Archived News for Finance Sector Professionals
Financial services legal expert Richard St John has released a report on issues surrounding compensation for investors in financial services products.
The report, Review of compensation arrangements for consumers of financial services, was commissioned in April 2010 by the then Minister for Financial Services, Chris Bowen, to review the costs, benefits and need for a statutory compensation scheme.
The review forms part of the broader Future of Financial Advice (FoFA) reforms. The discussion paper provides an overview of the financial services industry, the regulatory environment in which it operates and the current compensation arrangements required of licensees and how they work in practice.
It finds that of almost 5000 entities licensed to offer financial services, more than 4,500 are licensed to provide advice and of those, 3,300 are authorised to provide personal advice.
Future of Financial Advice reforms get mixed reception
The Federal Government has released an information pack outlining details of its Future of Financial Advice reforms, sparking widely differing responses from across the industry.
Companies turn to retail bond markets
Australian companies are increasingly turning to the retail bond market to directly obtain part of their financing requirments, according to industry newsletter, Dealogic.
Call for comment on financial advice compensation
The Federal Government has released a discussion paper as part of its review of the need for, benefits and costs of a compensation scheme for investors who lose their money through the misconduct of a financial service provider.
CFO's optimistic about the future
A study by Deloitte has found that the majority of Australian Chief Financial Officers are more optimistic about the prospects for their companies now than they were three months ago, and are more willing to take risks.
Exemption of taxes, fees and charges from the GST - Exposure Draft Regulations
The Assistant Treasurer, Bill Shorten, is proposing new regulations to specify which taxes, fees and charges will still be subject to the Goods and Services Tax (GST).
Call for tenders to establish Centre for International Finance and Regulation
Australian universities have been invited to tender for $12.1m funding from the Commonwealth to host the Centre for International Finance and Regulation.
Ernst & Young Capital Confidence Barometer points to recovery
Ernst & Young’s fourth Capital Confidence Barometer has found that while nearly a third of Australasian businesses are considering opportunities for mergers and acquisitions, they are less likely now to acquire than in the previous year.
Call for comment on tax advice privilege
A discussion paper, Privilege in relation to tax advice, has been released by The Treasury which explores the appropriateness of establishing a tax advice privilege.
Reform to taxation of trusts
The Assistant Treasurer, Bill Shorten, HAS released for public consultation exposure draft legislation that will enable farmers who have trusts to continue to use the primary production averaging and farm management deposits provisions in a loss year.
Government grants for Trio super victims
Over 5,000 victims of fraud from the collapse of Trio Capital Limited (Trio), will be compensated with a grant totalling around $55 million announced by the Assistant Treasurer and Minister for Financial Services and Superannuation, Bill Shorten.
ASIC to prepare new guidelines on prospectuses
ASIC is proposing an overhaul of prospectuses to make them easier for retail investors to use and to improve the quality of information on the proposed business model and the associated risks.
Treasurer boosts investment in residential mortgage-backed securities
The Treasurer, Wayne Swan, has directed the Australian Office of Financial Management (AOFM) to invest a further $4 billion in high-quality, AAA-rated Australian residential mortgage-backed securities (RMBS) to help smaller lenders continue to offer competitive loans to families and small businesses.
ASIC seeks input on financial advisors' training and assessment
The Australian Securities and Investment Commission (ASIC) has released a consultation paper to seek views on a new training and assessment framework for financial advisers.
Limited prospects for future bank funding sources
The Australian Centre for Financial Studies and KPMG have released a joint report on the future of bank funding in Australia, concluding that, due to slow-changing factors such as the balance of payments and superannuation arrangements, the mix of funding sources is unlikely to change substantially in future years.
Fraud levels remain high: KPMG
Consulting firm, KPMG, has released the results of its latest study of fraud, finding that over $115 million was lost to the Australian economy as a result to fraud over the last 6 months.
Year's grace for new MIT tax system
Managed Investment Trusts (MITs) have an extra year to prepare for the new MIT tax system after the Federal Government announced last week it will defer the start date of the new laws from 1 July 2011 to 1 July 2012.
FPA to become a professional standards association
Members of the Financial Planning Association (FPA) have overwhelmingly supported the introduction of a new three-year strategic plan which aims to introduce higher standards to the industry and give financial planning recognition as a profession.
New rules for tax advice for financial advisers
The Assistant Treasurer and Minister for Financial Services and Superannuation Bill Shorten has met with representatives from the financial planning, tax and accounting bodies, the Treasury, the Tax Practitioners Board (the Board) and the Australian Securities and Investments Commission (ASIC) and agreed to a set of principles that will be used to develop regulatory arrangements for financial planners who provide tax advice within the context of providing financial advice.
Better Practice Guide for fraud control released
The Australian National Audit Office (ANAO) has released a Better Practice Guide for fraud control in Australian government entities, designed to complement a recently updated version of the Commonwealth Fraud Control Guidelines (the Fraud Control Guidelines).
Inquiry into finance for the not-for-profit sector
Submissions to the Senate inquiry into the development of a capital market for social economy organisations have been called for following the release of its issues paper, ‘Financing the not-for-profit sector’.