Superannuation Alert - 06.09.12

Financial Services eBulletin - 6 September 2012

The Lander & Rogers Superannuation Alert is a brief overview of new developments in the superannuation industry and is in addition to our Superannuation Update, which analyses the main developments of interest in more detail.

  • On 24 August 2012, ASIC updated its website with information on change of control of an Australian Financial Services (AFS) licensee. The information states that, in accordance with regulation 7.6.04(1)(i) of the Corporations Regulations 2001 (Cth), an AFS licensee must notify ASIC when it becomes aware of any change in control of the licensee within 10 business days. 

  • On 27 August 2012, APRA published a new FAQ concerning APRA's draft prudential standards: FAQ 33: Will RSE licensees be able to offer insurance benefits to members via general insurance (rather than only life insurance) policies? 

  • On 27 August 2012, the FSC released a draft standard on a superannuation corporate governance policy. The FSC has commenced a two month consultation process on the proposed standard. The standard is intended to apply to FSC members with a public offer or extended public offer licence from 1 July 2013. The standard has a number of key elements, including:
    • Requirement for majority independent directors;
    • Requirement for independent chair;
    • Prohibition on multiple and competing directorships;
    • Disclosure of an environmental and social governance risk management policy; and
    • Proxy voting record disclosure.

  • On 27 August 2012, the FSC also released a draft standard for proxy voting which covers superannuation funds and managed investment schemes. The proposed revisions ensure that fund managers and superannuation funds provide high levels of information to members on their voting activities. 

  • On 28 August 2012, the Treasury released Exposure Draft – Tax Laws Amendment (2012 Measures) Bill 2012: Roll-overs to self-managed superannuation funds and the Explanatory Memorandum for public comment. The draft Bill, if passed, will amend the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 No. 169 (Cth). The effect of the proposed amendments is that the Act will regulate the roll over of funds from a superannuation fund (that is not an SMSF) to an SMSF. Comments on the draft Bill should be sent to Treasury by 14 September 2012. 

  • On 28 August 2012, Treasury invited submissions on a proposed intergovernmental agreement with the United States. In March 2010 the United States Congress passed the Foreign Account Tax Compliance Act (FATCA) which imposed due diligence and reporting obligations on foreign financial institutions. In response to these concerns the Australian government is considering the feasibility of an intergovernmental agreement in order to minimise compliance costs for Australian stakeholders and to enhance tax co-operation agreements with Australia and the US. Submissions are due on 28 September 2012. 

  • On 29 August 2012, ASFA published a media release on its Standard Risk Measure (SRM) which was issued by the FSC and ASFA in 2011. The SRM is subject to review and ASFA is seeking feedback from stakeholders.

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.