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National
Goldman Sachs pay $620m to settle SEC lawsuit
16 July 2010
Goldman Sachs & Co has paid the US regulator more than $620 million (US$550 million), the largest penalty ever levelled against a financial firm, for allegedly misleading investors regarding the deals behind its sub-prime mortgage product. More...
Australian Economic Statement July 2010
14 July 2010
The Economic Statement released shows the Australian economy continues to lead the developed world, with a strong employment outlook and the Budget on track to return to surplus in three years, three years early and comfortably ahead of any major advanced economy. This Economic Statement provides further details of the breakthrough agreement on resource taxation reached by the Prime Minister, which will apply from 1 July 2012. More...
Legalsuper puts custody to tender
15 July 2010
The $1.3 billion legalsuper is tendering its custody mandate for the first time in eight years. Legalsuper’s current custodian the National Australia Bank has been with the fund since it achieved public offer status back in 2002. More...
Superannuation Complaints Tribunal defends its budget
15 July 2010
The Federal Court attacked the Superannuation Complaints Tribunal for rejecting the complaint of a widow against her late husband’s super fund because it claimed it was outside its jurisdiction. The court said the tribunal appeared under-resourced and was in danger of throwing out some of the large volume of complaints it receives. More...
Firm has to cash up and pay workers’ superannuation
14 July 2010
The federal workplace watchdog has taken unprecedented action to force a company into liquidation in a bid to retrieve more than $530,000 in backpay owed to 45 Melbourne workers. The Fair Work Ombudsman investigated the company after the Textile Clothing and Footwear Union lodged a complaint about unpaid superannuation contributions. More...
Super result for super watchdog
12 July 2010
The Cooper Review of Australia’s Superannuation System has recommended the Australian Prudential Regulation Authority be given greater powers to oversee and promote the efficiency and transparency of the national superannuation system. More...
Full disclosure a core need
14 July 2010
The Australian Prudential Regulation Authority is requiring superannuation funds to label their investment options in a standard way. Under the changes, the labelling of the investment options will better reflect the risk being taken by investors. More...
APRA research hammers retail costs
13 July 2010
New research by the Australian Prudential Regulation Authority has identified a wide disparity between the fees paid by retail superannuation funds and those paid by not-for-profit funds, suggesting that the retail fees reflect revenue generation rather than actual costs. More...
CFD health check prompts more oversight
13 July 2010
ASIC has stepped up its monitoring of the contract for difference market and proposed new measures to improve the market’s transparency, following a study that found consumers are still confused about the risks when trading CFDs. A number of recommendations for the CFD market including disclosure benchmarks, continued monitoring of CFD advertising and the publication of an investor guide to CFDs have been proposed. More...
Government Commences the Next Stage in Investment Manager Regime
12 July 2010
The Government has commenced a further stage in the development of an investment manager regime (IMR) by requesting that the Board of Tax consider the design of an IMR as part of its review of collective investment vehicles (CIVs). The Board of Taxation review will report on the design of a comprehensive IMR, covering the taxation of Australian and offshore assets. The proposal for an IMR arose from Recommendation 3.1 of the Australian Financial Centre Forum report has been given in principle support by the Government. More...
Pressure on professionalism sees jump in take-up of SMSF accreditation
12 July 2010
The Self-Managed Super Fund Professionals’ Association is about to update and extend its education and accreditation program amid evidence of higher demand from planners. Updated education standards as part of its specialist accreditation program, which covers a broader range of competencies including investment strategies, managing risk and superannuation choice will be released by the SPAA. More...
Tax Office to target cash economy in crackdown
9 July 2010
The Tax Office will expand its use of data matching to crack down on businesses using cash transactions to hide income. The ATO has also identified refund fraud, wealthy Australians and tax-secrecy havens as some of its top priorities in its compliance program for the current financial year. Another focus will be on ensuring employers lodge business activity statements on time, meet their pay- as-you-go obligations and make correct superannuation payments to their workers. More...
ASX power handover to ASIC heralds new trading rules
9 July 2010
Chris Bowen, minister for financial services, superannuation and corporate law, announced ASIC will start supervising the ASX from August this year. Formal approval will be granted once the Corporations Amendment (Financial Market Supervision) Act 2010 start in 1 August. This follows the Federal Executive Council formalising the Corporations (Fees) Amendment Regulations 2010, which details the proposed fee structure that ASIC will charge to recover the costs of supervision. More...
