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FSC welcomes ASIC's new fee and cost guidance for super funds

THE Financial Services Council (FSC) has today welcomed several initiatives included in ASIC’s revised fees and costs disclosure requirements for PDSs and periodic statements, including the updated Regulatory Guide 97.

FSC CEO Sally Loane said, "We are pleased to see that the updated rules increase comparability and clarity of disclosure, including changes as to how some of the fees and costs categories are grouped together.

“Consistency in reporting of superannuation fees is crucial to ensure consumers can meaningfully compare products and make informed choices about their retirement savings,” Ms Loane said.

“Overall the changes are a positive step forward for Australians, who will be able to more clearly understand what they are being charged for when it comes to financial products. We are however disappointed that our request for a longer timeframe for compliance has not been granted in today’s update.

“The FSC’s submission earlier this year pressed strongly for a longer timeframe for compliance, particularly in the case of PDSs. We submitted that this was necessary to accommodate the extensive system, data gathering and disclosure changes – the shorter timeframe will create added pressure and risk for businesses implementing the new rules,” Ms Loane said.

“The FSC looks forward to engaging with ASIC over the coming months to ensure industry has a disclosure framework that provides transparent, comparable information and promotes consumer trust and confidence in the financial services system.”

The new rules and guidance follow ASIC’s Consultation Paper 308 Review of RG 97 Disclosing fees and costs in PDSs and periodic statements released earlier this year, and Report 581 Review of ASIC Regulatory Guide 97: Disclosing fees and costs in PDSs and periodic statements.

www.fsc.org.au

 

About the Financial Services Council

The Financial Services Council (FSC) has more than 100 members representing Australia's retail and wholesale funds management businesses, superannuation funds, life insurers, financial advisory networks and licensed trustee companies. The industry is responsible for investing $3 trillion on behalf of more than 15.6 million Australians. The FSC promotes best practice for the financial services industry by setting mandatory Standards for its members and providing Guidance Notes to assist in operational efficiency. The FSC’s mission is to protect and enhance confidence in a strong, sustainable financial services sector that serves Australians with integrity.

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IPA hones in on business mental health issues

INSTITUTE of Public Accountants (IPA) chief executive officer, Andrew Conway, has addressed hundreds on delegates at IPA’s national congress being held in Adelaide this week, highlighting the extensive work the Institute is doing in the mental health arena.

“Having carried out an Australia wide road show, gathering feedback from small businesses and small accounting practices, the message we received loud and clear was that the mental health of small business has become a paramount issue,” Prof Conway said.

“We heard of many stories of true concern; too many to ignore. Our members echoed these sentiments and as trusted advisers; they are in an inevitable position of trying to assist clients who are facing such issues as depression and anxiety.

“The IPA has advocated for a Federal response.  A roundtable meeting with the Prime Minister in late 2018 has led to a series of government run working groups to address the issue of the mental health of small business," he said.

“This work is ongoing, and IPA continues to be represented on such forums to generate recommendations for government.

“In addition, we have provided mental health first aid training to senior staff and members.  We are looking to extend our research to ensure we have an evidence-based approach to policy development in this area,” Prof Conway said.

 

About the Institute of Public Accountants

The IPA, formed in 1923, is one of Australia’s three legally recognised professional accounting bodies.  In late 2014, the IPA acquired the Institute of Financial Accountants in the UK and formed the IPA Group, with more than 37,000 members and students in over 80 countries.  The IPA Group is the largest SME focused accountancy organisation in the world. The IPA is a member of the International Federation of Accountants, the Accounting Professional and Ethical Standards Board and the Confederation of Asian and Pacific Accountants.   

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Indonesia-Australia Comprehensive Economic Partnership Agreement legislation passes the Senate

ON BEHALF of CPA Australia I acknowledge the successful passage of Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA)," said CPA Australia chairman and president, Peter Wilson.

"The IA-CEPA will further strengthen the economic and commercial ties between these two markets," Mr Wilson said. "Indonesia is one of the fastest growing economies in the region, and one of Australia’s nearest neighbours. This geographical proximity, plus the countries’ already strong ties means that Australian businesses and jobs are well positioned to benefit from this new agreement.

"Under the agreement, non-tariff barriers to trade will be reduced, paperwork simplified and the IA-CEPA will allow 99 percent of Australia's goods exports to enter Indonesia either duty free or with significantly improved preferential arrangements. All Indonesia's goods exports will enter Australia duty free.

