THREE of Australia’s key economic regulators – the Australian Prudential Regulatory Authority (APRA), the Australian Securities and Investments Commission (ASIC), and the Australian Competition and Consumer Commission (ACCC) – will appear before the House of Representatives Standing Committee on Economics at a public hearing on Friday, September 10, 2021.

In the first part of the hearing, the committee will take evidence from all three regulators in support of its inquiry into the implications of capital concentration and common ownership in Australia. This will be one of the first public hearings in support of this new inquiry.

Common ownership refers to when institutional investors simultaneously own shares in competing firms, which can pose a risk to competition. The committee will investigate the extent of common ownership of publicly listed companies and the impact on investment decisions, competition, consumer harm and market behaviour.

Committee Chair Mr Tim Wilson MP said, "Common ownership has implications for investors and competition. We need to be sure we are empowering citizens as investors and customers, and not organised capital. The committee is looking forward to hearing the views of the ACCC, ASIC and APRA on this important topic."

The committee will use the second part of the hearing to continue its public review of the 2020 Annual Reports of both APRA and ASIC, following a similar hearing on March 29, 2021.

"When ASIC and APRA appeared before the committee earlier this year, we were keen to understand how they had responded to the COVID-19 pandemic, and to the associated economic stimulus measures taken by government," Mr Wilson said.

"The committee is looking forward to following-up on some of these questions. It is important that the Australian people have insight into the steps that our regulators are taking to promote resilience within the Australian economy during this time of uncertainty."

The full terms of reference for the inquiry into common ownership and capital concentration are available on the committee’s website.

Public hearing details

Date: Friday, 10 September 2021
Time: 9am to 4.30pm
Witnesses: ASIC, APRA, ACCC

Due to health and safety concerns relating to the COVID-19 pandemic, this hearing is not currently scheduled to be open for public attendance. Interested members of the public will be able to view proceedings via the live webcast at aph.gov.au/live.

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A MILESTONE has been reached in the Cbus Super and Media Super merger, with the two funds signing a Successor Fund Transfer (SFT) deed.

The merged fund, set to launch in the second half of FY2022, will manage over $70 billion in funds for around 850,000 members.

Under the SFT, Cbus will retain the Media Super brand to communicate with members in the print, media, entertainment and arts, and broader creative industries, whilst investment, management and back office functions will be shared.

Media Super chair Susan Heaney said, “In an environment where the complexities of regulatory change, investment opportunities and member demand for digital and advisory services are growing, it is becoming increasingly difficult for smaller superannuation funds to remain cost-competitive and provide members with more choice and opportunity to grow their retirement savings.

“By belonging to a much larger fund, Media Super members will gain investment opportunities at a lower cost and benefit from a portfolio of products and services that will help improve their retirement outcomes.

“Our members have much in common with Cbus members in terms of the nature of their work. Many are self-employed, others work on fixed-term contracts or in casual employment. Like the construction sector, their workplaces are often changing and can be disrupted.

“By keeping the Media Super brand, our members can be confident that they will still have a voice within the larger fund, and that our focus and support for those employed in the print, media, entertainment and arts sectors will be maintained.”

Cbus chair Steve Bracks said Cbus has an impressive track record, returning for members 9.25 percent on average each year for the last 37 years.

“Since 2017 Cbus has reduced our investment fees by $400 million, demonstrating the value of scale to members’ bottom line," Mr Bracks said.

“Together Cbus and Media Super can deliver more for members, delivering the tailored, industry-specific products members need with greater scale and efficiencies.”

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THE Tax Practitioners Board (TPB) and the Professional Standards Councils (the ‘Councils’) have signed a landmark Memorandum of Understanding (MoU).

The MoU will help guide the collaboration, cooperation, and mutual assistance between both organisations with the objective of promoting the integrity of the tax profession.

Speaking about the MoU, TPB chair, Mr Ian Klug AM, said the MoU was significant as it would help signal valuable ways that the TPB and the Councils would work together in the future.

"We welcome the creation of the MoU as it establishes a framework for greater collaboration with the Councils. Through it we hope to achieve shared goals, minimise duplication and provide increased consumer protection for the legislative schemes that we administer," Mr Klug said.

Chair of the Councils, John Vines OAM, said the creation of the MoU supported the efforts of the Councils and TPB to work together to ensure services are delivered to consumers by competent and ethical tax professionals. 

"This first MoU with the TPB fulfils the Councils’ strategic commitment to streamline regulatory efforts with peer regulators for better consumer protection outcomes. The MoU reflects a partnership approach to creating opportunities to share insights and to work with professional associations in a flexible and streamlined way that enhances community confidence," Mr Vines said. 

Mr Klug added that the MoU recognised the important role the Councils had played in their shared commitment to the recently formed Tax Practitioner Governance and Standards Forum (TPGSF).

The formation of the TPGSF was a key recommendation following the independent review of the TPB and the Tax Agent Services Act 2009. The TPGSF includes representatives from professional associations, the TPB, the Australian Taxation Office and the Councils. 

Mr Vines welcomed the opportunity for the Councils to contribute to the work of the Forum. 

About the Tax Practitioners Board

The Tax Practitioners Board regulates tax practitioners in order to protect consumers. The TPB aims to assure the community that tax practitioners meet appropriate standards of professional and ethical conduct. Twitter @TPB_gov_au, Facebook and LinkedIn.

About the Professional Standards Councils

The Professional Standards Councils and its agency, the Professional Standards Authority, work to improve professional standards and protect consumers of professional services across Australia. The Professional Standards Councils are independent statutory bodies established in each state and territory. They have specific responsibilities under professional standards legislation for assessing and approving applications for, and supervising the application of, Professional Standards Schemes.  LinkedIn and Twitter.

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THE Joint Standing Committee on Treaties has today tabled a report strongly recommending the Federal Government ratify the Minamata Convention on Mercury.

Recognising the global public health dangers posed by mercury, and the fact that it is a toxic pollutant with the capacity for long-range atmospheric transport, the Convention implements a global framework for controlling mercury.

The Convention contains measures to limit emissions and reduce the use of mercury, control the supply and trade of mercury, and ensure mercury waste is disposed of and managed safely. The Convention entered into force in 2017 and has been ratified by 132 countries to date.

Committee Chair Dave Sharma MP said, "The Minamata Convention is a global response to a chemical of global concern. Mercury is a toxic element that cannot be destroyed. There is no safe level of exposure to mercury."

The Committee recommended the Federal Government reassess the need to seek an exemption to allow for the continued importation of High Pressure Mercury Vapour (HPMV) lamps into Australia.

"Industry is already transitioning away rapidly from HPMV lamps, and to seek such an exemption would place Australia in poor international company," Mr Sharma said.

The Committee also recommended ratification of the OCCAR Managed Programmes Participation Agreement. OCCAR facilitates cooperation in defence materiel acquisition by coordinating, controlling and implementing armament programs assigned to it by its member states, including the United Kingdom, France and Germany. Ratification would benefit Australia through access to a global procurement network, economies of scale, shared expertise and risk reduction.

The report can be found on the Committee website, along with further information on the inquiry.

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