Superannuation Policy News - 21 December 2022
Revised ASIC mergers letter
ASIC has revised the standard letter they developed to assist trustees considering a merger, the previous version was reported in AIST’s Policy News - 14 May 2021.
The updated letter makes several changes, with a focus on what trustees need to consider if they are making an application for relief.
A copy of the letter released on 19 December 2022 can be found here
A marked up version of the original letter of March 2021 showing the changes made in the 19 December letter can be found here.
ASIC releases a series of legislative instruments on derivative reporting
ASIC has released a series of instruments dealing with Derivative Transactions reporting. ASIC are implementing this in two stages the first stage making sure that the current Rules (2013) continue to the start of the new rules then, at Stage 2, repealing the first Rules (2022) and replacing it with the new - and revised - Rules effective 21 October 2024.
ASIC Corporations (Amendment) Instrument 2022/934
The purpose of this principal instrument is to make consequential amendments to the other ASIC-made rules to
- reflect the repeal and remaking of the Reporting Rules 2013 to become the Reporting Rules 2022 (see link ‘2022’ below), and
- from 21 October 2024, in the Clearing Rules only, the repeal and remaking of the Reporting Rules 2022 to become the Reporting Rules 2024 {see the ‘2024’ link below).
The intention of this amendment, the new Reporting Standards and previous consultations (CP 334 and CP 361) was to amend the Derivative Transactions Reporting Rules to:
- harmonise to international standards;
- remove outdated transitional provisions and consolidate the various exemptions that currently exist as separate instruments within the rules; and
- ensure they are fit-for-purpose as to the scope of reporting entities, derivative products and requirements of relevant entities to over-the-counter (OTC) derivative transactions
ASIC Derivative Transaction Rules (Reporting) 2022
This instrument repeals and remakes the ASIC Derivative Transaction Rules (Reporting) 2013 (the 2013 Rules) in the same form, to continue the requirements for the reporting of over-the-counter (OTC) derivatives transactions beyond the 1 October 2023 sunsetting of the 2013 Rules. It is important to note that these reporting requirements make no changes to the current Reporting Rules but merely ensure that the current (2013) Reporting Rules remain in force until the commencement of the revised 2024 Reporting Rules.
ASIC Derivative Transaction Rules (Reporting) 2024
This instrument repeals and remakes the ASIC Derivative Transaction Rules (Reporting) 2022 (the 2022 Rules), with a deferred commencement of 21 October 2024. These Reporting Rules specify that, from 21 October 2024, several changes are to be made to Derivatives Reporting. The changes are complex and as-described in the text of the Rules and the Explanatory Materials accompanying it.
Australian Law Reform Commission releases paper on unconscionable and misleading or deceptive conduct in financial services law
The Australian Law Reform Commission (‘ALRC’) has released a paper which discusses unconscionable and misleading or deceptive conduct. It is the ninth in a series of background papers to be released by the Commission as part of its Review of the Legislative Framework for Corporations and Financial Services Regulation (‘the Inquiry’).
The background papers are intended to provide a high-level overview of topics of relevance to the Inquiry. Further background papers will be released throughout the duration of the Inquiry, addressing key principles and areas of research that underpin the development of recommendations.
ALRC: All roads lead to Rome: unconscionable and misleading or deceptive conduct in financial services law (Background Paper FSL9)
Part I provides background on the rationale for regulation in this area, the need for law reform, what the ALRC has said to date on these issues, and what this Background Paper aims to achieve in greater detail.
Part II outlines the existing law concerning unconscionable conduct, both at general law and in Commonwealth statutes that govern financial services and corporations — principally, in the Australian Securities and Investments Commission Act 2001 (Cth) (‘ASIC Act’) and Corporations Act 2001 (Cth).
Part III outlines the existing law concerning misleading or deceptive conduct in the ASIC Act and Corporations Act.
This Background Paper builds on work outlined by the ALRC in its Interim Report A. The Review will recommend changes to “….facilitate a more adaptive, efficient, and navigable framework of legislation”. It is intended that there will be:
- A third interim report focusing on potential reframing or restructuring of Chapter 7 of the Corporations Act; due by 25 August 2023;
- A consolidated final report; due by 30 November 2023.
The ALRC’s work will complement the ongoing work of the Department of Treasury in seeking to simplify Corporations and Financial Services Regulation. Feedback on the background papers can be sent by email to financial.services@alrc.gov.au.
Summer listening
The issue of how to assist members who are experiencing cognitive decline has been increasingly on the radar for super funds. AIST recently hosted a webinar on this topic that has now been converted to a podcast. Hear from two experts on the subject - Dr Diane Hosking, Senior Research Officer, National Seniors Australia and Ian Yates AM, Chief Executive, COTA.