Fund Regulatory Update
/Sex abusers no longer able to hide assets in super to avoid paying compensation to victims
The government has released a discussion paper that outlines two new proposals to close a loophole that allows child sex abusers to hide assets within superannuation to avoid paying court-awarded compensation.
Certain superannuation contributions made by an offender in the lead-up to criminal proceedings will be available to the victim for the purposes of paying compensation. Australian Tax Office data would be made available regarding offender superannuation accounts, providing transparency to victims.
APRA imposes licence conditions on Diversa Trustees, ASIC steps in over greenwashing
The Australian Prudential Regulation Authority (APRA) has imposed additional licence conditions on Diversa Trustees. The new licence conditions look to address concerns regarding Diversa’s resources to manage risks and meet its regulatory obligations, the complex structure of the company, and its ability to provide quality member outcomes.
ASIC announced fines for Diversa Trustees of $13,320 for its Cruelty Free Super product, a sub-fund of the Tidswell Master Superannuation Plan. ASICs flagged concerns regarding statements made on the Cruelty Free Super website which may have been false or misleading by overstating exclusions.
Interim stop order on Pivotal Diversified Fund
The Australian Securities and Investments Commission (ASIC) has placed an interim stop order on Vasco Responsible Entity Services Limited from offering or distributing the Pivotal Diversified Fund to retail investors due to a deficient target market determination (TMD).
ASIC’s concerns relate to the alleged improper consideration of features and risks in determining the target market for the fund.
FSC releases standard for claims handling in superannuation
The Financial Services Council (FSC) has published a new enforceable standard for life insurance claims within superannuation funds. The new standard replaces existing voluntary guidance and applies to all FSC superannuation members who hold a public or extended public offer licence to operate a responsible superannuation entity (RSE).
Compliance is expected from 1 July 2023 with the new Life Insurance Code of Practice guidelines.
