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Business News Releases

APRA to appear before House Economics Committee

THE Australian Prudential Regulation Authority (APRA) will appear before the House Economics Committee at a public hearing on Monday, December 2, 2019, as part of its review of the 2019 APRA Annual Report.

Chair, Tim Wilson MP, noted that "APRA appeared at a public hearing in August this year; however, the committee determined that additional information and questioning was required to properly scrutinise APRA".

"The hearing will provide the committee with the opportunity to further question APRA on its performance and operation and, in particular, how it is implementing the recommendations of the Hayne Royal Commission and the APRA capability review."

Mr Wilson said, "A common theme across the Royal Commission and capability review reports was that APRA is a strong regulator in the area of traditional financial risk, but that more work needs to be done to ensure APRA is prepared to respond to future challenges, particularly in relation to non-financial risk.

"The committee will scrutinise APRA on how it promotes financial stability through the prudential regulation and supervision of Authorised Deposit taking Institutions, insurers and superannuation licensees, and other related issues."

Public hearing details

Date: Monday, 2 December 2019
Time: 8am to 11am
Venue: Committee Room 2R1, Parliament House, Canberra

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

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Trade Committee exports Parliament to Sydney

AN INQUIRY into supporting Australia’s export market is exporting the work of the Federal Parliament to Sydney, where it will hold a hearing on Friday.

Trade and Investment Growth Committee chair, George Christensen MP, said the Committee would hear from exporters in the advanced manufacturing, video games, sugar, wine, seafood, tourism, transport-related safety products and financial services sectors at the hearing.

‘From tourism to video games, Australia offers a staggering range of products and services to the world,’ Mr Christensen said.

‘We are looking forward to hearing from this huge range of industries and businesses about how the government can assist them to grow their export capabilities and attract investment.’

The inquiry, which focuses on attracting investment, identifying regulatory barriers and identifying best practice in the export market, was launched in August of this year. This will be the third public hearing to be held.

More information about the inquiry, including a full program for Friday’s public hearing, is available on the Committee’s webpage.

Public hearing details

Date: Friday, 29 November 2019
Time: 9am to 3.45pm
Location: Lodge Room 2, SMC Conference & Function Centre, 66 Goulburn St, Sydney

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

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Vision Super named cheapest super platform in Australia

VISION SUPER has been named the winner of the inaugural Money Magazine award for Cheapest Superannuation Platform.

Money Magazine described the fund as a “standout when it comes to price”. The average industry fund charges more than double Vision Personal’s total management fee of 0.49 percent.

Vision Super chief executive officer Stephen Rowe said the result was pleasing, but not surprising.

“Our focus at Vision Super is always on the best interests of our members – and that includes a focus on keeping our costs low so members get more in their accounts,” Mr Rowe said.

“We started the Vision Personal–Sustainable balanced option to give people who wanted to invest sustainably a better option, at a much lower cost than similar retail fund offerings. It’s low cost, and it’s low carbon.

“Australians are getting a lot more informed and savvy about where their super is invested – particularly since the Royal Commission.

“Gone are the days when funds could sell members high-cost products – the choice market is growing, and Vision Super is out there offering a product that’s been recognised as the lowest cost in the country," Mr Rowe said.

“We also have a focus on strong risk-adjusted returns, and the results are exceptional – as at October 31, Vision Personal–Sustainable balanced has top quartile returns of 12.66 percent over one year, and above median returns of 9.36 percent over three years.

“Membership of Vision Personal has been growing strongly as a result –157.5 percent membership growth and 48.9 percent asset growth over the three years to June 30.

“Our members have joined us because we offer outstanding value and a sustainable approach – and we’re delighted that Money Magazine has recognised Vision Super’s value through this Gold award.”

www.visionsuper.com.au

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FPA releases Evolution of Advice discussion paper

THE Financial Planning Association of Australia (FPA) has released a new discussion paper titled Evolution of Advice: The Financial Planning Profession from 2020 to 2025, and opened consultation on its proposed new pol icy platform.

The paper considers the major issues that will affect the profession over the next five years, including the affordability of advice, how financial planners interact with their clients, and the health of the profession.

FPA members will be asked to contribute their views over the next four weeks via the new FPA Community online forum, and their feedback will form the basis of the Association’s new policy initiatives for the next five years.

