Superannuation Alert 09.02.17

Financial Services eBulletin - 9 February 2017

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

Type Subject matter Source Description
Legislative updates Exemptive relief for particular derivative transaction reporting ASIC Corporations (Amendment) Instrument 2017/0036 On 25 January 2017, the ASIC Corporations (Amendment) Instrument 2017/0036 was registered on the Federal Register of Legislation. According to the Explanatory Statement, the instrument amends the ASIC Corporations (Derivative Transaction Reporting Exemption) Instrument 2015/844 to provide exemptive relief for reporting entities "from the requirement to report a trade identifier that is a 'universal transaction identifier' or a 'single transaction identifier', where the reporting entity reports other specified identifiers". Originally due to expire on 31 January 2017, the relief has been extended to address ongoing implementation issues.
Legislative updates Notification of data breaches Privacy Amendment (Notifiable Data Breaches) Bill 2016 On 8 February 2017, the Privacy Amendment (Notifiable Data Breaches) Bill 2016 was passed by the House of Representatives. The Bill proposes to amend the Privacy Act 1988 to "introduce mandatory data breach notification provisions for agencies, organisations and certain other entities that are regulated by the Privacy Act". Under the proposed Bill, an entity would be required to notify the Privacy Commissioner and affected individuals where it has reasonable grounds to believe that an "eligible data breach" has occurred.
Legislative updates Professional standards of financial advisers Corporations Amendment (Professional Standards of Financial Advisers) Bill 2016 On 9 February 2017, the Corporations Amendment (Professional Standards of Financial Advisers) Bill 2016 was passed by both Houses of Parliament and is now waiting to receive Royal Assent. According to the Explanatory Memorandum, the Bill amends the Corporations Act 2001 to "raise the education, training and ethical standards of financial advisers by requiring relevant providers (that is, financial advisers providing personal advice to retail clients on more complex financial products) to hold a degree (or higher or equivalent) qualification, undertake a professional year, pass an exam, undertake continuous professional development (CPD) and comply with a Code of Ethics". It will also impose an obligation on an Australian financial services licensee to ensure that its financial advisers comply with the standards.
Treasury updates Discussion Paper - Social Impact Investing Discussion Paper - Social Impact Investing 

On 28 January 2017, the Treasury released the Discussion Paper - Social Impact Investing for public comment, in response to the Financial System Inquiry. The paper explores "ways to facilitate the growth of the Australian social impact investing market" and seeks views on a "whole of government position", including:

  • "the potential role of the Commonwealth Government in the social impact investing market;
  • principles for social impact investing to guide Commonwealth Government involvement in the social impact investing market; and
  • possible Commonwealth regulatory barriers to the growth of the market", including "the interaction between superannuation law and social impact investing".

Interested parties may lodge submissions electronically by Monday 27 February 2017.

Treasury updates Tax Expenditures Statement 2016 Tax Expenditures Statement 2016

In January 2017, the Treasury made available Tax Expenditures Statement 2016, which provides an overview of 289 of the Australian Government's tax expenditures and, where possible, "the estimated value or order of magnitude of the tax expenditure". The intention of the document is to increase transparency and "facilitate scrutiny of tax expenditures by Parliament and parliamentary committees, the media and the general public". 

Ministerial releases External dispute resolution and complaints framework review Expanded terms of reference

On 3 February 2017, the Minister for Revenue and Financial Services, The Hon Kelly O'Dwyer MP, published an expanded terms of reference for the Government's review of the financial system's external dispute resolution (EDR) and complaints framework (EDR Review). The amended terms of reference include:

  • "the making of recommendations (rather than merely observations) on the establishment, merits and potential design of a compensation scheme of last resort; and
  • consideration of the merits and issues involved in providing access to redress for past disputes."

The Independent Review Panel, intends to make available a separate issues paper on the additional matters and will seek the views of interested stakeholders, before providing a separate report by the end of June 2017.

ASIC No relevant items this week.    
ATO No relevant items this week.    
APRA No relevant items this week.    
Case law update No relevant items this week.    

 

Further information

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