Superannuation Alert 27.11.15

Financial Services eBulletin - 27 November 2015

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

  • On 19 November 2015, APRA released its Quarterly Superannuation Performance publication and the Quarterly MySuper Statistics report for the September quarter of 2015. Some key points noted include:
    • superannuation assets totalled $2.0 trillion at the end of the quarter, an increase of 6.5% over the previous year;
    • assets attributable to MySuper products totalled $433.1 billion at the end of the quarter, an increase of 15.4% over the previous year, and there was a 24% decrease in total assets in accrued default amounts to $51.9 billion;
    • contributions totalled $24.4 billion in the quarter, an increase of 2.1% increase over the previous year; and
    • total benefit payments totalled $16.0 billion this quarter, an increase of 7.6% over the previous year.
  • On 24 November 2015, the Corporations Amendment (Streamlining of Future of Financial Advice) Bill 2014 was passed by Senate with 29 Government amendments. The Schedule of amendments made by the Senate document sets out various minor amendments, including a change to the name of the Bill to the Corporations Amendment (Financial Advice Measures) Bill 2015. The Bill was originally introduced repeal some changes made by the Future of Financial Advice reforms, including the removal of the 'catch all' provision, from the list of steps an advice provider may take in order to satisfy the best interests obligation. The Bill will now revert back to the House of Representatives for consideration.

  • On 25 November 2015, AUSTRAC released a Draft Privacy Impact Assessment - Amendments to Chapter 4 of the Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Rules in order to "seek stakeholder feedback on the potential privacy impacts of the proposed amendments". Under proposed changes to Chapter 4 of the AML/CTF Rules, reporting entities are given "discretion to collect identification information ‘about’ customers rather than directly from the customer". The Privacy Impact Assessment considers the "potential privacy impact of the changes and makes recommendations that may be amended as a result of stakeholder consultation". AUSTRAC is seeking feedback on:
    • whether reporting entities anticipate collecting information about a customer from sources other than the customer; and
    • whether reporting entities anticipate their privacy policy will need to be amended if the new process is adopted.
    • The closing date for submissions is 9 December 2015.
  • On 25 November 2015, AUSTRAC released new guidance on key terms used in the AML/CTF Rules for customers who may be "politically exposed persons" (PEPs). The new guidance has been incorporated into Chapter 6 of the AUSTRAC compliance guide (Customer due diligence procedures).

  • In Harrison v Retail Employees Superannuation Pty Limited and Anor [2015] NSWSC 1665, the Supreme Court of New South Wales held that a superannuation fund member was entitled to a $43,000 total and permanent disablement (TPD) benefit as the disablement event occurred within the 12 month period for automatic insurance cover under the fund's insurance policy.

Further information

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