SUPERANNUATION – AUSTRALIA – REGULATION

Senate inquiry blasts ATO on unpaid super

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Original article by Michael Roddan
The Australian – Page: 23 : 3-May-17

It is estimated that about three million Australian workers do not receive their compulsory superannuation contributions, which equates to around $A6bn per year. A Senate economics committee inquiry has recommended that the Australian Taxation Office should adopt a more proactive approach to non-compliance with the super guarantee regime. The ATO’s focus at present is on a self-reporting system for employers who fail to pay some or all of the guarantee.

CORPORATES
AUSTRALIA. SENATE STANDING COMMITTEE ON ECONOMICS, AUSTRALIAN TAXATION OFFICE, AUSTRALIAN LABOR PARTY, LIBERAL PARTY OF AUSTRALIA, AUSTRALIA. OFFICE OF THE AUSTRALIAN SMALL BUSINESS AND FAMILY ENTERPRISE OMBUDSMAN, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIA. DEPT OF FINANCE, INDUSTRY SUPER AUSTRALIA PTY LTD

Multiple SMSF strategy may prove illegal

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Original article by Sally Patten
The Australian Financial Review – Page: 5 : 24-Apr-17

Changes to superannuation tax rules from 1 July 2017 may prompt some investors who already have one self-managed super fund (SMSF) to set up a second one. However, the Australian Taxation Office has indicated that it will keeping a close eye what it perceives as any attempt to reduce tax by setting up a second SMSF. Fines, penalties and even disqualification are possible remedies available to the ATO.

CORPORATES
AUSTRALIAN TAXATION OFFICE, SMSF ASSOCIATION, HLB MANN JUDD

Westpac subsidiary taken to court on super advice

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Original article by Lucy Battersby
The Age – Page: 19 : 23-Dec-16

The Australian Securities & Investments Commission has launched legal action against Westpac Securities Administration Limited (WSAL) and BT Funds Management (BTFM). ASIC alleges in documents filed with the Federal Court’s New South Wales registry on 21 December 2016 that WSAL and BTFM breached the "best interests duty" regulations on 15 occasions during a sales campaign promoting superannuation products.

CORPORATES
AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, FEDERAL COURT OF AUSTRALIA, WESTPAC SECURITISIES ADMINISTRATION LIMITED, BT FUNDS MANAGEMENT

Super trustees ‘fail to act’ on liquidity risks

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Original article by Alice Uribe
The Australian Financial Review – Page: 17 : 21-Dec-16

The Australian Prudential Regulation Authority has expressed concern that many trustees of superannuation funds are not using the results of liquidity stress testing when making investment decisions. APRA has noted that while super funds have made progress with regard to liquidity stress testing, further improvement is needed. Rice Warner adds that Australia’s ageing population presents a major liquidity risk for super fund trustees.

CORPORATES
AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, RICE WARNER ACTUARIES PTY LTD

Review may force funds to merge

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Original article by Michael Roddan
The Australian – Page: 23 : 22-Sep-16

Superannuation industry experts suggest that any move to introduce alternatives to the default super fund system could result in more consolidation in the sector. Potential options that have been canvassed by the Productivity Commission in an issues paper include a tender system for default funds. Financial Services Council CEO Sally Loane notes that smaller funds with high fees may be forced to merge if the default super regime is opened to more competition.

CORPORATES
AUSTRALIA. PRODUCTIVITY COMMISSION, FINANCIAL SERVICES COUNCIL, AUSTRALIAN INSTITUTE OF SUPERANNUATION TRUSTEES, RICE WARNER ACTUARIES PTY LTD, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

Super review to scrutinise banks’ power

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Original article by Sally Rose, Sally Patten
The Australian Financial Review – Page: 3 : 3-Aug-16

The market power of bank-owned retail superannuation funds will be scrutinised by the Productivity Commission as part of its review of vertical integration in the banking sector. The Commission has released a draft report on the first stage of its review, and a consultation process on the draft report remain open until 9 September 2016. Productivity Commission deputy chair Karen Chester says a key issue is whether super fund members are benefiting from the economies of scale generated by vertical integration.

