In the media
ASIC reviews the first round of super fund annual
members' meetings
ASIC - 06 August 2021 - ASIC has released findings about
superannuation funds' annual members' meetings. The
findings are based on a surveillance of the inaugural meetings.
More...
Super receives over 5,000 complaints in the last
year
MEDIA - 03 August 2021 - the Australian Financial
Complaints Authority has reminded members it is unable to deal with
complaints about high superannuation fees but claim handling delays
have been the public's biggest concern. More...
Millennium 3 ARs banned after charging
fees-for-no-service
ASIC - 03 August 2021 - North Coast Financial
Services' director Timothy Parry and officer Damian Price have
been banned by the corporate watchdog after they were found to have
breached their duties. More...
AFCA outlines latest efficiency measures
AFCA - 02 August 2021 - a pilot project aimed at
identifying complaints without merit earlier in its process is
among the initiatives the Australian Financial Complaints Authority
(AFCA) has under way to support efficient and
timely handling of the 70,000 complaints it receives annually.
More...
ASIC bans two advisers for five years
ASIC - 02 August 2021 - the two advisers used a website to
attract clients to help them find lost super, but are not
adequately trained or competent to provide financial
services. More...
Super funds to be probed on ASX ownership
Media - 02 August 2021 - a parliamentary inquiry will be
looking into the implications of capital concentration and common
ownership from banks, superannuation funds, investments funds, and
hedge funds. More...
Chasing at Windmills: Latest inquiry distracts funds
from delivering in best financial interests of members
ASFA - 02 August 2021 - despite the paint not being dry on
the "Your Future, Your Super" reforms (which commenced on
1 July) and the accompanying regulations now significantly overdue,
the HOR Standing Committee is going to cast a critical eye on
capital concentration - the very outcome the policies have sought
to drive. More...
AFCA praises advisers for compliance
As industry organisations face Parliament to argue against
rising regulatory levies, the Australian Financial Complaints
Authority has praised financial advisers for receiving only a slim
number of complaints (30 July 2021). More...
Joint bodies call for NALI ruling to be narrowed
MEDIA - 29 July 2021 - the Institute of Public
Accountants, The Tax Institute and Chartered Accountants Australia
and New Zealand have cautioned the ruling will have far-reaching
consequences for the super sector and say it should be narrowed to
the law's original intent. More...
BT, Asgard cop fee-for-no-service fines
MEDIA - 27 July 2021 - the Federal Court has handed down
$3 million in fines to the two Westpac-owned wealth management
brands in a case that hinged on their inappropriate deduction of
advice fees from customer accounts. Justice Wheelahan said in his
decision: "Financial services providers in the position of the
defendants should not be able to take the benefits which arise from
automated and offshore processes and systems. More...
In practice and courts
Treasury Consultation: Retirement Income Covenant
position paper
The covenant will codify the requirements and obligations
for superannuation trustees to improve retirement outcomes for
individuals, while enabling choice and competition in the
retirement phase. The Government will consult further on exposure
draft legislation later this year. Subject to the passage of
legislation, this covenant will commence from 1 July 2022. The
paper is available on the Treasury website, with consultation closing 6
August 2021.
Treasury Consultations
Exposure draft legislation to implement a further seven
recommendations of the Banking, Superannuation and Financial
Services Royal Commission. The legislation will establish the
Compensation Scheme of Last Resort (recommendation 7.1) and the
Financial Accountability Regime (recommendations 3.9, 4.12, 6.6,
6.7 and 6.8).
Financial Accountability Regime - July
2021
16 July 2021 - 13 August 2021
Financial Services Royal Commission -
Compensation Scheme of Last Resort
16 July 2021 - 13 August 2021
ASIC INFO
90 Notifying members about superannuation
transfers without consent
(updated: Issue date unchanged)
Minor technical updates to account for the Treasury Laws Amendment (Reuniting More
Superannuation) Act 2021 by removing out-dated references
and updating content for existing requirements (29 July 2021).
ASIC RG
221 Facilitating digital financial
services disclosures
(updated: Issue date unchanged)
Minor updates at RG 221.12 and Table 3 to include written consent
to fees under fee arrangements (28 July 2021).
ASIC CP 344 Remaking
ASIC class order on when debentures can be called secured notes:
[CO 12/1482]
Sets out ASIC's proposals to remake Class Order [CO 12/1482] When debentures can be called
secured notes, which is due to expire ('sunset') on 1 April
2022: See 21-156MR.
ASIC Corporations (Amendment) Instrument
2021/381
Amends the ASIC Corporations (Auditor Independence)
Instrument 2021/75 and ASIC Corporations (Parent
Entity Financial Statements) Instrument 2021/195 to change the repeal dates from
April 2026 to April 2024.
ASIC Corporations (COVID-19-Advice-related Relief)
Instrument 2021/268
Extends until 15 October 2021 the relief measure that allows
financial advisers to provide a record of advice rather than a
statement of advice to existing clients requiring financial advice
due to the impact of the COVID-19 pandemic: See 21-072MR and FAQs.
ASIC consultation: Draft guidance for the hawking
reforms
'ASIC's guidance gives additional clarity on how
the changes may affect commercial practices, systems and processes.
All interested stakeholders have until 17 August to provide
feedback on CP 346. ASIC will publish its final guidance in
September 2021, ahead of the revised hawking prohibition commencing
on 5 October 2021. More...
