Regulation

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…

Foreign resident CGT: new bill, old problem

The Government has reintroduced a bill that removes the entitlement to the main residence capital gains tax exemption for foreign residents, with a significant change from the original 2018 bill. There were strong objections to the original bill from Australian…

Cash transaction bill goes to the Senate

A bill to limit the use of cash was passed in the House of Representatives last week and will now be subject to a Senate committee review before it is dealt with in the upper house. The bill has attracted…

Another setback for robo-advice

Two robo-advisors have shut down after the Australian Securities and Investment Commission (ASIC) raised concerns about the quality of advice. Lime FS announced its subsidiaries Plenty Wealth and Plenty Plus have voluntarily ceased their robo-advice operations after ASIC warned that…

Amendments to streamline AML/CTF procedures

Financial institutions and other anti-money laundering reporting entities will have greater access to third party providers of customer due diligence services, under amendments to the anti-money laundering and counter-terrorism financing law introduce into Parliament last week. The amendment will allow…

TPB targets tax agents over false claims

The Tax Practitioners Board is targeting 2000 tax practitioners it has identified as “high risk”. The key area of concern is over-claiming on work related expenses. TPB chair Ian Klug says analysis of 2018 tax returns indicates that over-claiming is…

Grandfathered commissions gone

The bill ending grandfathered conflicted remuneration was finally passed into law this week, with the new measures to take effect from 1 January 2021. The new law enables regulations to provide for a scheme under which amounts that would otherwise…

Concern that mortgage broker best interest exclusions ‘will not have the intended effect’

Wording in the draft mortgage broker best interest bill intended to limit the effect of the new law to mortgage brokers and mortgage intermediaries “will not have the intended effect” according to a leading industry commentator, and needs to be…