CORPORATES
AUSTRALIA. PRODUCTIVITY COMMISSION, INDUSTRY SUPER AUSTRALIA PTY LTD, FINANCIAL SERVICES COUNCIL, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

ASIC puts heat on unlawful spruikers

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Original article by Duncan Hughes
The Australian Financial Review – Page: 33 : 7-Dec-15

The Australian Securities & Investments Commission will continue to target individuals and companies that promote the use of self-managed superannuation funds to invest in the property market. The Australian Taxation Office estimates that SMSFs account for about 33 per cent of the $A1.7bn that is held by super funds. Meanwhile, the value of limited-recourse loans taken out by SMSFs has blown out from around $A755m to $A15bn in the last five years.

CORPORATES
AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN TAXATION OFFICE, PARK TRENT PROPERTIES GROUP PTY LTD, SUPREME COURT OF NEW SOUTH WALES, OMNIWEALTH PTY LTD, SUPERANNUATION WAREHOUSE AUSTRALIA, FEDERAL COURT OF AUSTRALIA

Target super literacy, says Deloitte

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Original article by Sally Rose
The Australian Financial Review – Page: 17 : 4-Dec-15

Russell Mason of Deloitte notes that some trustees of superannuation funds voluntarily undertake a course for financial product advisers, but he argues that it should be compulsory for all of them. The issue of governance standards in the sector is again under scrutiny after cross-bench senators rejected the Australian Government’s proposal for one-third of all super funds’ directors be independent. Former Reserve Bank governor Bernie Fraser will review governance standards in the industry.

CORPORATES
DELOITTE TOUCHE TOHMATSU LIMITED, RESERVE BANK OF AUSTRALIA, INDUSTRY SUPER AUSTRALIA PTY LTD, AUSTRALIAN INSTITUTE OF SUPERANNUATION TRUSTEES, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN INSTITUTE OF COMPANY DIRECTORS, THE ASSOCIATION OF SUPERANNUATION FUNDS OF AUSTRALIA LIMITED, FINANCIAL SERVICES COUNCIL

APRA puts union super on notice

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Original article by Sally Rose, Joanna Mather, Sally Patten
The Australian Financial Review – Page: 1-Dec : 22-Oct-15

Australian superannuation funds will have to ensure that 33 per cent of their directors are independent from mid-2017 under proposed legislation. The Australian Prudential Regulation Authority’s Helen Rowell says the new laws will also require a majority of directors to be independent from mid-2019, unless a super fund can present a strong argument to justify not doing so. Rowell has rejected claims by industry super funds that returns would be lower under the proposed regime.

CORPORATES
AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, INDUSTRY SUPER AUSTRALIA PTY LTD, CONSTRUCTION AND BUILDING UNIONS’ SUPERANNUATION FUND, UNISUPER LIMITED, SUNSUPER PTY LTD, AUSTRALIANSUPER PTY LTD, AUSTRALIAN INSTITUTE OF SUPERANNUATION TRUSTEES, AUSTRALIA. FAIR WORK COMMISSION, FINANCIAL SERVICES COUNCIL

Calls to limit $21b super fees ‘gouge’

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Original article by Joanna Mather
The Australian Financial Review – Page: 7 : 28-Aug-15

National Seniors Australia has called for rules to force superannuation managers to cut back on fees, which amounted to $A21 billion a year. If funds did not voluntarily moderate fees, the regulator might have to step in, CEO Michael O’Neill said. Grattan Institute CEO John Daley told the National Reform Summit there was insufficient competition in the super industry to drive down fees. He has proposed a plan to save $A5 billion in fees which involves a tender process and a series of no-frills super products.

CORPORATES
NATIONAL SENIORS AUSTRALIA LIMITED, GRATTAN INSTITUTE, SUPERRATINGS PTY LTD, KPMG, AUSTRALIAN LABOR PARTY