"Encouraging international trade by removing impediments is very positive for both Australian businesses and Australian jobs. The agreement also ensures that Indonesia will not apply tariffs to Australian goods exports in the future," he said.

"We also acknowledge the bipartisan support of the Australian Labor Party who supported the passage of this important legislation."

Indonesia is an important trading partner with Australia. According to the Department of Foreign Affairs and Trade (DFAT), in 2018, total two-way trade in goods and services with Indonesia was worth A$17.6 billion, making Indonesia Australia's 4th largest trading partner.

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CPA Australia is one of the world's largest accounting bodies, with more than 164,000 members working in 150 countries and regions and supported by 19 offices globally. Our core services to members include education, training, technical support and advocacy. Employees and members work together with local and international bodies to represent the views and concerns of the profession to governments, regulators, industries, academia and the community. Visit our website: www.cpaaustralia.com.au

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Government and crossbench can't abandon 380,000 small construction businesses

THE GOVERNMENT and crossbench must not abandon the almost 400,000 small businesses and sub-contractors in the building and construction industry. 

That is the warning from Master Builders Australia’s CEO Denita Wawn, who said that it is now "more crucial than ever that it be made clear that the small businesses and subbies aren't going to be left to the mercy of bullying and thuggery displayed by some organisations and their officials". 

"There are more small businesses in the building and construction industry than any other sector of the economy, and 99 percent of illegal bullying and thuggery committed by some unions and their officials happens to our members,” MsWawn said. 

"We've been inundated with calls this morning, particularly from small subbies, to express their fears in light of the Senate's decision. 

"They are telling us what everyone knows - building unions will spin the outcome as being given a green light to continue their tactics of bullying and intimidation,” Ms Wawn said. 

"They are worried that a bad situation will now get far worse and are asking - who will stick up for us? Master Builders thanks to the Senators who voted to support the Bill, particularly those from South Australia.

"We've made it very clear to all our South Australian members that Centre Alliance and Senator Bernardi did the right thing and backed them in the vote,” Ms Wawn said.

"We applaud Senators Patrick and Griff from Centre Alliance, and Independent Senator Cory Bernardi, for taking such a considered and constructive approach to the Ensuring Integrity Bill.

"These Senators, particularly Senator Rex Patrick, have listened and recognised there is a problem. We congratulate them for doing the right thing by South Australian small businesses by saying ‘yes’ to small business and ‘no’ to bullying,” she said. 

"It is crucial for Government to now let the industry know that they won't be abandoned. We want the Government to bring this Bill back to the Parliament as a matter of urgency, to show they remain committed to finding a solution to a problem that is obvious to everyone. 

"Almost everyone who spoke during the Ensuring Integrity Bill debate acknowledged there is a problem and we want them to work towards finding a solution," Ms Wawn said.

www.masterbuilders.com.au

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PFAS remediation work in the spotlight

ON MONDAY December 2, the PFAS Sub-committee of the Joint Standing Committee on Foreign Affairs, Defence and Trade (JSCFADT) will hear from the Department of Defence about the effectiveness of its National PFAS Investigation and Management Program.

The chair of the PFAS Sub-committee the John McVeigh MP said the Department of Defence was at the forefront of remediation work on per-and poly-fluoroalkyl substance (PFAS) contamination in Australia.

The Department of Defence is now conducting PFAS investigation and remediation work at 28 Defence sites, with innovative water and soil treatments being delivered with the aid of expert environmental service providers.

“The question for the Sub-committee," Dr McVeigh said, “is whether these works are delivering the desired results, and being seen to do so?”

Evidence from the ANU PFAS Health study last week confirmed what Sub-committee members have seen in affected communities themselves - the levels of anxiety and uncertainty are high. This is despite the evidence that concentrations of PFAS in the environment, and hence people’s exposure, is coming down.

“With environmental regulations becoming more robust and locally based medical evidence being consolidated, reducing exposure to PFAS and its presence in water and soil is environmental best practice”, Dr McVeigh said.

“The challenge is to ensure that the Department of Defence is accountable to the public for the work being done, and that affected communities, in particular, are informed of progress, and problems, at each step of the way.”

The PFAS Sub-committee will report on the evidence taken by the end of the year and continue its ongoing scrutiny of government activity at hearings from the first sitting weeks of 2020.

Public hearing details:

Date: Monday 2 December 2019
Time: ~4:10pm to 5pm
Location: Committee Room IR4, Parliament House, Canberra.

The hearing will be audio streamed live at www.aph.gov.au/live.

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