Superannuation Alert - 12.02.14

Financial Services eBulletin - 12 February 2014

The Lander & Rogers Superannuation Alert is a brief overview of new developments in the superannuation industry.

  • On 30 January 2014, the Fair Work Commission issued Statement [2014] FWCFB 590 regarding its obligation to conduct a four yearly review of the default fund terms of modern awards. The Commission invited submissions on the following: "…the draft notices and draft forms, …the timetable for the making of an application to have a standard MySuper product included on the Default Superannuation List or an application to have an employer MySuper product included on the Schedule of Employer MySuper Products and subsequent written submissions, and …any other process issues regarding the making of the Default Superannuation List and the Schedule of Employer MySuper products."
    Submissions were due by 7 February 2014.
  • On 30 January 2014, the Anti-Money Laundering and Counter-Terrorism Financing Rules Amendment Instrument 2014 (No. 2) was registered on the Federal Register of Legislative Instruments. The instrument amends Chapter 21 (issuing or selling a security or derivative) of the Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 (No. 1) by inserting a new exemption from the obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) in relation to reporting entities issuing new interests in registered managed investment schemes in certain circumstances.
  • On 31 January 2014, ASIC released Report 383 ASIC enforcement outcomes: July to December 2013 which details enforcement outcomes achieved in that period. In a related media release, ASIC has indicated that:
    • its current areas of focus include: misleading advertising of products and services, market misconduct (including insider trading), and the responsibility of gatekeepers; and
    • its future areas of focus include: loan fraud, false accounting, advertising, and takeovers and shareholder disclosure
  • On 4 February 2014, AUSTRAC updated its frequently asked questions on reporting entities' obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) regarding enrolment and registration.
  • On 5 February 2014, APRA reissued the June 2013 Annual Superannuation Bulletin and the June 2012 Annual Superannuation Bulletin as a result of uncovering a compilation error in the June 2008 financial performance figures. The revision resulted in changes to various items in Table 7 concerning financial performance trends for June 2008.
  • In a 5 February 2014 letter to all RSE licensees, APRA announced that it is proposing to issue a Modification Declaration to permit certain self-insuring defined benefit funds (DB) to continue their self-insurance arrangements beyond the transition period ending on 1 July 2016. This will allow RSE licensees to accept a successor fund transfer of members of self-insuring DB funds, subject to a revision to the receiving RSE licensee's licence to permit self-insurance.
  • On 5 February 2014, the Parliamentary Library released a Chronology of major superannuation and retirement income changes in Australia, to provide a historical context with which to understand the evolution of superannuation and retirement policy in Australia. It focuses on key events including:
    • major milestones and changes relating to the Age Pension;
    • the development and implementation of mandatory and voluntary retirement income arrangements; and
    • the development of, and changes to, taxation arrangements applying to superannuation generally.
  • The ATO has published the webpage A new standard to streamline super: a positive change for employers to help employers understand and prepare for the introduction of the data and payment standard. From 1 July 2014, employers with 20 or more employees will be required to use the standard when making superannuation contributions. The webpage publication includes information on key dates, what will change, solutions available and what employers need to do to be ready on time.
  • The following Bills are proposed for introduction in Federal Parliament's 2014 Autumn Sittings:
    • Tax and Superannuation Laws Amendment (2014 Measures No 1) Bill 2014
      • provides the ATO with power to direct SMSF trustees to undertake education if they have contravened legislation;
      • imposes administrative penalties on SMSF trustees for contravention of superannuation legislation; and
      • directs SMSF trustees to rectify contraventions of the legislation.
    • Tax and Superannuation Laws Amendment (2014 Measures No 2) Bill 2014
      • restates and standardises the special conditions that apply to tax exempt entities;
      • clarifies the restrictions on GST refunds; and
      • transfers lost member accounts to the ATO (increasing the threshold).
    • Corporations Amendment (Streamlining of Future of Financial Advice) Bill 2014
      • implements a range of measures to reduce the regulatory burden on the financial advice industry.

Further information

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.