Welcome to this week’s issue of the KHQ Super Alert. The Law Reform Commission has announced that it will review the regulation of financial services and provide its final report in 2023. Also, ASIC has provided suggested steps that trustees can take to be ready for the new fees and costs disclosure rules.
Law Reform Commission – review of financial services regulation
On 11 September 2020, the Australian Law Reform Commission announced that it will conduct a review into the framework for financial services regulation as part of the Government’s response to the Royal Commission. The terms of reference provide that the Commission has been asked to consider ‘whether, and if so what, changes to the Corporations Act 2001 (Cth) and the Corporations Regulations 2001 (Cth) could be made to simplify and rationalise the law’.
In terms of timing, the Commission has explained that:
- ‘a first interim report focusing on the appropriate use of definitions in corporations and financial services legislation is due by 30 November 2021’;
- ‘a second interim report focusing on regulatory design and the hierarchy of primary law provisions, regulations, class orders, and standards, is due by 30 September 2022;
- ‘a third interim report focusing on potential re-framing or restructuring of Chapter 7 of the Corporations Act is due by 25 August 2023’; and
- ‘a consolidated final report is due by 30 November 2023’.
Click here for details.
Legislation – AML/CTF Rules amendment – COVID early release
On 10 September 2020, the Anti-Money Laundering and Counter-Terrorism Financing Rules Amendment Instrument 2020 (No. 4) was registered on the Federal Register of Legislation. This Instrument extends the current exemption to 31 December 2020 so that trustees do not need to conduct additional customer verification under the AML/CTF Rules when making payments to members under the early release of super scheme.
Click here for details.
ASIC – fees and costs disclosure summary
On 9 September 2020, ASIC published a summary of the current status of the fees and costs disclosure regime and the upcoming changes. ASIC has advised that the things which trustees can do now to get ready for the new rules are to:
- ‘update existing system builds to ensure that you will be able to meet the new requirements for fees and costs disclosure in PDSs and periodic statements in time’;
- ‘review your calculation methodologies, due diligence processes and governance arrangements for collecting and compiling fees and costs information’; and
- ‘consider your arrangements with service providers, people offering investment opportunities and interposed vehicles and how the data is necessary for your products.
Click here for details.
