THE Financial Services Council (FSC) has today released guidance to assist superannuation trustees and fund managers with divestment of Russian assets.

Despite superannuation funds only having a small exposure to Russian investments in the context of the $3.5 trillion superannuation system, the guidance reinforces the resolve of the financial services sector in ensuring that it meets the strong expectations of divestment outlined by the Australian Government.

FSC CEO Blake Briggs, said, “Divestment of Russian assets complements a range of Russian sanctions imposed by the government. The guidance supports superannuation trustees implement sanctions, cease new investments, and divest from Russian assets.

”By providing guidance, we aim to ensure that divestment occurs in a way that is consistent with the best financial interests of members and trustees’ legal and fiduciary obligations.”

The guidance, which is available on the FSC website sets out guiding principles for superannuation trustees; asset managers directly investing superannuation capital; and asset managers operating managed investment schemes with superannuation funds as investors.

The guidance covers:

• what constitutes a ‘Russian asset’;
• steps to be taken by superannuation trustees:
• issues in relation to ownership and control; and
• how the investment process will achieve divestment.

Mr Briggs said the FSC was confident this contribution will assist the broader industry in ensuring divestment occurs so that the superannuation sector can play its role in supporting international sanctions against Russia.

www.fsc.org.au

About the Financial Services Council

The FSC is a peak body which sets mandatory standards and develops policy for more than 100 member companies in one of Australia’s largest industry sectors, financial services. FSC Full Members represent Australia’s retail and wholesale funds management businesses, superannuation funds, life insurers and financial advice licensees. Supporting Members represent the professional services firms such as ICT, consulting, accounting, legal, recruitment, actuarial and research houses. The financial services industry is responsible for investing $3 trillion on behalf of more than 15.6 million Australians. The pool of funds under management is larger than Australia’s GDP and the capitalisation of the Australian Securities Exchange, and is the fourth largest pool of managed funds in the world.

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AUSTRALIA'S rapidly deteriorating security environment, which is characterised by unprecedented levels of foreign interference, cyber attacks and terrorism, has led to a record high workload for the Parliamentary Joint Committee on Intelligence and Security in the 46^th Parliament,according to the Chair of the Committee, Senator James Paterson

He said throughout the term, the PJCIS tabled 38 reports, including 23 tabled in the past 12 months alone. This is equal only to the workload of the 45^th Parliament, and far exceeds the 22 reports tabled in the 44^th Parliament and the ten reports in the 43^rd Parliament.

"Given this workload, the committee reiterates its recommendation in its Annual Report 2020-21 that the parts of the Intelligence Services Act 2001 which govern the work of the committee should be referred to the PJCIS at the commencement of the 47^th Parliament," Senator Patterson said.

Of note the committee recommended passage of:

• the Surveillance Legislation Amendment (Identify and Disrupt) Bill 2020 establishing three new warrants that give law enforcement agencies effective powers to enable swift and decisive action against the rising challenge of serious online crime;
• the Security Legislation Amendment (Critical Infrastructure Protection) Bill 2022 which establishes critical tools that will bring together government and industry to strengthen defences against significant threats from nation state adversaries and criminal actors;
• the Intelligence Oversight and Other Legislation Amendment (Integrity Measures) Bill 2020 ensuring that vital oversight and scrutiny keeps pace with new intelligence service capabilities to retain public confidence and ensure scarce resources are most effectively targeted to the most serious risks; and
• securing the listings of both Hamas and Hezbollah, in their entirety, as terrorist organisations.

In addition, the committee’s ground-breaking Inquiry into national security risks affecting the Australian higher education and research sector report made 27 bipartisan, unanimous recommendations to address the serious threats posed by foreign interference to our most critical research institutions.

The Inquiry into Extremist Movements and Radicalism in Australia remains ongoing, with the committee presenting an interim report recommending the PJCIS of the 47th Parliament conclude this important work.

An inquiry into the Telecommunications (Interception and Access) Amendment (Corrective Services Authorities) Bill 2022 – referred to the PJCIS on 21 February 2022 ­– will commence in the 47^th Parliament, if the government chooses to progress it, as will the Review of the Migration and Citizenship Legislation Amendment (Strengthening Information Provisions) Bill 2020.

