Holding Redlich © 2022
10 May 2022
#Superannuation, Funds Management & Financial Services
Published by:
Michael O’Connor
The ATO is developing advice and guidance on the following superannuation issues:
ASIC released a statement following its recent surveillance of 23 trustees which found significant deficiencies in trustees’ conflict management arrangements relating to investment switching. ASIC stated it had expected robust systems to prevent directors and senior executives from potentially misusing price sensitive information for personal gain but, instead, found significant deficiencies in trustees’ conflict management arrangements relating to investment switching.
ASIC also outlined steps trustees had taken, following the surveillance, to improve their conflict management, including:
ASIC confirmed that it will not extend ASIC Corporations (COVID-19—Advice-related Relief) Instrument 2021/268, which provided relief to financial advisors to provide statements of advice during the COVID-19 pandemic. ASIC believes the Instrument’s repeal is appropriate considering the current status of COVID-19.
The following key superannuation rates and thresholds will apply at the start of the 2022 financial year:
The ATO has reminded employers that, from 1 July 2022, they must make superannuation guarantee contributions for employees under 18 years old if they work more than 30 hours a week. The ATO is reminding employers of this upcoming requirement in light of the recent repeal of the legislated minimum monthly salary threshold that applies to superannuation guarantee contributions.
APRA registered Banking, Insurance, Life Insurance and Superannuation (prudential standard) determination No. 1 of 2022 (Cth) (CPS 226), which sets out the non-centrally cleared derivatives margining requirements for trustees.
Under Attachment D of CPS 226, new foreign body margin requirements have been inserted predominantly due to the impact of Brexit. These changes respond to new regulatory jurisdictions resulting from the United Kingdom’s withdrawal from the European Union.
The ATO released a statement on the importance of prompt account balance reporting following a successor fund transfer (SFT). The ATO advised that:
AUSTRAC released two financial crime guides on preventing ransomware attacks and criminal abuse relating to digital currencies.
The guides contain practical information and indicators to help trustees identify and report if a payment could be related to ransomware attacks or if someone could be using digital currencies to commit money laundering, scams, or terrorism financing.
APRA outlined its policy roadmap and initial risk management expectations in respect of trustees engaging in activities associated with crypto-assets. In particular, APRA expects trustees will:
APRA also expects trustees to consult with it and ASIC when trustees are unclear on prudential, disclosure or conduct requirements and expectations when undertaking activities associated with crypto-assets.
This Regulation amends the SIS Regulations to extend the temporary 50% reduction in minimum payment amounts for account-based pensions, allocated pensions and market-linked pensions for the 2022 financial year.
The Regulations make minor and technical amendments to the SIS Regulations and Income Tax Assessment (1997 Act) Regulations 2021 to ensure commutations of certain products, as specified in subsection 294-10(1) of the Income Tax Assessment Act 1997 (Cth), that result in amounts being paid in excess of the transfer balance cap, can be completed. Previously, the SIS Regulations did not permit such commutations to occur.
ASIC released a statement on its suspension of Dixon Advisory’s AFSL following Dixon Advisory moving into voluntary administration on 19 January 2022. The terms of the suspension:
The suspension and former voluntary administration arose after ASIC commenced civil penalty proceedings (which have now been stayed) against alleged conflicts, best interest failures, and inappropriate advice to retail clients.
ASIC released a statement in relation to the recent Federal Court proceedings ordering Westpac to pay penalties of $113 million in respect of widespread compliance failures across multiple businesses, including Westpac’s banking, superannuation, wealth management and insurance brands.
The penalties that related to superannuation included:
Authors: Luke Hooper & Michael O’Connor
Disclaimer
The information in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, we do not guarantee that the information in this article is accurate at the date it is received or that it will continue to be accurate in the future.
Published by:
Michael O’Connor
18 September 2022 – Knowledge
#Private Client Practice, #Superannuation, Funds Management & Financial Services
The Court has removed a trustee from a family discretionary trust after finding they failed to give ‘real and genuine’ considerations to two beneficiaries when distributing income.
14 September 2022 – Knowledge
#Dispute Resolution & Litigation, #Superannuation, Funds Management & Financial Services
For the third time, the Australian Securities and Investments Commission has brought criminal proceedings against an accounting firm and its auditors for failing to comply with audit standards.
24 August 2022 – Knowledge
#Superannuation, Funds Management & Financial Services, #Dispute Resolution & Litigation, #Regulatory
The Australian Securities and Investments Commission (ASIC) has released its latest Corporate Plan, outlining its strategic priorities for the next four years. The Corporate Plan provides transparency on the regulator’s approach to new trends and initiatives in the financial market, and insights into how the regulator will effectively tackle product design and distribution, sustainable finance, retirement decision-making and technology risks over the coming years.
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