In the media

Do industry funds now have an advice advantage? On the back of the Association of Financial Advisers’ (AFA’s) strong rebuttal of Industry Super Australia (ISA) calls for a rapid end to all grandfathered commissions, some advisers are warning that salaried industry fund advisers now have a significant advantage (03 May 2019). More...

APRA confirms super funds performance review Superannuation funds will be required to undertake an annual Business Performance Review under new guidelines issued by the APRA consistent with the recent passage of the Government’s Treasury Laws Amendment (Improving Accountability and Member Outcomes in Superannuation Measures No.1 Bill 2019)(03 May 2019). More...

More change ahead for superannuation governance The Australian Prudential Regulation Authority (APRA) has warned that, while the 2013 prudential framework has led to some improved practices across the superannuation industry, further enhancements are needed for it to remain fit for purpose (02 May 2019). More...

Announcing Kathy Bowlen as the new executive general manager - Communications and stakeholder relations The Australian Financial Complaints Authority is pleased to announce the appointment of Kathy Bowlen as the inaugural Executive General Manager – Communications and Stakeholder Relations (02 May 2019). More...

Backdown on banning conflicted financial advice will leave consumers exposed Thousands of consumers of financial products, including superannuation, will remain exposed to conflicted financial advice if proposed regulations on grandfathered conflicted remuneration get the green light, the Australian Institute of Superannuation Trustees has warned (01 May 2019). More...

Don’t incentivise planners via commission rebates says ISA The Productivity Commission sees insurance as a key issue impacting superannuation fund member returns and intends examining the value for money actually delivered. Government proposals to rebate grandfathered commissions to clients via product providers would represent a significant abrogation of one of the key recommendations of the Royal Commission, according to Industry Super Australia (ISA) ( 01 May 2019). More...

Sydney wealth manager cops licence suspension ASIC has suspended the Australian Financial Services licence of a financial advice dealer group for breaching its obligations and failing to obtain AFCA membership. According to the corporate regulator, AWSM had breached its financial reporting and audit obligations and the requirement to obtain membership of the Australian Financial Complaints Authority (AFCA) (29 April 2019). More...

ASIC bans two Sydney men from providing financial services for six years ASIC has banned Mr Jeffrey Worboys and Mr Matthew Barnett from providing financial services for six years following an ASIC investigation (29 April 2019). More...

AFA accuses Government of interfering in AFSL contracts The Federal Government has been accused of unilaterally seeking to alter the contract which exists between Australian Financial Services Licensees and the Australian Financial Complaints Authority (AFCA) by allowing the authority to deal with complaints dating back to 2008 (29 April 2019). More...

APRA issues IOOF super entities with ‘show cause’ notice The company said that the APRA-regulated subsidiaries had received a show cause notice from APRA which reflected the Independent Reviewer’s report and also indicated that the regulator had formed the preliminary view that the entities had breached their license conditions relating to the Office of the Superannuation Trustee (26 April 2019). More...

Are financial planners facing double jeopardy? The risk of double jeopardy for financial planners sits at the heart of the Financial Planning Association’s (FPA’s) concerns about the Australian Financial Complaints Authority (AFCA) dealing with complaints dating back as much as 10 years (24 April 2019). More...

ASIC bans Gold Coast financial adviser ASIC has banned Rodney Peters, of Queensland, from providing financial services for 6 years. The delegate determined that Mr Peters, in engaging in excess of 1,000 options trades on behalf of a number of clients between April 2015 and April 2016, had not complied with financial services law (23 April 2019). More...

FPA raises concerns about impact of AFCA legacy complaints rule changes on professional indemnity market The FPA has raised concerns about the Australian Financial Complaints Authority’s (AFCA) proposed legacy complaints rule changes and the potential impact they will have on the professional indemnity (PI) costs for financial planners (23 April 2019). More...

In practice and courts

AASB-AUASB climate-related risks disclosure update The AASB and AUASB have released the latest version of Climate-related and other emerging risks disclosures: assessing financial statement materiality using AASB/IASB Practice Statement 2. This research paper, originally published in December 2018, contains several updates and guides directors, preparers and auditors when preparing and auditing financial statements. Even though the guidance is not mandatory, it represents the IASB’s best practice interpretation of materiality (02 May 2019).

