Superannuation Alert - 18.7.12
Financial Services eBulletin - 18 July 2012
Lander & Rogers' Superannuation Alert is a brief overview of new developments in the superannuation industry and is in addition to our Superannuation Update, which analyses the main developments of interest in more detail.
- On 10 July 2012 AUSTRAC released a new report entitled AUSTRAC typologies and case studies report 2012 providing 21 case studies to " Australian businesses about their money laundering and terrorism financing risks and them recognise and mitigate these risks". Case study 8 relates to superannuation.
- On 12 July 2012 the Corporations Amendment Regulation 2012 (No. 4) (Cth) was registered on the Federal Register of Legislative Instruments. According to the Explanatory Statement the regulation amends the Corporations Regulations 2001 in line with the Corporations Amendment (Future of Financial Advice) Act 2012 and the Corporations Amendment (Further Future of Financial Advice Measures) Act 2012 to:
- "exclude product fees from the definition of an ‘ongoing fee arrangement’;
- delay the application date to 1 July 2013 for the ban on conflicted remuneration with respect to benefits that relate to group life risk insurance inside superannuation funds and all life risk insurance policies in default superannuation funds;
- exclude benefits given for advice relating to interests in time-sharing schemes from the ban on conflicted remuneration; and
- further the scope of the exemptions from the ban on conflicted remuneration for certain non-monetary (‘soft-dollar’) benefits and introduce record keeping requirements in relation to those benefits."
- On 12 July 2012 ASIC registered ASIC Class Order [CO 12/622]. According to the Explanatory Statement, the Order extends by a further 12 months the operation of ASIC Class Order [CO 11/554]: an Order providing relief from the operation of the current 'long term performance reporting regime'. The time extension allows "additional time for the proposed amending regulations to be made to implement the refinements announced by the Minister".
- On 13 July 2012 the Corporations (Fees) Amendment Regulation 2012 (No. 1) was registered on the Federal Register of Legislative Instruments. It amends the Corporations (Fees) Regulations 2001 to increase the application fee and annual lodgement fees for an Australian Financial Services Licence. The Explanatory Statement advises that the increases are "intended to offset the cost of providing additional funding to ASIC to enhance its regulation of the financial services sector in Australia".
- Also on 13 July 2012 the Minister for Financial Services and Superannuation, Bill Shorten issued a media releaseannouncing that the Government "will introduce penalties to deter promoters of illegal early release superannuation schemes". Draft legislation to give effect to the announcement has not yet been released.
- APRA has published 3 new questions and answers to its Prudential Standards - Frequently Asked Questions webpage, as well as 3 new questions and answers to its MySuper - Frequently Asked Questions webpage.
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.