Archived News for Finance Sector Professionals

Since acquiring management of the AMP Capital Community Infrastructure Fund in September 2010, AMP Capital has acquired four additional social infrastructure assets bringing the total number of assets in the portfolio to eight.

The report of the Parliamentary inquiry into the collapse of Trio Capital, the largest superannuation fraud in Australian history, has found that key checks and balances in the Australian financial and superannuation system failed to identify the fraud.

The ANZ bank has announced plans to invest a further $300 million in its China operations to support further growth in the country.

The Commonwealth Bank has posted $1.75 billion in earnings in the March 2012 quarter, up from $1.7 billion this time last year.

Heritage Bank has announced it will launch new ASX-listed debt securities, to be known as Heritage Bank Retail Bonds, to raise approximately $125 million.

The Australian Competition and Consumer Commission (ACCC) has completed a review of a number of notifications that require the mortgage brokers of four lending businesses to belong to the Mortgage Finance Association of Australia (MFAA).

The ANZ bank has dropped its variable rates for mortgages and business lending by 0.37 per cent, dropping to 7.05 per cent.

The Federal Government has released draft regulations of the Government’s plans to reform and modernise the country’s insolvency framework.

The Federal Government will start paying out its new Household Assistance Payments, paying a total of $35 million to over 1.6 million Australian families over the coming months.

Recent figures released by the Australian Securities and Investments Commission (ASIC) show that insolvencies are remaining at high levels.

Federal Parliamentary Secretary to the Treasurer, Bernie Ripoll, has announced the appointment of Belinda Gibson and Ian Purchas as Members of the Financial Reporting Council (FRC).

Changes to the Australian superannuation system has sparked anger from the financial services industry.

The Australian Prudential Regulation Authority (APRA) has released a discussion paper on proposed arrangements for the authorisation of MySuper products.

Accompanying the discussion paper is a draft authorisation application form together with instructions, as well as draft Prudential Standard SPS 410 MySuper Transition (SPS 410) which sets out requirements for trustees moving member balances into a MySuper product.

On 3 November 2011, the Federal Government introduced the Superannuation Legislation Amendment (MySuper Core Provisions) Bill 2011 into Parliament under which a registrable superannuation entity (RSE) licensee intending to offer a MySuper product must seek authorisation from APRA.

The MySuper authorisation package released today builds on APRA’s release on 27 April 2012 of draft prudential standards for superannuation. A number of elements in the draft authorisation application form request the submission of documents that will be required under the prudential standards.

APRA Deputy Chairman Ross Jones said the proposed authorisation requirements have been carefully aligned with the legislative requirements. 

‘We encourage RSE licensees considering offering a MySuper product to use the draft application form and instructions in discussions with their Board on their plans, and to open discussions with APRA supervisors on the issue as soon as possible.’

The authorisation process for RSE licensees wishing to offer MySuper products will commence from 1 January 2013. Once authorised, RSE licensees can offer these products from 1 July 2013 onwards.

Draft SPS 410 outlines requirements for all RSE licensees during the transition period from 1 July 2013 to 1 July 2017, by which date all accrued default amounts must be in a MySuper product except in limited circumstances.

The consultation package can be found on the APRA website at: www.apra.gov.au/Super/Pages/Superannuation-reforms-2011-2013.aspx

The Federal Governmenthas announced in the Budget it will increase the application fee to obtain an Australian financial services (AFS) licence to cover the costs of implementing the Future of Financial Advice reforms.

The Australian Securities and Investments Commission (ASIC) has been allocated $10.7 million over four years to develop and maintain an on‑line registration system for auditors of self managed superannuation funds (SMSFs).

As part of the registration process, ASIC will develop a competency exam for SMSF auditors. ASIC will also be responsible for the deregistration of non‑compliant auditors. Auditors may begin to register with ASIC from 31 January 2013.

The Government will also provide $10.6 million over five years (including $1.5 million in capital funding in 2011‑12) to the Australian Taxation Office to police registered auditors, check their compliance with competency standards set by ASIC and refer auditors to ASIC, for enforcement action.

The cost of this measure will be offset by increases in the SMSF levy and fees charged by ASIC for sitting the competency exam.

The Federal Budget has provided $467.1 million over seven years (including $41.2 million in 2016-17 and $40.9 million in 2017-18) to implement the SuperStream reforms that are part of the package of Stronger Super reforms.

The Australian Securities and Investments Commission (ASIC) has received new funding totalling $180.2 million over four years in the 2012-13 budget.

John D Rogers, CFA, president and CEO of CFA Institute, has issued a call to action to the global investment community at the organization’s 65th Annual Conference in Chicago, calling on the profession to take personal responsibility to restore investor trust and reconnect with the public interest. Rogers outlined three steps the profession must take to achieve this goal, including exercising a bolder voice for professional ethics; focusing on financial activities that enable economic and social progress; and engaging with a wider community to share, teach and engage. (Read a copy of Rogers’ speech.)

Global professional services specialist KPMG has published a review of the country’s major banks, find they continue to perform well on the global stage, despite some negative effects in the global funding markets and ongoing structural change.

A report into Compensation arrangement for consumers of financial services, prepared by Mr Richard St. John, has been released. The report highlights the need for  appropriate avenues for compensation for retail consumers of financial services.