ASIC Consultations: CP 340 Breach reporting and
related obligations
This consultation paper set out our proposals for
providing guidance to Australian financial services licensees and
Australian credit licensees (credit licensees) on the breach
reporting obligation that applies from 1 October 2021. The
obligations require these licensees to notify, investigate and
remediate breaches of the law in certain circumstances. More...
ASIC Corporations, Superannuation and Credit (Amendment)
Instrument 2020/99
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.
APRA letter on implementation of Your Future, Your Super
reforms
The APRA has released a letter to all Registrable
Superannuation Entity licensees on the implementation of Your
Future, Your Super reforms, that came into effect on 1 July 2021.
The letter sets out APRA's expectations of RSE licensees in
light of the new legislative requirements. The letter to industry
is available on the APRA website at Implementation of Your Future, Your Super
reforms.
Cases
Australian Securities and Investments
Commission v RI Advice Group Pty Ltd (No
2) [2021] FCA 877
CORPORATIONS LAW - financial services and markets - best interests
obligations - responsibilities of holder of Australian financial
services licence - obligation of licensee to take reasonable steps
to ensure that its representatives comply with the best interests
obligations - obligation of licensee to do all things necessary to
ensure that the financial services covered by the licence are
provided efficiently, honestly and fairly - whether the first
defendant, a licensee, contravened these obligations.
Australian Securities and Investments
Commission v MobiSuper Pty Ltd [2021]
FCA 855
CORPORATIONS - application by Australian Securities and Investments
Commission (ASIC) for declaration of contravention
of s 912A of the Corporations Act 2001 (Cth) against third
defendant - provision of financial services by way of issue of
interests in superannuation fund - failure on part of
third defendant to do all things necessary to ensure that the
relevant financial services were provided efficiently, honestly and
fairly - declaration of contravention made
PRACTICE AND PROCEDURE - ASIC and third defendant jointly proposing
orders on the basis of agreed facts - general principles applicable
where parties to regulatory proceedings propose orders by consent -
no risk that orders sought would interfere with balance of
proceedings against other defendants - proposed orders made
substantially in terms sought
Superannuation Industry (Supervision) Act 1993 (Cth) ss 10, 29D,
29E, 34C
Superannuation (prudential standard) determination No. 3 of
2012, Prudential Standard SPS 231 Outsourcing.
Bonser v Commonwealth Superannuation
Corporation [2021] FCA
847
ADMINISTRATIVE LAW - application for judicial review of a decision
of the Commonwealth Superannuation Corporation (CSC) - invalidity
classification - where parties have jointly promoted that the Court
make a declaration that the decision of the CSC was invalid and of
no effect - where grant of relief requires the exercise of judicial
discretion - where evidence supports the joint submissions - orders
made in terms sought
DEFENCE AND WAR - militar superannuation and invalidity
benefits - Military Superannuation and Benefits Act 1991 (Cth)
- application for judicial review of a decision of the
Commonwealth Superannuation Corporation (CSC) - invalidity
classification - where parties have jointly promoted that the Court
make a declaration that the decision of the CSC was invalid and of
no effect - where grant of relief requires the exercise of judicial
discretion - where evidence supports the joint submissions - orders
made in terms sought
Military Superannuation and Benefits Act 1991 (Cth).
Asteron Life & Superannuation
Limited, in the Matter of Asteron Life & Superannuation Limited
(No 2) [2021] FCA 880
INSURANCE - application for transfer of life insurance business -
application for variation of dispensation orders due to COVID-19
restrictions.
Legislation
Commonwealth
Act Compilation
Superannuation Industry (Supervision) Act
1993
02/08/2021 - Act No. 78 of 1993 as amended
Regulations
Financial Sector Reform (Hayne Royal
Commission Response) (Hawking of Financial Products) Regulations
2021
06/08/2021 - this instrument amends the Corporations Regulations
2001 to partially implement recommendations 3.4 and 4.1 of the
Financial Services Royal Commission in relation to the hawking of
financial products.
Treasury Laws Amendment (Your Future, Your
Super-Addressing Underperformance in Superannuation) Regulations
2021
05/08/2021 - these regulations amend the Superannuation Industry
(Supervision) Regulations 1994 to support the implementation of an
annual superannuation performance test and comparison tool for
superannuation products.
Superannuation Industry (Supervision)
Amendment (Your Future, Your Super-Improving Accountability and
Member Outcomes) Regulations 2021
05/08/2021 - this instrument amends the Superannuation Industry
(Supervision) Regulations 1994 and supports amendments enacted by
the Treasury Laws Amendment (Improving Accountability and Member
Outcomes in Superannuation Measures No. 1) Act 2019.
Treasury Laws Amendment (Your Future, Your
Super-Single Default Account) Regulations 2021
05/08/2021 - this instrument amends the Superannuation Guarantee
(Administration) Regulations 2018 to support the single default
account reforms in Schedule 1 to the Treasury Laws Amendment (Your
Future, Your Super) Act 2021.
Financial Sector Reform (Hayne Royal
Commission Response-Breach Reporting and Remediation) Regulations
2021
05/08/2021 - this instrument amends four instruments to support the
breach reporting amendments in Schedule 11 to the Financial Sector
Reform (Hayne Royal Commission Response) Act 2020.
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.