In the media
ASIC cancels AFS licence of Global Merces Funds
Management Limited
ASIC has cancelled the Australian financial services
(AFS) licence of Global Merces Funds Management
Limited (Global Merces) effective 20 July 2020 (07 August 2020).
More...
Superannuation trustees compensate members wrongly
classified as 'smokers'
Superannuation trustees that were classifying new members
as 'smokers' by default and charging them higher life
insurance premiums have ceased this his practice, and some trustees
have remediated members for the extra premiums paid (07 August
2020).
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APRA indeterminant on who pays for early release
fraud
Overall investor experience with objective-based funds to
date have been worse than reported total returns, according to
Morningstar. The APRA has refused to confirm that superannuation
funds will end up paying the cost of any fraud committed as a
result of the Government's hardship early release
superannuation scheme (6 August 2020).
More...
Super guarantee amnesty deadline approaches
The ATO will begin sending notices to Australian employers
reminding them of the upcoming deadline for the super guarantee
amnesty. The amnesty expires on 7 September 2020 (05 August 2020).
More...
AFCA makes submission to ASIC's product intervention
powers consultation
The Australian Financial Complaints Authority
(AFCA) has published its response to ASIC's
consultation on the proposed use of its product intervention powers
to address significant consumer detriment arising from continuing
credit contracts being provided to retail clients under a
'collateral services' model (05 August 2020).
More...
Former financial adviser sentenced to six years'
imprisonment for dishonest conduct
Graeme Walter Miller, a former financial adviser and
director of Australian financial services licensee CFS Private
Wealth Pty Ltd, pleaded guilty to six counts of engaging in
dishonest conduct in the course of carrying on a financial services
business, contrary to section 1041G of the Corporations Act 2001
(04 August 2020).
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AFCA appoints Head of Membership Services
The Australian Financial Complaints Authority
(AFCA) is pleased to announce the appointment of
Mr. Campbell Daff to the newly created position of Head of
Membership Services (03 August 2020).
More...
Insurance Council and AFCA agree to launch business
interruption test case
The Insurance Council of Australia (ICA)
and the Australian Financial Complaints Authority
(AFCA) have agreed to file a test case considering
the application of infectious diseases cover in business
interruption policies (30 July 2020).
More...
Your move for recovery, super trustees tell
government
funds are ready to back the energy transition,
infrastructure and affordable housing to power an economic recovery
from the COVID crisis, the AIST has told the government, but policy
has limited large-scale investments (30 July 2020).
More...
In practice and courts
ASIC reports and class orders updated
30 July 2020
RG 271 Internal dispute resolution (new). The standards and
requirements highlighted in this guide are enforceable. It explains
what these financial firms must do to have an internal dispute
resolution (IDR) system in place that meets ASIC's standards
and requirements.
REP 665 Response to submissions on CP 311 Internal dispute
resolution: Update to RG 165 - Updated requirements for how
financial firms deal with consumer and small business complaints
under their internal dispute resolution (IDR) procedures: see
20-171MR
ASIC Corporations, Credit and Superannuation (Internal Dispute
Resolution) Instrument
2020/98. See also:
RG 165 (updated) and
RG 267 (new cover note added).
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 weekly data on the superannuation early release
scheme
The Early Release Initiative statistics for applications
received between 20 April - 26 July 2020 are available on the APRA
website here (updated 03 August 2020).
ATO: Proposed Superannuation Guarantee amnesty
The proposed Superannuation Guarantee (SG) Amnesty (the
proposed amnesty) and re-introduced the associated legislation into
Parliament. Until the proposed amnesty law is enacted by
Parliament, ATO will continue to apply the existing law to the
SGC statements you lodge. For more information see the:
Treasury Laws Amendment (Recovering Unpaid Superannuation) Bill
2019 and Explanatory memorandum.
APRA reminder: superannuation licensees on upcoming
legislative obligations
The APRA has written to registrable superannuation entity
(RSE) licensees reaffirming its expectations
regarding 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.
AFCA Current Matters
AFCA has paused processing complaints against insolvent
firms. Read
AFCA's statement on the investigation of complaints about
insolvent firms.
Union Standard International Group Pty Ltd (Updated August
2020).
Cases
Kander and Commissioner of Taxation
(Taxation) [2020] AATA
2635
TAXATION – INCOME TAX - where applicant intended to
enter into salary sacrifice arrangement – where applicant
mistakenly directed employer to make after-tax superannuation
contributions – whether ordinary income – decision
affirmed
Legislation
Commonwealth
Regulations
ASIC
Corporations, Credit and Superannuation (Internal Dispute
Resolution) Instrument 2020/98
30/07/2020 - This instrument sets out new standards and
requirements that the Australian Securities and Investments
Commission has made and approved for the internal dispute
resolution procedures (IDR procedures) of financial firms,
specifies requirements for written reasons for decisions about
complaints in relation to regulated superannuation funds, approved
deposit funds and retirement savings accounts, clarifies that
financial firms must comply with their IDR procedures, and modifies
the definition of "small business" in relation to IDR in
Chapter 7 of the Corporations Act 2001 so it aligns with the
definition of "small business" in the Rules of the
Australian Financial Complaints Authority in relation to external
dispute resolution.
Electronic
Transactions Regulations 2020
29/07/2020 -For legislation administered by the Australian
Prudential Regulation Authority (APRA) only specified information
gathering provisions are now exempt from the Act. This will enable
technology neutral communication between APRA and businesses and
individuals that have dealings with APRA.
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.
