Superannuation Alert 07.04.16

Financial Services eBulletin - 7 April 2016

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

  • On 29 March 2016, ASIC issued 'Regulatory guide 221: Facilitating digital financial services disclosures'. This guide provides guidance to financial service providers which use (or plan to use) technology to deliver financial product disclosures to clients. The guide:
    • outlines that most disclosures can be delivered digitally under Parts 7.6-7.9 of the Corporations Act 2001 (Cth) (the Act);

    • explains that in most situations it will be clear whether the client has provided their email address for the purpose of receiving disclosure under the Act (and this will be sufficient consent);

    • describes the relief available under ASIC Corporations (Facilitating Electronic Delivery of Financial Services Disclosure) Instrument 2015/647 and ASIC Corporations (Removing Barriers to Electronic Disclosure) Instrument 2015/649; and

    • explains that ASIC has prepared 'good practice guidelines' for digital disclosure.
  • On 30 March 2016, the ASIC Corporations (Generic Calculators) Instrument 2016/207 was registered. According to the Explanatory Statement the Instrument "has been issued to preserve the effect of the relief given by ASIC Class Order [CO 05/1122] Relief for providers of generic financial calculators... [to give] providers of generic financial calculators relief from the requirement to hold an AFS licence with an advice authorisation or (where they currently hold a licence) relief from the conduct and disclosure requirements in Divs 2,3 and 4 of Pt 7.7 of the Corporations Act in relation to that advice."

  • On 5 April 2016, APRA Deputy Chairperson, Helen Rowell, gave a speech at the AFR Banking and Wealth Summit in Sydney. Ms Rowell spoke about the areas of corporate governance which APRA believes could be improved in the financial services industry such as:
    • reducing the number of directors on a board to facilitate effective functioning and decision-making;

    • introducing tenure limits in renewal policies as a person's independent judgement is likely to be hindered the longer they sit on the same board; and

    • decreasing the dependence on self-assessment to determine board performance.

Further information

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