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National

ASIC slaps tough penance for fin services misconduct
03 December 2010
In a landmark case, a young broker charged with multiple counts of insider trading has received a four-and-a-half year jail sentence, the highest sentence on record for that offence in Australia. More...

Swan to create fifth pillar in banking
02 December 2010
Treasurer Wayne Swan has plans to offer help to building societies and credit unions to help build a “fifth pillar’’ in Australia’s banking industry. The plan could also include more money for the securitisation market, where small lenders often access funds, and expanding the use of Australia Post branches for credit union deposits and withdrawals. More...

Smaller players exposed by FOFA
02 November 2010
Australia’s major financial services houses are well placed to deal with the regulatory and other changes flowing from the Future of Financial Advice (FOFA) reforms, but some big question marks hang over proposals emerging from the Cooper Review. More...

Class action against Bell Potter over $22m losses
02 December 2010
More than 50 former clients of Bell Potter Securities are now part of a class action against the financial advisers, claiming losses of about $22 million. Documents were filed in the Federal Court of Australia in October on behalf of Bell Potter clients, who claim they lost money due to misleading conduct by the financial firm. More...

Improved Protections for Taxpayer Privacy
30 November 2010
The confidentiality of taxpayers’ personal information held by the Australian Taxation Office has been improved, following the passage of the Tax Laws Amendment (Confidentiality of Taxpayer Information) Bill 2010 through both houses of Parliament. The standardised confidentiality framework largely replicates existing disclosures, but also introduces a limited number of new disclosure provisions in the public interest, including for law enforcement agencies and courts. More...

ASFA calls for removal of $450 SG threshold
30 November 2010
The Association of Superannuation Funds of Australia (ASFA) has called for the Government to remove the “unfair” $450 earnings threshold for superannuation guarantee (SG) contributions, which would help to address the gender gap in superannuation. More...

SMSF trustees to take care with new borrowing rules
30 November 2010
Self-managed super fund (SMSF) trustees need to be aware of new limited recourse borrowing arrangements effective from 7 July, 2010, according to the Self Managed Super Funds Professionals’ Association of Australia (SPAA). More...

ASIC must follow through on Storm litigation
29 November 2010
Ripoll congratulated ASIC for its decision on Friday to pursue legal action against three of the banks associated with Storm Financial, as well as the founders of the financial planning group. Ripoll’s comments came in the context of the regulator saying that although it might pursue litigation against the related parties, it still preferred a commercial resolution to the matter. More...

Advisers operating at low level: ASIC
29 November 2010
ASIC has suggested Australia’s financial advisory problems are due to poor performance from advisers. Medcraft said ASIC intends to work with Financial Services Minister Bill Shorten on the concerns of adviser definitions and competency, as part of the government’s new advisory panel that he will chair. More...

Reforms not thwarting practice takeovers
29 November 2010
Fee-for-service financial planning practices that are looking to acquire rivals are showing no concerns over what impact incoming legislation, including opt-in arrangements and the banning of commissions, could have on practice values. More...

Planner jailed for 12 months
26 November 2010
The former director of Power Financial Planning, who dealt in Westpoint products, has been sentenced to 12 months imprisonment. Stephen McArdle was sentenced in the Magistrates’ Court of South Australia, after being found guilty of aiding the company to provide financial services without an Australian Financial Services Licence. More...

Court compensation bid over Storm collapse
26 November 2010
The Corporate regulator moves to secure compensation for investors in failed Storm Financial, targeting Commonwealth, Macquarie and BoQ. ASIC said it would launch actions against Macquarie Bank and the BoQ franchise, alleging breaches of the Banking Codes of Practice and unconscionable conduct, and will pursue a civil case against Storm Financial’s founders, Emmanuel and Julie Cassimatis. More...
ASIC: ASIC announces intention to commence legal action

Government Providing Strongest Ever Protection for Workers’ Super
24 November 2010
The Assistant Treasurer and Minister for Financial Services and Superannuation has released the Inspector-General of Taxation’s Review into the ATO administration of the Superannuation Gurantee Charge The Government’s Protecting Workers’ Entitlements package includes measures to ensure superannuation entitlements are paid in a timely manner, and that employees and employers are given more information about their superannuation payments. More...

ASIC shuts illegal FX trading website
25 November 2010
ASIC has moved to shut down an unlicensed foreign exchange trading website, which is estimated to have raised at least US$76,000 from investors. ASIC obtained orders in the Supreme Court of New South Wales against AC Trading Co, a company formerly based in Canterbury, Sydney. The court orders require the company to take all necessary steps to close down its website, www.actcfx.com. More...

Inspector general seeks abolishment of oral rulings
23 November 2010
The inspector general of taxation has recommended the abolishment of the oral rulings system to the Australian Taxation Office (ATO), in view of the continuing low level of its usage. The recommendation was published in the inspector general’s ‘Review of aspects of the ATO’s administration of private binding rulings’, which the financial services minister, Bill Shorten, released to the public. More...

Directors held liable on super guarantee
25 November 2010
The Government has said it is about to enter into a consultative process around specific changes to the superannuation regime aimed at protecting workers’ entitlements, including extending the penalty regime on unpaid superannuation guarantee contributions to company directors. The Assistant Treasurer and Minister for Financial Services said the inspector general was of the view that if a company failed and owed superannuation to employees, then the directors of the company should be made strictly liable for the unpaid superannuation liabilities of the company. More...

Government unveils financial advice advisory panel
25 November 2010
The Federal Government has unveiled its 16-member advisory panel for financial advice and professional standards. The panel, to be chaired by the Australian Securities and Investments Commission’s Greg Medcraft, will provide views on professional and ethical standards, competency and training requirements for advisers. More...