The committee’s Review of Administration and Expenditure No. 20 (2020–21) – Australian Intelligence Agencies and Statutory Reviews of the Foreign Influence Transparency Scheme Act 2018 and of the Counter-Terrorism (Temporary Exclusion Orders) Act 2019 have commenced and will be finalised by the newly appointed Committee in the 47^th Parliament.

The committee has agreed to launch a review of the listing of the eight terrorist organisations, including Hamas and the National Socialist Order, for consideration by the PJCIS of the 47th Parliament.

Senator Paterson said the PJCIS would continue to experience a heavy workload as threats to the nation escalate.

"The most important task of the PJCIS is to help keep Australia safe and free," he said. "With foreign interference, cyber threats and terrorism at their highest levels yet, this task has never been more important.

"Our strategic environment is experiencing the most consequential realignment since the Second World War and we need to ensure security agencies have the right tools to protect our nation, and the right oversight mechanisms to ensure they retain public confidence for their important work.

"I thank all members of the committee for their tireless commitment to this task over the 46^th Parliament," Senator Paterson said.

Further information on the review as well as a copies of the reports mentioned above, can be obtained from the Committee’s website.

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Australian Resources and Energy Group,  AMMA has welcomed the appointment of Paul Schneider to the Fair Work Commission FWC), announced this morning by Attorney-General and Minister for Industrial Relations Michaelia Cash.

"Mr Schneider is well known and widely respected within Western Australia's industrial relations community," AMMA chief executive Steve Knott said.

"He brings significant experience from across the resources industry -- the powerhouse of Western Australia's economy -- and in particular the offshore and maritime support sectors where industrial relations can be both complex and challenging."
 
Mr Schneider's appointment as a Commissioner comes shortly after the news Deputy President Amanda Mansini will leave the FWC to assume her new appointment as Judge of the Federal Circuit and Family Court of Australia.
 
AMMA noted "with some concern" the FWC would remain as having 43 statutorily appointed members -- a historically low level of resourcing.
 
"The Morrison Government should very seriously consider additional appointments to the FWC prior to the 2022 Federal Election," Mr Knott said.
 
"When the ALP left office in September 2013 there were 46 tribunal members and Australia's labour force contained some 11.6 million people.
 
"Today the FWC has 43 members and the labour force contains approximately 13.4 million people.
 
"Not only is the FWC administering an employment system with 1.7 million additional users than when the ALP was last in office, but matters are increasing in both volume and complexity.
 
"This includes a raft of COVID-19 related workplace disputes that are swamping the commission currently and are only expected to grow.
 
"AMMA congratulates the Attorney-General for making a high quality FWC appointment today.
 
"It is AMMA's firm view that at least three more appointments would not only be well justified prior to the Election, but very necessary to maintain the functioning of the FWC."

www.amma.org.au

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THE Joint Standing Committee on Foreign Affairs, Defence and Trade presented its First periodic report on Human Rights in the Senate yesterday.

"This report outlines the range of issues the committee has considered during this term of parliament, and is intended as a precedent for future periodic reports to the parliament about human rights matters," Kevin Andrews MP, Chair of the Human Rights Sub-Committee, said.

"During this parliament, the committee has proposed Magnitsky-type legislation for Australia, made recommendations about the human rights of women and girls in the Pacific, and measures to help eliminate child and forced marriage. The Human Rights Sub-Committee has also held many private briefings and public round tables on specific issues," Mr Andrews said.

"However, it has not yet tabled a general report on human rights issues. Periodic reporting on human rights will help ensure that the voices of the most marginalised and persecuted populations can be heard, and that their concerns are placed on the public record," Mr Andrews said.

The report includes an overview of some of the issues raised with the committee in the private briefings it has received. The report also provides a summary of public hearing round tables held by the committee on foreign interference in Australia and on human rights abuses in Ethiopia.

This work was conducted as part of the Committee’s inquiry into the Department of Foreign Affairs and Trade Annual Report 2019–20. Details of the inquiry and a copy of the report are available from the Committee’s website.

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