Superannuation Alert - 6.02.14

Financial Services eBulletin - 6 February 2014

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

  • On 29 January 2014, the Assistant Treasurer, Arthur Sinodinos, released for public consultation a draft Bill and Regulation regarding proposed amendments to the Future of Financial Advice legislation, including:
    • removing the opt-in requirements;
    • removing the annual fee disclosure requirements for pre-1 July 2013 clients;
    • removing the 'catch-all' provision from the best interests duty;
    • explicitly allowing for the provision of scaled advice;
    • exempting general advice from the ban on conflicted remuneration; and
    • broadening the existing grandfathering provisions for the ban on conflicted remuneration.

    Senator Sinodinos said that the federal government expects the Regulations to be made at the end of March 2014 and that the Bill will be introduced into federal Parliament in autumn 2014. Interested parties are invited to comment on the draft legislation, draft regulations and explanatory material. The closing date for submissions is 19 February 2014.

  • With effect from 29 January 2014, the ATO has withdrawn a number of Superannuation Contributions Determinations between SCD 97/1 and SCD 2004/4.
     
  • On 30 January 2014, the Treasury launched the Financial System Inquiry website. The Inquiry is charged with examining how the financial system could be positioned to best meet Australia's evolving needs and support Australia's economic growth. The terms of reference are available on the website. The closing date for initial submissions is 31 March 2014.
     
  • On 30 January 2014, the Auditing and Assurance Standards Board released a revised and expanded Guidance Statement GS 002 Audit Implications of Prudential Reporting Requirements for Registered Superannuation Entities. The Guidance Statement provides guidance to auditors of a Registrable Superannuation Entity reporting pursuant to the prudential reporting requirements specified by APRA in its Prudential Standard SPS 310 Audit and Related Matters (July 2013). The Guidance Statement replaces GS 002 Special Considerations in the Audit of Risk Management Requirements for Registrable Superannuation Entities and Licensees (September 2010).
     
  • On 31 January 2014, the Assistant Treasurer announced the streamlining of consultation arrangements for superannuation as part of the government's efficiency reforms. This includes the cessation of three non-statutory bodies that are no longer required: the SuperStream Advisory Council, the Superannuation Advisory Committee and the Superannuation Roundtable. Senator Sinodinos said that the work of these bodies has been completed and remaining issues are being taken up by forums chaired by the ATO.

Further information

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