In the media

Super fund offers made to employers as default fund allowed

MEDIA – 22 July 2021 – the prohibition of hawking superannuation funds only applies to offers made to retail clients, according to the corporate regulator. More...

Ian Silk calls Govt proxy proposal 'backwards' step MEDIA – 22 July 2021 – the proposal to require superannuation funds to be independent of proxy advisers would undermine the financial outcomes for super beneficiaries by rendering this system less effective. More...

ASIC bans Gold Coast adviser and cancels AFS licence of Trade Wind Financial Services ASIC – 21 July 2021 – ASIC has banned former financial adviser Adam John Bevan for five years from providing financial services, controlling a financial services business. More...

ASIC consults on draft guidance for the hawking reforms ASIC – 21 July 2021 – ASIC is consulting on proposed updates to its guidance on the prohibition on the hawking of financial products. More...

ASIC releases reference checking and information sharing protocol for financial advisers and mortgage brokers ASIC – 21 July 2021 – ASIC has made the ASIC reference checking and information sharing protocol (ASIC Protocol) that will give effect to the Financial Services Royal Commissions recommendations to improve reference checking in the financial advice and mortgage broking industries. The Act, and the ASIC Protocol, commence on 1 October 2021. More...

ASIC publishes Internal Dispute Resolution data dictionary and glossary ahead of pilot ASIC – 19 July 2021 – ASIC has released internal dispute resolution reporting documents, which will be tested in a pilot involving financial firms from across relevant industry subsectors in late 2021. More...

Release of the Retirement Income Covenant position paper TREASURY – 19 July 2021 – the Government has released a position paper on the retirement income covenant for public consultation. The introduction of the retirement income covenant is an important step in encouraging the further development of the retirement phase of superannuation. More...

Budgeting provider MyBudget applies for ASFL ASIC – 19 July 2021 – the application follows an investigation by the corporate regulator after concerns unlicensed financial services were being conducted during the COVID-19 pandemic when more consumers may face financial hardship. More...

Government releases new royal commission bills MEDIA – 16 July 2021 – Treasurer Josh Frydenberg said new legislation released by the government would implement a further seven recommendations of the royal commission, including the establishment of a compensation scheme of last resort. The laws would also address the establishment of the Financial Executive Accountability Regime, which extended the government’s existing BEAR framework to all APRA-related entities. Read the government statement here. More...

ASIC finalises investigation into AMP Financial Planning ‘fees for no service’ criminal conduct ASIC – 16 July 2021 – ASIC has finalised its investigation into the alleged fees-for-no-service conduct by AMP Financial Planning Pty Limited (AMP Financial Planning) arising from its Buyer of Last Resort Policy. More...

In practice and courts

Treasury consultation: Retirement Income Covenant position paper The covenant will codify the requirements and obligations for superannuation trustees to improve retirement outcomes for individuals, while enabling choice and competition in the retirement phase. The Government will consult further on exposure draft legislation later this year. Subject to the passage of legislation, this covenant will commence from 1 July 2022. The paper is available on theTreasury website, with consultation closing 6 August 2021.

Treasury consultations Exposure draft legislation to implement a further seven recommendations of the Banking, Superannuation and Financial Services Royal Commission. The legislation will establish the Compensation Scheme of Last Resort (recommendation 7.1) and the Financial Accountability Regime (recommendations 3.9, 4.12, 6.6, 6.7 and 6.8). Financial Accountability Regime – July 2021 16 July 2021 - 13 August 2021 Financial Services Royal Commission – Compensation Scheme of Last Resort 16 July 2021 - 13 August 2021

ASIC Corporations (Amendment) Instrument 2021/381 Amends the ASIC Corporations (Auditor Independence) Instrument 2021/75 and ASIC Corporations (Parent Entity Financial Statements) Instrument 2021/195 to change the repeal dates from April 2026 to April 2024.

ASIC consultation: Draft guidance for the hawking reforms 'ASIC’s guidance gives additional clarity on how the changes may affect commercial practices, systems and processes. All interested stakeholders have until 17 August to provide feedback on CP 346. ASIC will publish its final guidance in September 2021, ahead of the revised hawking prohibition commencing on 5 October 2021 (21 July 2021). More...

ASIC Consultations: CP 340 Breach reporting and related obligations This consultation paper set out our proposals for providing guidance to Australian financial services licensees and Australian credit licensees (credit licensees) on the breach reporting obligation that applies from 1 October 2021. The obligations require these licensees to notify, investigate and remediate breaches of the law in certain circumstances. More...

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 additional FAQs on the Superannuation Data Transformation Phase 1 reporting standards Included in the FAQs is a clarification on FAQ 1.09 for the historical reporting requirements to confirm that this applies to quarterly and annual reporting. APRA is releasing FAQs and worked examples to clarify reporting issues raised by RSE licensees. Please note that the APRA Connect test environment is available for familiarisation and to practice data preparation and submission. The FAQs are available on the APRA website at: Frequently Asked Questions – Superannuation Data Transformation (16 July 2021).

APRA consultation on guidance in support of prudential standard on remuneration The draft Prudential Practice Guide CPG 511 Remuneration sets out principles and examples of better practice to assist banks, insurers and superannuation licensees comply with prudential standard CPS 511 Remuneration, which will be finalised later this year. The closing date for submissions on the draft CPG 511 is 23 July 2021. Copies of the draft CPG 511 and a consultation letter at: Consultation on remuneration requirements for all APRA-regulated entities.

AFCA Current Matters Information for small businesses about the collapse of Digital Rebl Pty Ltd and Media Rebl Pty Ltd (Updated July 2021).

Legislation

Commonwealth

Acts Compilation

Superannuation Act 199012/07/2021 – Act No. 38 of 1990 as amended

Regulations

ASIC Corporations and Credit (Reference Checking and Information Sharing Protocol) Instrument 2021/42920/07/2021 – this instrument gives effect to the reference checking and information sharing protocol for the purposes of the Corporations Act 2001 and the National Consumer Credit Protection Act 2009.