Superannuation Alert - 15.11.12

Financial Services - 15 November 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 31 October 2012 the Parliamentary Joint Committee on Corporations and Financial Services tabled its report entitled "Statutory Oversight of the Australian Securities and Investments Commission" in the Federal Parliament. Among other things, the report considers:

    • the collapse of Trio Capital;
    • the Future of Financial Advice (FOFA) reforms;
    • the superannuation industry in Australia;
    • domestic licensed markets;
    • frozen funds; and
    • ASIC's resources and regulatory approach.
  • On 7 November 2012 the Treasurer issued a media release to announce that "Australia has commenced formal discussions for an intergovernmental agreement with the United States to minimise the impact for Australians of the United States' Foreign Account Tax Compliance Act (FATCA) in Australia." The release notes that a concluded agreement "will help ensure Australian tax laws are effectively enforced so that Australian businesses and individuals who pay their fair share of tax are not disadvantaged by those who seek to evade their tax obligations."

  • On 7 November 2012 the NSW Supreme Court handed down its decision in the case of Sharp v Maritime Super Pty Ltd NSWSC 1350, which involved a challenge to a superannuation trustee's refusal of a member's application for a total and permanent disablement benefit.
  • On 8 November 2012 Treasury released an exposure draft of its Superannuation Legislation Amendment Regulation 2012, which forms part of its MySuper reforms. Treasury's website explains that "(the) exposure draft regulations contain provisions relating to: 

    • "significant event notice requirements;
    • insurance requirements in respect of death;
    • meaning of permanent incapacity;
    • operating standards on self-insurance and permitted types of insurance;
    • successor fund transfer rules not applying to the transfer of accrued default amounts;
    • notification for accrued default amounts attributed to the MySuper product; and
    • an exemption from providing opt-out life and total and permanent disability insurance."
        
  • An explanatory memorandum for the draft regulations can be found here.
      
  • On 9 November 2012 APRA's 2011-2012 Annual Report was tabled in the Federal Parliament. The Report contains chapters on the authority's framework, supervisory activities, cooperative activities, performance and governance.
       
  • On 9 November 2012 the ATO released the minutes of its Superannuation Technical sub-group's meeting of 4 September 2012. Among other things, the agenda featured discussion of ATO interpretive decisions, consultation issues and death benefit issues.

Further information

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