Super scandal: unpaid super guarantee in 2016-17 Industry Super Australia: 03 May 2019 This analysis of Australian Taxation Office (ATO) data on individuals has found the unpaid super crisis did not improve in 2016-17, with 2.85 million Australians being short-changed $5.94 billion in super entitlements. More...

APRA: Post-implementation review of APRA's superannuation prudential framework Information paper: Review of APRA's 2013 superannuation prudential framework was released on 30 April 2019. See the paper here

ACSI: Towards better corporate accountability This policy lists tangible proposals designed to strengthen corporate accountability. Improving corporate accountability will drive better outcomes for companies, investors and the Australian community more broadly (29 April 2019). More...

Australian Law Reform Commission (ALRC): Review into Australia’s corporate criminal responsibility regime Note: Scope of the reference -The reports which the ALRC should consider should include but not be limited to the: 2019 Final report of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry; and 2017 report of the ASIC Enforcement Review Taskforce. The ALRC should provide its report to the Attorney-General by 30 April 2020. More...

APRA consultation: The Financial Sector (Shareholdings) Rules 2019 (the Rules) In particular, APRA has proposed Rules setting out the matters that must be considered in determining if a person is “fit and proper” for the purposes of the FSSA. The consultation period on the proposed Rules has now commenced, with APRA accepting submissions until 27 May 2019. Copies of the draft Rules and explanatory material are available here

ASFA reminder: Recovering your unclaimed money From the 27th June 2019 applications for unclaimed monies under s254 of the Bankruptcy Act can be made directly to Australian Financial Security Authority (AFSA) replacing the current Court application process. An application form and further information about the new process will be published closer to the commencement date. More...

IFAC: Global consultation on quality management for firms and engagements now open The International Auditing and Assurance Standards Board (IAASB) seeks public comment by July 1, 2019 on three interrelated standards that address quality management. The proposals bring important changes to the way professional accountancy firms are expected to manage quality—for audits, reviews, and other assurance and related services engagements.

FPA submissions Ending Grandfathered Conflicted Remuneration for Financial Advisers - Treasury - 24 April 2019 AFCA Rules Change – Legacy complaints – AFCA - 23 April 2019

AFCA current matters Digital Rebl Pty Ltd and Media Rebl Pty Ltd Forex Capital Trading Pty Ltd AGM Markets Pty Ltd Berndale Capital Securities Pty Ltd Bestjet Travel Pty Ltd (Bestjet) Viewble Media and the Shoppers Network

AIST submissions AIST strongly believes that the public comparative reporting of complaint data is an important component of the financial services system. Accordingly, AIST has recommended that the public report contains additional data such as which sector generated complaints. AIST seeks a roundtable to discuss any draft of the public report including a suitable reporting model for extended services or groups. There should be a biennial review of the report. More...

Gazette - Superannuation Industry (Supervision) Act 1993

01 May 2019 Notice of Disqualification - Carolyn Leach; Gregory Leach; Paula Lancaster

23 April 2019 Notice of Disqualification - Ronelle Adamson; icholas Adamson

Cases

HILL and Tax Practitioners Board (Taxation) [2019] AATA 756POLICY AND PROCEDURE – stay application – tax agent registration cancellation – whether decision to cancel tax agent registration should be stayed – whether decision to prevent reapplying for tax agent registration for five years should be stayed – conduct of personal affairs – prospects of success – public interest – futility of stay – stay rejected - Administrative Appeals Tribunal Act 1975 (Cth) s 41 The Board’s 10 January 2019 decision (c) had been personally culpable (again in his role as a director and tax agent) in the non-remission of (and non payment relating to) superannuation guarantee charge payments and liabilities .

Legislation

Commonwealth

Act Compilation

Superannuation Industry (Supervision) Act 1993 24/04/2019 - Act No. 78 of 1993 as amended - This is a compilation of the Superannuation Industry (Supervision) Act 1993 that shows the text of the law as amended and in force on 6 April 2019.