Fund Regulatory Update

Labor government looking at super fund role in advice to members

Labor’s Minister Stephen Jones has said that the government is examining obstacles that deter or prevent superannuation funds from giving financial advice to their members. Michelle Levy recommended that funds be able to provide advice to members in her Quality of Advice Review.

ASIC acts against 11 SMSF auditors

The Australian Securities and Investments Commission (ASIC) has taken action against 11 self-managed superannuation fund (SMSF) auditors for breaching their obligations. The breaches include auditing and assurance standards, independence requirements, registration conditions and ASIC being dissatisfied with individual auditors.

Binance AFS cancelled

Oztures Trading Pty Ltd trading as Binance Australia Derivatives has had its Australian financial services (AFS) licence cancelled by ASIC after a request from Binance. ASIC has been investigating Binance.

Binance has been warned and action has been taken by several international regulatory authorities in the USA, UK, Japan, Italy, Singapore, the Netherlands, Canada and Thailand.

Starfish FS AFS licence cancelled

The AFS licence of Starfish Financial Services Pty Ltd has been cancelled by ASIC after the company failed to maintain required organisational competence to provide the financial services in its licence and failed to meet financial reporting obligations.

Consultation on super performance opens

Consultation on superannuation performance tests has opened, with the test to become more accurate with updated benchmarks and extended testing periods. The duration of testing period is proposed to be increased from eight years to 10 years. Several benchmarks are to be updated to ensure test accuracy. The new test will expand geographically for unlisted property benchmarks.

Unlisted infrastructure will be updated to a median version of the existing index for both Australian and international assets. Australian fixed-income will include an exposure to inflation-linked bonds and floating-rate credit.

Feedback closes on 2 May 2023.