The Lander & Rogers Superannuation Alert is a brief overview of new developments in the superannuation industry.
|Release of Draft indicative restructure of AML/CTF Rules compilation|| |
On 24 July 2017, AUSTRAC announced the release of a draft indicative restructure of the AML/CTF Rules compilation for public consultation. According to the Accompanying Explanatory Note, the release intends to implement the recommendations of the Report on the Statutory Review of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 and Associated Rules and Regulations. That report recommended that the AML/CTF Rules be simplified, rationalised and presented in a user-friendly format, to improve accessibility and understanding of the relevant obligations.
|ASIC||ASIC infringement notices for misleading marketing materials||ASIC|| |
On 25 July 2017, ASIC reported that an Australian financial services entity had paid two ASIC infringement notices totalling $21,600. The entity had made misleading representations in marketing emails sent to customers and on its website.
The first infringement notice related to emails sent to 215,000 consumers that falsely stated that the entity had been asked by the consumer's superannuation fund to conduct a survey about their superannuation.
The second infringement notice related to misleading representations on a website operated by the entity that would lead customers to believe that they needed to use the entity's services to find their lost superannuation for free; and maintain contact with their superannuation fund while overseas.
The ASIC media release states: "Consumers can be heavily influenced by promotional materials published by financial services providers. For this reason, ASIC will continue to take action where we believe those materials are misleading. Firms must ensure their marketing materials and promotionalstatements are based on fact".
|ASIC||Amendment of ASIC Instrument||ASIC Corporations Amendment Instrument 2017/684|| |
On 25 July 2017, ASIC registered ASIC Corporations (Amendment) Instrument 2017/684 (Instrument). The Instrument amends, among other things, ASIC Corporations (Concept Validation Licencing Exemption) Instrument 2016/1175 (Principal Instrument). According to the Explanatory Statement, the Principal Instrument allows eligible businesses to test certain financial products and services for 12 months without needing to obtain an AFS licence or credit licence, and provides that an eligible person does not have to hold an AFS licence to provide financial advice about a product or to deal in an eligible product.
The effect of this change is that new businesses may test certain financial services related to the provision of financial advice without a financial services licence for 12 months. However, if the financial services include personal advice, they will be subject to the Statement of Advice requirements to the same extent as a financial services licensee.
|APRA||APRA policy initiatives||APRA Insight Issue Two 2017|| |
APRA has released the second issue of its publication APRA Insight for 2017. APRA notes, among other things, that:
|APRA||APRA letter to RSE licensees regarding proposed amendments to APRA's prudential and reporting standards||APRA|| |
On 25 July 2017, APRA issued a letter to Registrable Superannuation Entity (RSE) licensees to advise that APRA will be considering changes to its prudential framework as a consequence of the amendments to the law which are proposed in the Treasury Legislation Amendment (Improving Accountability and Member Outcomes in Superannuation) Bill 2017 (Bill).
In the letter APRA states that it:
|Ministerial Announcement||Australian FinancialComplaints Authority "transition team" established||Minister for Revenue and Financial Services media release|| |
On 26 July 2017, Revenue and Financial Services Minister Kelly O'Dwyer announced that the Government has created a transition team to help establish the Australian Financial Complaints Authority (AFCA), a new "one-stop-shop" for all financial and superannuation disputes, which is to be operational by 1 July 2018.
According to the Minister's media release, "the transition team will advise the Government on AFCA’s terms of reference, governance and funding arrangements", and "will also make recommendations on the authorisation process for AFCA and the transitional arrangements required to appropriately settle the cases currently before the three existing schemes".
Once Parliament has passed legislation establishing AFCA, the focus of the transition team will be to oversee the practical transition from the existing schemes (the Financial Ombudsman Service, Credit and Investments Ombudsman and Superannuation Complaints Tribunal) to AFCA.
All information on this site is of a general nature only and is not intended to be relied upon as, nor to be a substitute for, specific legal professional advice. No responsibility for the loss occasioned to any person acting on or refraining from action as a result of any material published can be accepted.