The Lander & Rogers Superannuation Alert is a brief overview of new developments in the superannuation industry.
- On 8 May 2015, ASIC announced that it made submissions to the Federal Court in relation orders proposed to be made against a financial services business and related individuals. ASIC is seeking a declaration of contravention and banning orders regarding the misuse of $4 million raised from SMSF investors. The Court has reserved its decision regarding disqualification and banning orders. A judgment set down by the Federal Court in April confirmed that those who promote and make recommendations to investors regarding establishment or use of an SMSF are carrying on a financial services business and therefore require an AFS Licence.
- On 13 May 2015, the Superannuation Complaints Tribunal announced the appointment of Ms Ragini Rajadurai to the Tribunal. Ms Rajadurai will hold the position of deputy chair for a period of 5 years, commencing 1 June 2015. Ms Rajadurai has more than 25 years of experience in law, insurance and alternative dispute resolution. She was previously a part-time member of the Tribunal.
- On 13 May 2015, the High Court of Australia handed down judgment in the case Selig & Anor v Wealthsure Pty Ltd & Ors HCA 18. The Court unanimously held that the proportionate liability regime in Division 2A of Part 7.10 of theCorporations Act 2001 only applies to claims of misleading and deceptive conduct where they are based on contraventions of section 1041H of the Act and not to other statutory or common law based claims.
- On 15 May 2015, the ATO issued ATO ID 2015/11 dealing with the meaning of 'legally qualified medical practitioner' within the definition of 'disability superannuation benefit' in section 995-1(1) of the Income Tax Assessment Act 1997. The decision arose out of a fund member's application for a disability superannuation benefit which requires the certification of 2 legally qualified medical practitioners. The member had certification from two health practitioners who were not medical doctors. The Commissioner decided to rely on the ordinary meaning of the words which necessitated the practitioners to be qualified under the relevant legislation to practise medicine in Australia by having a general or specialist registration with the Medical Board of Australia.