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Issue 609, 26 September 2016 

In this issue: 

 

Fees and costs 

ASIC has published three Frequently Asked Questions on the ASIC website in relation to fees and costs disclosure. 

They are with respect to: 

whether a vehicle would or would not be regarded as an interposed vehicle on the basis that it is listed or isn’t unlisted. 

 

Productivity Commission superannuation inquiry: alternative default models 

ASFA is drafting a submission in response to the Productivity Commission’s issues paper, Superannuation: Alternative Default Models. 

The Productivity Commission has broadly outlined alternative options for allocation of default superannuation funds. They are: 

A working group has been established which is representative of ASFA’s membership to discuss and clear the submission. If you would like to provide any comments on the Productivity Commission’s paper for consideration by the working group please email James Bond. Please provide comments by Friday 30 September. 

 

ATO reminds small businesses about SuperStream 

As the extended SuperStream compliance deadline of 28 October 2016 for small businesses (those with less than 20 employees) approaches, the ATO has issued a press release “reminding small businesses that super needs to be paid in a new way”. Businesses that continue to make employee superannuation contributions by cheque or electronically by direct transfer or BPAY need to adjust to a standard electronic format. 

The ATO has indicated that they have given small businesses extra time to prepare for SuperStream by providing one more quarterly payment date until the deadline. Deputy Commissioner James O’Halloran wants to make sure that all small businesses are aware that SuperStream compliance is mandatory. 

According to the ATO, more than 470,000 small businesses are now paying their contributions electronically via SuperStream and as a result, in excess of 10.5 million employees are already receiving superannuation payments quicker and more efficiently. 

The one off set up commitment is acknowledged by the ATO however “once established it is easy and ready to use for each contribution cycle”. 

The ATO has prescribed various options for small businesses to start paying the SuperStream way: 

 

Client review and remediation: ASIC guidance 

ASIC has finalised new guidance on client review and remediation. The new guidance, Regulatory Guide 256: Client review and remediation conducted by advice licensees sets out guidance for Australian Financial Services (AFS) licensees who provide personal advice to retail clients (advice licensees). 

Review and remediation generally aims to place affected clients in the position they would have been in if the misconduct or other compliance failure had not occurred. 

The guidance should also be applied to review and remediation that is not related to personal advice to the extent relevant, including for superannuation fund trustees: misconduct or other compliance failure by advice licensees relating to general advice. 

Announcing the release of RG 256, ASIC’s Deputy Chairman Peter Kell noted that “ASIC wants to ensure that advice licensees proactively address any systemic problems caused by their conduct and, where necessary, put processes in place to remediate their clients for loss suffered in a way that is timely, fair and transparent”. 

ASIC will shortly release an amendment to Class Order [CO 14/923] record-keeping obligations for AFS licensees when giving personal advice. 

 

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