Regulator reviewing industry entry standards
25 November 2010
The Australian Securities and Investments Commission is undertaking consultation with the financial services industry on the adequacy of RG 146 as an entry level requirement for the provision of advice, in addition to the ongoing education standards required of advice-givers. One of the objectives of the FOFA package is to improve the professionalism of the industry through new competency standards, but the package made no reference to the entry-level competencies being overseen by ASIC. More...

New research shows Government’s super reforms efficient way to boost super savings
23 November 2010
New Research released by Industry Super Network (ISN) today shows the Government’s proposed super measures will cost half as much as the super measures recommended by the Henry Review and can be implemented far more smoothly. ISN’s latest briefing note ‘Bang for your Buck’ assesses the feasibility of the Henry proposals for super and concludes the Government’s alternative approach is justified for a range of reasons. More...

Practice Notes

Managed investment schemes
November 2010
CAMAC has been requested to examine whether the current statutory framework is adequate for the winding up of MIS, and whether it provides the necessary guidance for liquidators, creditors, investors and growers. An examination of whether REs are unable to restructure a financially viable MIS and advise on the current legislative methods available to companies under the Corporations Act should be adapted to managed schemes. The reporting timeframe is 30 September 2011. Terms of reference...

The definition of derivatives
November 2010
CAMAC has been requested to examine the definition of a derivative; examine the way in which such a definition may be changed to clarify the position of physically settled forward contracts; and suggest options to decrease complexity in this area of the law. The reporting timeframe is 30 September 2011. Terms of reference...

New ASIC investor guide plugs knowledge gaps for retail investors
23 November 2010
Retail investors who are contemplating the risks of trading in contracts for difference (CFDs) have a new resource that aims to provide clear, independent advice on CFDs and the risks they entail. More...

Australian Securities Exchange market assessment report: 1 January 2009 to 31 December 2009
30 November 2010
The report does not deal with more recent matters such as the proposed transaction between ASX and the Singapore Stock Exchange or ASIC’s consultation on the structure of Australia’s equity markets (see ASIC Consultation Paper 145). ASIC has concluded that during 2009, the ASX group licensees had adequate arrangements in place to supervise their markets (including to manage their conflicts of interest) and their clearing and settlement facilities under ss792A(c) and 821A(c) of the Corporations Act. More...

New Business Alliance: AusFIB Details
AusFIN has launched a Charter that they say should guide the Government and the industry in implementing changes to banking and finance that will make sure the industry delivers to consumers, workers and the broader community. The network website is at www.fsunion.org.au.

ASIC warning on unsolicited offers for units in frozen funds
30 November 2010
ASIC has warned consumers about unsolicited offers to buy units in frozen funds. Changes to the law that are expected to come into effect shortly will make it illegal for people to get copies of registers of unit holders if the purpose for obtaining the copy is improper Visit the Fido website for more information on unsolicited offers for units in frozen funds or see Infosheet 11.More...

Legislation

Commonwealth

Legislative Instruments

ASIC Class Order [CO 10/1034]
Legislative Instrument - F2010L03103 Number: CO 10/1034

This Class Order declares that certain ASX-traded instalment warrants are not margin lending facilities (25/11/2010). More...

AASB 2010-6 - Amendments to Australian Accounting Standards – Disclosures on Transfers of Financial Assets - November 2010
24 November 2010
Legislative Instrument - F2010L03082 Number: AASB 2010-6

This Accounting Standard amends AASB 1 - First-time Adoption of Australian Accounting Standards - May 2009 and AASB 7 - Financial Instruments: Disclosures - August 2005. More...

Australian Securities and Investments Commission Regulations 2001
22 November 2010
Legislative Instrument Compilation (current) - F2010C00783

Number: SR 2001 No. 192 Incorporating Amendments to: SLI 2010 No. 278. More...

Corporations Amendment Regulations 2010 (No. 9)
25 November 2010
Legislative Instrument - F2010L03094 Number: SLI 2010 No. 301

These Regulations amend the Corporations Regulations 2001, amending regulation 7.5.88 to permit the Minister to approve the use of excess FIDA funds by ASIC or market operators for purposes related to the transfer of market supervision responsibilities from market operators to ASIC. Regulations 8.2.01, 8.2.02, item 18.1 of schedule 10A, and item 2.3 of Schedule 10AA are amended to update references to New Zealand regulations and to enhance grammatical consistency. More...

National Consumer Credit Protection Legislation Amendment Regulations 2010 (No. 3)
Legislative Instrument - F2010L03104 Number: SLI 2010 No. 303

These Regulations make amendments to the National Consumer Credit Protection Regulations 2010 and the National Consumer Credit Protection (Transitional and Consequential Provisions) Regulations 2010 related to the transition from the current state-based regulatory framework for consumer credit to the national consumer credit protection regime. Date Registered: 25 November 2010. More...

Superannuation Legislation Amendment Act 2010 – Proclamation
25 November 2010
Legislative Instrument - F2010L03106

This Proclamation provides for the commencement of items 1 to 5 of Schedule 2 of the Superannuation Legislation Amendment Act 2010. More...

Acts

Superannuation Legislation Amendment Act 2010
22 November 2010
Number: No. 117, 2010 - An Act to amend the law relating to superannuation, and for related purposes. More...

Superannuation Industry (Supervision) Act 1993
1 December 2010
C2010C00787 – Treasury - Incorporating amendments to Act No. 117 of 2010. More...

Contacts

Melbourne

Jenny Willcocks
Partner
T: +61 (0)3 9321 9909
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Paul Faure
Partner
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.