financial Services and
Modern Slavery: Practical responses to managing risks to people
is a guide to help the sector respond effectively to the
Modern Slavery Act 2018 (Cth) and other global human
rights reporting obligations (24 February 2021).
APRA reminder: superannuation licensees on upcoming
legislative obligations
Registrable superannuation entity (RSE)
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.
ATO alerts
04/03/2021 SuperStream
Rollover v3
Supporting documentation to assist DSPs and APRA funds in
implementing SuperStream Rollover v3
26/02/2021
Self-managed super funds: A statistical overview 2018-19
The self-managed super fund (SMSF) analysis and statistics annual
overview 2018–19 includes key data on the Australian SMSF
sector.
25/02/2021
Avoid Family Trust Distribution Tax by reviewing your
elections
Regularly review family trust and interposed entity elections to
avoid paying family trust distribution tax
25/02/2021
How we deal with non-compliance
Our main focus is encouraging SMSF trustees to comply with the
super laws, but there are occasions when stronger responses are
warranted
25/01/2021
Missed, underpaid or late super payments
If you missed the 28 January super guarantee due date, you need to
lodge a superannuation guarantee charge statement by 1 March to
avoid penalties
ASIC Papers open for public comment
Industry funding: 2019-20 Cost Recovery Implementation
Statement
ASIC published the final
2019-20 Cost Recovery Implementation Statement (CRIS). The CRIS
provides regulated entities with details of ASIC's forecast
regulatory costs and activities by industry and subsector. The
final CRIS has been updated to include some of the feedback that
arose during consultation on the draft document published in June
2020. ASIC has also published a
summary of its actual regulatory costs and
actual levies. Levy invoices will be issued shortly (04 March
2021).
ASIC regulatory documents
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...
APRA superannuation statistics for December 2020
The Australian Prudential Regulation Authority (APRA) has
released its Quarterly Superannuation Performance publication and
the Quarterly MySuper Statistics report for the December 2020
quarter (2 March 2021).
More...
APRA consultation paper: Implementation of AASB 17 for
insurance capital and reporting
The APRA consultation to update the insurance capital and
reporting frameworks in recognition of the implementation of
Australian Accounting Standards Board 17 Insurance Contracts (AASB
17). The consultation will close on 31 March 2021. The discussion
paper is available on the APRA website
here. Information regarding the regulatory responsibilities and
approach of ASIC to AASB 17 implementation is available
here.
Legislation
Commonwealth
Act compilation
Superannuation
Industry (Supervision) Act 1993
02/03/2021 - Act No. 78 of 1993 as amended
Acts
Financial
Sector Reform (Hayne Royal Commission Response No. 2) Act
2021
05/03/2021 - Act No. 19 of 2021 as made
Bills
Treasury Laws Amendment (Reuniting More Superannuation)
Bill 2020
Senate Bill agreed to, subject to requests 25 Feb 2021;
House of Representatives Consideration of Senate message; House
made Senate requested amendments 25 Feb 2021
Amends the: Retirement Savings Accounts Act 1997, Superannuation
Industry (Supervision) Act 1993 and Superannuation (Unclaimed Money
and Lost Members) Act 1999 to: facilitate the closure of eligible
rollover funds by 30 June 2021; and enable the Commissioner of
Taxation to reunite amounts he or she receives from eligible
rollover funds with a member's active account; and Income Tax
Assessment Act 1997 and Taxation Administration Act 1953 to make
consequential amendments.
Financial Sector Reform (Hayne Royal Commission Response
No. 2) Bill 2020
Assent Act no: 19 Year: 2021 02 March 2021
Amends the: Corporations Act 2001 to: require financial services
providers that receive fees under an ongoing fee arrangement to:
provide clients with a document each year which outlines the fees
they will be charged and the services they will be entitled to in
the following 12 months and which seeks annual renewal for all
ongoing fee arrangements; and obtain written consent before fees
under an ongoing fee arrangement can be deducted from a
client's account; require a financial services licensee or
authorised representative to give a written disclosure of lack of
independence where they are authorised to provide personal advice
to a retail client; and make consequential amendments; and
Superannuation Industry (Supervision) Act 1993 to: provide that a
superannuation trustee can only charge advice fees to a member
where certain conditions are satisfied; and remove a superannuation
trustee's ability to charge fees under an ongoing fee
arrangement for financial product advice from MySuper products.
Regulations
ASIC
Supervisory Cost Recovery Levy Amendment (Claims Handling and
Settling Services Providers) Regulations
2021
22/02/2021 - These regulations amend the ASIC Supervisory
Cost Recovery Levy Regulations 2017 to allow the Australian
Securities and Investments Commission to recover costs from its
regulation of activities undertaken by people who handle insurance
claims. 72AA Claims handling and settling services providers
(a) leviable entity forms part of the claims handling and settling
services providers sub-sector in a financial year if: (a) the
entity holds, at any time in the financial year, an Australian
financial services licence; and (b) the licence authorises the
holder to provide claims handling and settling services.
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.
