Holding Redlich © 2022
05 April 2022
#Superannuation, Funds Management & Financial Services
Published by:
Michael O’Connor
In light of the Ukraine conflict, ASIC advised trustees to follow the Australian Cyber Security Centre’s warning to adopt an enhanced cyber security posture, including:
APRA released its ‘Quarterly Superannuation Performance Report’ (Performance Report) and ‘Quarterly MySuper Statistics Report’ (MySuper Report) for the December 2021 quarter.
The MySuper Report provides data relating to superannuation products’ profiles, asset allocation targets, investment performance, and fees.
The Performance Report contains sector performance statistics, including the growth in funds under management, as follows:
APRA confirmed that it will shortly commence a voluntary survey of trustees focusing on their approaches to considering the financial risks of climate change and the expectations set out in APRA’s Prudential Practice Guide CPG 229 Climate Change Financial Risks.
The survey is yet to be released.
Treasury confirmed its strong expectations that trustees will take steps to divest any holdings in Russian assets. In support, APRA has stated it will not be taking any action against trustees who seek to divest Russian assets but provided that trustees have considered such divestments in accordance with their duties.
Our comment
The Federal Government’s statement is interesting – it echoes one of the initially intended provisions of the Your Future, Your Super Bill that would have enabled a Federal Government to veto super fund investments. Problematic, also, is whether divesting (or how it is undertaken) is in the best financial interests of members. This will clearly be an issue for those seeking to sell off assets to a market that may be flush with other sellers.
APRA and ASIC released a joint statement outlining expectations for trustees regarding the retirement income covenant (RIC), which takes effect from 1 July 2022. The joint statement provides the following implementation pathway that trustees should consider when meeting the RIC:
ASIC and APRA also outline the following key considerations when executing the implementation strategy:
Treasury released the terms of reference for its quality of advice review, which include examining:
When examining the above, regard should be given to:
The report will be provided to the Federal Government by 16 December 2022.
The Government has appointed Ms Fiona Crosbie to the Financial Regulator Assessment Authority (FRAA) for 21 March 2022 to 14 September 2026.
The FRAA is an independent statutory body tasked with assessing and reporting on the effectiveness and capabilities of ASIC and APRA.
APRA has updated one FAQ and published two additional FAQs as follows:
In a speech to the Investment Magazine Chair Forum, APRA Member, Margret Cole, discussed sustainability challenges for the superannuation sector, including:
The Treasurer announced the following proposed changes that impact superannuation:
The Regulations amend the Income Tax Assessment (1997 Act) Regulations 2021 (Cth) to
support the reduced eligibility age for downsizer contributions into superannuation from 65 to 60 years, and to repeal the work test for non-concessional and salary sacrificed contributions for individuals aged 67 to 74 (inclusive).
This Instrument defers the due date for providing the ATO Commissioner with copies of payment summaries regarding employment termination payments and Departing Australia superannuation payments to 14 August after the end of the relevant financial year.
The Instrument repeals ASIC Class Order [CO 11/1227] Relief for providers of retirement estimates (Class Order) while providing transitional relief to extend the Class Order’s effect until 31 December 2022.
The Class Order provides trustees conditional relief from various AFSL requirements in the Corporations Act when preparing retirement estimates for fund members.
The Instrument gives effect to the internal dispute resolution data reporting framework established by the Treasury Laws Amendment (Putting Consumers First—Establishment of the Australian Financial Complaints Authority) Act 2018 (Cth). The Instrument specifies the information that financial services licensees must give ASIC, which is outlined in the ‘IDR reporting Handbook’, relating to their internal dispute resolution procedures and the operation of those procedures.
For the first reporting period, the trustees of the following funds will be required to submit the relevant information to ASIC:
ASIC alleges a financial services company made unsolicited calls to 11 consumers, encouraging them to roll over their superannuation into different superannuation products, between August 2019 and June 2020.
The charges are brought under the pre-October 2021 anti-hawking provisions.
The hearing is listed for 16 May 2022.
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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