Government keen to fast-track Cooper reforms
7 July 2010
Minister for Superannuation Chris Bowen has outlined two key Cooper review recommendations the government wants to fast-track. Cooper also signposted the need for governance of superannuation to be consolidated into “one place”, distributed as it currently is across a number of different jurisdictions including the Australian Prudential Regulation Authority, the Corporations Act, the Superannuation Industry Supervision Act and the Australian Taxation Office. More...
APRA releases research on superannuation outsourcing
12 July 2010
The Australian Prudential Regulation Authority has released the results of research into outsourcing by large APRA-regulated superannuation funds. More...
Australian superannuation outsourcing: fees, related parties, and concentrated market
Author: Kevin Liu, Kevin; Arnold, Bruce R
Source: APRA, 12 July 2010; 37p More...
Practice Notes
ASIC sets dispute resolution standards for unlicensed lenders
6 July 2010
ASIC released guidance to clarify dispute resolution requirements for unlicensed carried over instrument lenders (unlicensed COI lenders). More...
ASIC issues report on relief applications for 2009
5 July 2010
We have released a report outlining recent decisions on applications for relief from the corporate finance, financial services and managed investment provisions of the Corporations Act 2001 between 1 August 2009 to 30 November 2009. More...
Legislation
Commonwealth
Corporations (Fees) Amendment Regulations 2010 (No. 3)
13 July 2010
SLI 2010 No. 214 - These Regulations amend the Corporations (Fees) Regulations 2001 to provide the detail of how ASIC will recover the costs incurred by it in taking over the responsibility for supervising domestic licensed financial markets. More...
Life Insurance (prudential standard) determination No. 8 of 2010 - Prudential Standard LPS 3.04 - Capital Adequacy Standard
13 July 2010
Legislative Instrument - F2010L01896 Number: LPS 3.04
This instrument determines Prudential Standard LPS 3.04 Capital Adequacy Standard. More...
Corporations Amendment (Financial Market Supervision) Act 2010 – Proclamation
12 July 2010
Legislative Instrument - F2010L01943
This Proclamation provides for the commencement of Schedule 1 of the Corporations Amendment (Financial Market Supervision) Act 2010. More...
Superannuation Industry (Supervision) Amendment Act No 100 of 2010
7 July 2010
An Act to amend the Superannuation Industry (Supervision) Act 1993, and for related purposes. Limited recourse borrowing arrangements. More...
Cases
Australian Securities & Investments Commission v GDK Financial Solutions Pty Ltd (in liq) & Ors [2010] FCA 710
Contract – terms – construction – deed of purchase – purchase of interests of investors in unregistered managed investment scheme which was being wound up by the Court – terms of purchase deed expressed to include whole of entitlement of vendor in relation to scheme – whether deed effective to transfer equitable interests claimed by vendor in relation to land which was an asset of scheme, which vendor claimed to hold in priority to claims of investors in scheme – examination of circumstances surrounding entry into purchase deed – application of objective test – whether course of negotiations would have led reasonable people to regard subject matter of purchase as including all entitlements of vendor. More...
SAS Trustee Corporation v Patterson [2010] NSWCA 167
Appeal – statutory appeal – District Court Act 1973, s 142N – party aggrieved by an award of the District Court in point of law. Superannuation – police superannuation – entitlement to additional amount of annual superannuation allowance – Police Regulation (Superannuation) Act 1906, s 10(1A)(b) – disabled member of the police force – benefits – no requirement to make application for payment and no time constraint prior to 30 June 2006. Statutes – interpretation – Police Regulation (Superannuation) Act 1906 – effect of s 10(1BA) inserted by the Superannuation Legislation Amendment Act 2006 – right accrued before the date of its operation – no contrary intention to affect accrued rights – construction in accordance with the Interpretation Act 1987, s 30(1)(c). More...
Contacts
Jenny Willcocks
Partner, Melbourne
T: +61 (0)3 9321 9909
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Paul Faure
Partner, Melbourne
T: +61 (0)3 9321 9904
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Disclaimer
The information in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, we do not guarantee that the information in this newsletter is accurate at the date it is received or that it will continue to be accurate in the future.