Superannuation Alert - 21.08.14

Financial Services eBulletin - 21 August 2014

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

  • On 11 August 2014, APRA added and updated some of its frequently asked questions (FAQs) regarding Prudential Practice Guides for superannuation and the Reporting Framework for registrable superannuation entities (RSEs). It added FAQ 4 for Prudential Practice Guides, and added a number of FAQs on the Reporting Framework: FAQ 99, FAQ 101, FAQ 102, FAQ 103, and FAQ 104; and other Reporting Framework FAQs were updated: FAQ 23, FAQ 44, FAQ 60, FAQ 75, FAQ 86, and FAQ 97.

  • On 11 August 2014, the ATO issued ATO Interpretative Decision 2014/26. The decision provides that a complying superannuation fund may claim a deduction under section 70B of the Income Tax Assessment Act 1936 (Cth) for the loss incurred on the disposal or redemption of a traditional security, where the traditional security is not a segregated current pension asset.

  • On 12 August 2014, ASIC announced that an entity paid $30,600 in penalties following the issuance of three infringement notices for misleading advertisements. The misleading statements related to the entity's costs of establishing or operating a SMSF compared to industry superannuation funds. ASIC deputy chairperson Peter Kell said that "advertisements must accurately reflect the service being offered" as "setting up an SMSF is an extremely important financial decision."

  • On 12 August 2014, ASIC announced that another entity paid $2,040 for an infringement notice penalty for "potentially misleading statements" about the cost of setting up an SMSF using their services.

  • On 13 August 2014, the ATO updated the following pages on its website:
    • Temporary Budget Repair Levy - This page provides information on the Temporary Budget Repair Levy and which taxes and rates have been affected.
    • SuperStream - Induction process - This page provides information on the contributions induction process that the ATO is facilitating to support the orderly adoption of SuperStream for contributions.
    • First SuperStream contribution processed - This page notes that the first SuperStream contribution transactions were successfully processed during the second week of August 2014.
    • Reporting rollovers accurately - This page provides information for APRA-regulated funds on how to report rollovers accurately.

  • On 14 August 2014, the Assistant Commissioner, Peter O'Reilly, gave a speech on audit and review of superannuation funds in 2014. He highlighted ten key focus areas for the ATO in relation to taxing of superannuation funds.

  • On 15 August 2014, ASIC released Macquarie Equities’ financial advice remediation plan, advising that as part of an enforceable undertaking Macquarie will write to both former and current clients about possible remediation for flawed financial advice provided by their adviser network, Macquarie Private Wealth.

  • The Success of Representative Governance on Superannuation Boards (June 2014) report has been released by the McKell Institute. The report looks at the performance and governance structures of certain trustee superannuation funds in comparison to other superannuation funds in the Australia and international market. The purpose of the study is to assess the 2010 Super System Review recommendation that all industry superannuation funds be required to appoint a proportion of independent directors. The report included the finding that there is limited evidence to suggest that requiring independent directors for not-for profit superannuation funds improves performance.

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.