THE House of Representatives Standing Committee on Economics will scrutinise the Australian Securities and Investments Commission (ASIC) as part of its review of the performance of Australia’s corporate, market and financial system regulator.

Committee chair, Sarah Henderson MP, said "given there are legitimate community concerns about misconduct in the financial sector, the hearing provides a timely opportunity for the Committee to scrutinise ASIC on its performance and operation".

Ms Henderson commented, "The Government has recently announced a range of measures to strengthen ASIC, including increased criminal and civil penalties for corporate misconduct, and new powers to strip wrongdoers of profits.

"The Government is also taking action to protect consumers, by placing new design and distribution obligations on financial service providers to ensure their products are appropriately marketed and sold," Ms Henderson said.

ASIC is an independent Commonwealth statutory authority whose role is to administer the Australian Securities and Investments Commission Act 2001 (ASIC Act), the Corporations Act 2001 (Corporations Act) and a range of additional legislation.

ASIC’s aims include promoting investor and financial consumer trust and confidence, ensuring fair, orderly and transparent markets, and providing efficient and accessible registration for businesses and companies.

Ms Henderson said,"As this will be the first time the new chairman of ASIC, James Shipton, has appeared before the committee, it will be a chance to question the chair on his priorities."

Public Hearing Details:

Time:               8.30am to 11am

Date:               Friday 22 June 2018

Venue:             Committee Room 2R1, Parliament House, Canberra

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

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LIGHTING Council Australia relaunched Exitcycle, an industry-led battery recycling initiative, at Parliament House in Brisbane today.

The product stewardship arrangement was first trialed in 2015 and aimed to improve the recycling rates of emergency and exit lights. The program is supported by the Queensland Government, which recently confirmed an extension to the original program.

“With some 30 million emergency and exit lights across the country, it is critical that industry works with government and the community to improve environmental outcomes”, said Lighting Council Australia national environment manager, Roman Gowor.

“The majority of the green-emergency lights we see across all buildings are powered by a combination of older battery technologies, which often use cadmium, nickel metal hydride or sealed lead acid. In the coming years, newer generation batteries will use more sustainable components, however multiple sectors — government, industry and end users—must work together to find the best way of increasing recycling rates.

“We are very pleased with the leadership that the Queensland Government has shown on this issue.”

Today’s event included representatives from signatories to the Exitcycle scheme, recyclers, government officials and the lighting industry.

“The Exitcycle approach is successful because it is very well suited at addressing the specific waste issue," Mr Gowor said.

“Unlike a great proportion of batteries used across the economy, emergency and exit lights are not typically used in households and, by law, can only be serviced by electrical contractors.  The Exitcycle program is more targeted than other programs and focuses on electricians and facility and building managers.”

www.lightingcouncil.com.au

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THE ASSERTION that moving self-managed superannuation funds’ (SMSF) annual audits to a three-year cycle will reduce compliance costs for trustees may be flawed; or it could be a cost deferral at best, according to the Institute of Public Accountants (IPA).

“The Government’s proposal to change the annual audit requirement to a three-yearly cycle for SMSFs with a history of good record-keeping and compliance may be very well intended but could well be misdirected,” said IPA chief executive officer, Andrew Conway.

“There are other ways to reduce the red tape involved in managing SMSFs.

“A well-functioning SMSF sector is a by-product of good regulation. The SMSF auditor plays a vital role in providing the regulator with assurances that SMSF trustees are playing by the rules.

“According to the latest ATO statistics, the percentage of the SMSF population with auditor contravention reports (ACRs) is approximately two percent of all SMSFs each year.

“Having one audit every three years that covers the three year period may seem more efficient but may not translate to cost savings.  The question needs to be asked if the potential cost savings, if any, are worth the risk of SMSF trustees becoming non-compliant.

“Does the Government want to put at risk the current record of good compliance?

“Not working with trustees in the unsupervised (unaudited) years may result in an increase in contraventions if this measure proceeds. Not addressing contraventions on a timely basis can result in the costs growing exponentially; as well as presenting a systemic risk.

“The annual audit cost may be begrudgingly paid by trustees but most trustees would see this as a form of insurance as the penalties imposed by the ATO for contraventions can be significant.

“Without the annual and timely audit oversight, we are concerned that the low rate of contraventions may start to reverse, for the sake of a potential small reduction in costs over time. A loss of integrity in the SMSF sector is simply not worth the risk.

“We urge the Government and regulators to look at alternative ways to reduce the compliance burden and cost associated with SMSFs,” said Mr Conway.

publicaccountants.org.au

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AN OVERWHELMING 61 percent of Australians support the Federal Government regulating to make e-cigarettes, personal vaporisers and other less harmful alternatives to smoking available alongside cigarettes at retail so smokers have access to these products, according to a new poll conducted on behalf of the Australian Retailers Association (ARA) by Crosby Textor Group.

The poll found two-thirds of smokers support the legalisation of e-cigarettes and personal vaporisers and over two-thirds of all voters agree that the Australian Government should regulate, and make available, less harmful alternatives to cigarettes ‘as a way to completely phase out cigarette smoking in this country’.

Russell Zimmerman, executive director of the ARA, said regulating access to less harmful alternatives is a no-brainer for Australians, and the Government should get on with the job of making them available.

“More and more Australians are buying personal vaporisers with nicotine online from overseas, simply because they can’t buy them locally and this is affecting local retailers who are subject to an effective ban,” Mr Zimmerman said.

“The government needs to act so that responsible local retailers can compete on a level playing field and sell less harmful products for Australians trying to change their habits. Failure to regulate only increases the risks and there are currently no Commonwealth laws prohibiting advertising to children, or Australian standards for ingredients or vaporiser design to keep people safe.”

The ARA’s new poll has identified that 61 percent of voters place importance on the strain of smoking-related diseases on the health system, and 93 percent of voters are also interested in the state of the public health system.

“Allowing retailers the opportunity to sell these less harmful alternatives is a win-win, as it provides monetary benefits for local retailers and public health benefits for the wider community,” Mr Zimmerman said.

Countries all around the world including Canada, UK, New Zealand, Europe and the US, have legalised and regulated these products, which are not only beneficial for current smokers, but allow retailers to fairly compete in the market.

“It is clear that smokers are not prepared to wait around for the Government to act and improve their health, as hundreds of thousands of Australians are already using these products,” Mr Zimmerman said.

“Australians have been purchasing e-liquids containing nicotine through online marketplaces for years, and unfortunately consumers cannot guarantee the quality of the purchase and are unaware of the risks.”

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is Australia’s largest retail association, representing the country’s $310 billion sector, which employs more than 1.2 million people. As Australia’s leading retail peak industry body, the ARA is a strong pro-active advocate for Australian retail and works to ensure retail success by informing, protecting, advocating, educating and saving money for its 7,500 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.

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