In the media

ASIC succeeds in obtaining orders against Debt Wipeout
ASIC has obtained interim orders and injunctions from the Federal Court of Australia against Mr David Murphy, Mr Anastasios Mavroulis, Mrs Kewa Ruwhiu and Mr Mathew Ruwhiu (the defendants) and Debts Knockout Pty Ltd (Debts Knockout) in relation to unlicensed financial services (15 October 2020).  More...

ASIC suspends the AFS licence of Ballast Financial Management Pty Ltd
ASIC has suspended the Australian financial services (AFS) licence of Perth-based financial advice provider Ballast Financial Management Pty Ltd  Ballast ceased carrying on a financial services business when it was unable to obtain professional indemnity insurance to comply with its obligation to have adequate compensation arrangements (14 October 2020). More...

Super boards need to lift governance
APRA deputy chair, Helen Rowell, said boards needed to lift their governance practices and “break the nexus with the past where needed”.  While this was not reflective of the industry at large, Rowell said the challenges were not unique to only smaller funds or underperformers (13 October 2020). More...

APRA flags Budget-driven changes to heatmaps
The  APRA has signalled possible changes to its superannuation heatmaps regime to reflect the Government's Budget changes to superannuation fund performance (13 October 2020).  More...

Australian funds last on disclosure: Morningstar
Australia has the world's worst practice in portfolio holdings disclosure, according to Morningstar, with an analyst calling the lack of transparency an “indictment” of the local investment industry (09 October 2020).  More...

No third tranche of early release
There will not be a third tranche of the early release of superannuation scheme, the Assistant Minister for Superannuation, Financial Services and Financial Technology, Jane Hume has confirmed (8 October 2020). More...

Super performance test for consumers
The superannuation performance test will allow consumers to compare “apples with apples” and will not necessarily  take into account the benchmark funds had set for themselves, according to Assistant Minister for Superannuation, Financial Services (08 October 2020).   More...

Sort out super performance before stapling says AIST
Australia's financial services regulators need to deal with superannuation fund underperformance before members find themselves stapled to particular funds, according to industry funds body, the Australian Institute of Superannuation Trustees (AIST)(08 October 2020).  More...

Members ‘unlikely' to remain in poorly-performing super funds: Grattan
While there is a possible danger of members remaining in poorly-performing super funds, this is the better option than them accumulating multiple accounts and paying multiple fees (08 October 2020). More...

Superannuation funds to face competitive test
MEDIA – 08 October 2020 - Superannuation funds will have to pass an objective performance test to be able to take on new members under new Superannuation funds to face competitive test (08 October 2020).   More...

APRA begins roll-out of new Supervision Risk and Intensity Model
The Australian Prudential Regulation Authority (APRA) has announced that it is commencing the roll-out of a new model for assessing the risks faced by banks, insurers and superannuation licensees. APRA will use the SRI Model to assess the systemic significance of APRA-regulated entities, and the level of risk each entity faces (06 October 2020).  More...

Significant superannuation changes lack detail
The ASFA said the measures announced in the 2020 Federal Budget represent a significant change to the architecture of Australia's superannuation system. ASFA supports measures to lift standards for MySuper in order to improve retirement outcomes for superannuants, and how these changes are made needs to be carefully considered (06 October 2020).  More...

In practice and courts

APRA letter to RSE licensees on controlling stake obligations and updated application kit
APRA advises licensees to review their current ownership structures in regard to the requirements that have been in place since July 2019. An updated application form and instruction guide to own or control an registrable superannuation entity (RSE) licensee is now available. The letter is available on the APRA website at: Know your obligations approval to own or control an RSE licensee. The application form and instruction guide is available on the APRA website at: Apply to own or control an RSE licensee. (15 October 2020)

APRA weekly data on the superannuation early release scheme
The APRA has published the latest industry-level and fund-level data on the temporary early release of superannuation scheme. The Early Release Initiative statistics for applications received between 20 April - 4 October 2020 are available on the APRA website here (12 October 2020).

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. 

AFCA Current Matters
Union Standard International Group Pty Ltd (Updated October 2020 )
Bendigo and Adelaide Bank Great Southern loans (Updated October 2020 )

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...

Austrac reminder:  Rule extended to support COVID-19 early release of superannuation initiative
AUSTRAC has extended the Rule for streamlined customer verification under the COVID-19 early release of superannuation initiative until 31 December 2020.  More...

Consultation: AFCA Rules changes ahead of Superannuation Complaints Tribunal ceasing operations
As part of transition arrangements in relation to the Superannuation Complaints Tribunal (SCT) ceasing operations after 31 December 2020, the Australian AFCA is seeking submissions on proposed changes to its Rules. Submissions have closed on 16 October 2020. The consultation paper, draft amendments to the Rules and draft amendments to the Operational Guidelines are available on the AFCA website here. 

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