Superannuation Alert 13.04.17
Financial Services eBulletin - 13 April 2017
The Lander & Rogers Superannuation Alert is a brief overview of new developments in the superannuation industry.
|Legislative updates||ASIC Cost Recovery Bills||
On 30 March 2017, the Federal Government introduced a number of bills into the House of Representatives to give effect to its proposed industry funding model for ASIC.
According to Treasury's explanatory memorandum, under the proposed legislation "[e]ntities that are regulated by the Australian Securities and Investments Commission will be required to pay a levy that will recover ASIC’s regulatory costs for a financial year from entities that were regulated in that financial year. The levy will be payable by entities in the following financial year once ASIC has issued them a notice setting out their liability to levy".
The legislation is expected to be debated in May when parliament resumes.
|Treasury updates||Consultation paper for self-reporting of contraventions by AFSL holders||Consultation paper||
On 11 April 2017, Treasury released a consultation paper on the self-reporting of contraventions by AFSL holders. The proposed reforms have been developed by the ASIC Enforcement Review Taskforce, formed in October 2016 by the Minister for Revenue and Financial Services.
According to a media release by the Minister for Revenue and Financial Services, the proposed reforms would:
Submissions to the Taskforce are due by 12 May 2017.
|ASIC||Consultation paper for ASIC Financial Services Panel||Consultation paper||
On 11 April 2017, ASIC published a consultation paper on its proposed implementation of a Financial Services Panel.
According to ASIC, "The Panel would comprise financial services and credit industry participants and/or non-industry participants with relevant expertise (e.g. lawyers and academics) and at least one ASIC staff member. The Panel would make administrative decisions on certain matters relating to financial services and credit activities."
The paper indicates that ASIC intends for the panel to initially have responsibility for determining whether banning orders should be made against individuals who have engaged in misconduct in the industry. These responsibilities may be further expanded over time.
Submissions to ASIC about the proposal are due by 23 May 2017.
|AUSTRAC||Draft AML/CTF Rules for customers which are custodians||Draft AML/CTF Rules||
On 3 April 2017, AUSTRAC released draft rules proposing a number of changes to the Anti-Money Laundering and Counter-Terrorism Financing AML/CTF Rules relating to customers who act as custodians.
According to the Explanatory Note release by AUSTRAC, the amendments would "exempt reporting entities from certain identification requirements" for custodians which:
The public consultation period on the proposed amendments closes on 1 May 2017.
|APRA||APRA Insight Issue One 2017||APRA Insight||
APRA recently released its first Insight issue for 2017. In relation to superannuation, it notes that "APRA is actively involved in the Government’s proposals to introduce a legislative framework to facilitate post-retirement products, likely to be known as ‘MyRetirement’ products". Further, APRA notes its expectations for RSE licensees "relating to business planning practices and compliance with the legislative ‘scale test’ for MySuper products [which] is likely to be an area of increased focus for APRA in 2017". It also notes that "APRA is currently considering responses to its consultation on draft prudential guidance released in October 2016 relating to fund transfers and wind-ups".
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.