Superannuation Alert - 29.07.15
Financial Services eBulletin - 29 July 2015
The Lander & Rogers Superannuation Alert is a brief overview of new developments in the superannuation industry.
• On 21 July 2015, the Administrative Appeals Tribunal (AAT) handed down its decision in OEM Supplies Pty Ltd and Commissioner of Taxation  AATA 532. OEM Supplies Pty Ltd (OEM) sought a review of the Commissioner of Taxation's (Commissioner) determination that OEM failed to meet its superannuation guarantee obligations with respect to an individual who the Commissioner considered to be OEM's employee (but which OEM engaged as an independent contractor). The AAT found that the individual in question was not an employee of OEM either at common law or under the extended definition in section 12(3) of the Superannuation Guarantee (Administration) Act 1992 (Cth). Accordingly, the AAT ordered that the Commissioner's decision be set aside and remitted for reconsideration by the Commissioner.
• On 22 July 2015, the AAT handed down its decision in Jeffers and Australian Securities and Investments Commission  AATA 537. Prior to this decision, ASIC made a banning order against the applicant, Mr Jeffers, as it believed that Mr Jeffers was likely to contravene a financial services law. ASIC's decision was shaped by its view that Mr Jeffers "knew or ought reasonably to have known that each of the relevant representations made in each PDS" issued by a company of which Mr Jeffers was a director were false or misleading. Mr Jeffers sought (among other things) orders staying the operation of ASIC's decision. The AAT dismissed Mr Jeffers' application, and in doing so commented that an "important object served by a banning order and particularly by its publication which bears upon the Tribunal’s consideration of an application made under s 41(2) [of the Administrative Appeals Tribunal Act 1975 (Cth)] is its general deterrent effect…[which] serves to maintain public confidence in the financial services market."
• On 24 July 2015, the Assistant Treasurer The Hon Josh Frydenberg MP announced that the Commonwealth Government is commissioning a capability review of ASIC to "consider how ASIC uses its current resources and powers to deliver its statutory objectives and assess ASIC’s ability to perform as a capable and transparent regulator." The review will be conducted by an expert panel, which will consult with private sector businesses regulated by ASIC, peak bodies, regional and consumer representatives and other stakeholders. The review is due complete by the end of 2015.
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