Regulation

Compliance failures common in super fund advice to members

Less than half of the financial advice provided by superannuation funds to their members was fully compliant with advisers’ best interests duty and related obligations, a review has found. And a significant number of members were at risk of suffering…

ASIC powers beefed up

The Hayne fallout continues, with the introduction into Parliament last week of a bill to give ASIC greater powers. Financial Sector Reform (Hayne Royal Commission – Stronger Regulators 2019 Measures) Bill 2019 harmonises ASIC’s search warrant powers, improves the regulator’s…

Mortgage broker best interests duty bill introduced

The Government has taken action on its promise to introduce a best interests duty for mortgage brokers, tabling a bill in Parliament last week that addresses conflicted remuneration and requires mortgage brokers to act in the best interest of consumers.…

ASIC approach to adviser code welcomed

The Australian Securities and Investments Commission has followed up its announcement that it will grant relief from the requirement for financial advisers to comply with the financial adviser code of ethics, giving details of the steps AFS licensees must take…

Insurance in super reg changes

Superannuation funds will have to ensure that members can “easily opt out” of insurance cover, under changes to the rules covering insurance in super. The Australian Prudential Regulation Authority has released proposed revisions to its standard covering insurance in superannuation…

Gaps appear in the Retirement Income Review

The Retirement Income Review panel appears unlikely to address whether the value of the family home should be included in the means test for the Age Pension. Nor is it clear that it will address the hotly debated issue of…

ATO gives its blessing to SMSF investment in fractional property

The Australian Taxation Office has provided a further update on the implications of the Aussiegolfa case, confirming its view that a self-managed super fund trustee could contravene the sole purpose test by investing in a sub-fund of the DomaCom Fund…

Minister to cede financial markets powers to regulators

Ministerial power to regulate financial market operators will be transferred to regulators, under proposed financial market infrastructure regulatory reform. The Council of Financial Regulators has issued a consultation paper, outlining proposed changes to the regulatory regime for market operators, benchmark…

ATO clarifies its approach to investment in DomaCom funds

Fractional property investment company DomaCom has received clarification from the Australian Taxation Office about its approach to compliance when a self-managed super fund invests in a DomaCom sub-fund and where a related party of the SMSF may be a tenant.…

Push to remove complexity from advice rules

Australia’s accounting bodies have joined forces to advocate for a more efficient and better harmonised regulatory system for advisers. Three accounting bodies – CPA Australia, the Institute of Public Accountants and Chartered Accountants Australia and New Zealand – have launched…