Dante De Gori CFP CEO of the FPA, said, “The FPA has a proud history of advocating for reforms that advance the financial planning profession, including education standards, ethics and professionalism.

“Back in 2014, the FPA released a landmark white paper on the future of the financial planning profession, providing a vision for elevating the profession and building consumer trust. In that paper, 10 key milestones were identified. The FPA’s advocacy since that time has resulted in nine of those 10 points being adopted – a proud achievement.

“Now we must look to the future and evolve our vision for the financial planning profession over the next five years. Feedback from members will underpin our policy and advocacy work so that we can promote new reforms that will benefit Australian consumers and financial planners alike.

“While the profession is going through a period of rapid change, Australians’ demand for high quality, independent and affordable financial advice remains undiminished. The FPA’s policy platform provides an opportunity for us to lead the conversation about the future of financial advice in this country and how we can better serve Australian consumers,” Mr De Gori said.

FPA members are encouraged to contribute their views by responding to a series of questions posed in FPA Community, which will be available in early December 2019.

The FPA is also presenting a webinar to its members on Tuesday December 3 at 1- 2pm AEST to walk through the details of the discussion paper including the current and emerging issues in financial planning and how these will be reflected in FPA’s new policy platform. The FPA expects to release its new policy platform in 2020.

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New Business Growth Fund aims to supercharge high-growth Australian SMEs

THE Australian Small Business and Family Enterprise Ombudsman (ASBFEO) Kate Carnell said she believes high growth small and medium-sized businesses will get the boost they need from the new $520 million Australian Business Growth Fund. It is backed by the big four banks and the Federal Government.

The fund will invest capital to buy between 10 and 40 percent equity in high growth SMEs with annual turnovers of between $2 million and $50 million. The model is to give scale-ups the funding they need while not havign the fund control the business.

Treasurer Josh Frydenberg has confirmed ANZ, CBA, NAB and Westpac will each commit $100 million to the fund, while HSBC will contribute $20 million. The Federal Government has pledged $100 million. 

“We welcome both the government investment in the fund, which has now been matched by the major banks," Ms Carnell said.

“The Australian Business Growth Fund was a recommendation in our Affordable Capital for SME Growth report, which identified the need to address a critical funding gap for long-term capital to enable high growth potential SMEs to flourish.

“This fund will benefit high growth SMEs with annual turnovers of between $2 million and $50 million," she said.

“Importantly the fund will be managed by private sector expertise and will invest between 10 percent and 40 percent in the chosen businesses, allowing the business owner to maintain their controlling interest, while giving them the funds they need to invest in growth.

“Similar models in the UK and Canada have proven successful, giving businesses the chance to thrive with much-needed access to affordable capital.

“We also support the government’s ongoing discussions with other financial institutions that are considering investing in the fund," Ms Carnell said.

“This initiative comes at a time when many respected economists, including those at the RBA, are publicly recognising one of the biggest barriers to growth for SMEs is access to affordable capital and this has been a critical factor holding the economy back. 

“The Australian Business Growth Fund will significantly encourage business growth and promote economic expansion.”

www.asbfeo.gov.au

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Slow infrastructure project roll-out drags construction to 3-year low - Master Builders

CONSTRUCTION activity continues to sink lower with few signs yet that new infrastructure projects are coming to life on the ground, according to Master Builders Australia’s chief economist Shane Garrett.

"The ABS figures out today indicate that the volume of construction work done during the September 2019 quarter slipped by 0.4 percent compared with the June 2019 quarter," Mr Garrett said. “During the most recent quarter, the volume of construction work actually done was the weakest since the end of 2016. Compared with this time last year, activity is down 7 percent.

“The results are particularly disappointing on the engineering and civil construction side of the market where the volume of work done has dropped by 9.6 percent over the past year. This is the side of the construction industry where the portfolio of new infrastructure projects should be showing up,” he said.

“We should be in the early stage of an infrastructure construction boom but we are not there yet. We need state and territory governments to work with their federal counterparts to get construction activity moving on the ground,” Mr Garrett said. 

“The new data mean that the risk of an economic growth vacuum is getting bigger. Everything must be done to lift short-term demand across the economy - and accelerating the roll out of government-led infrastructure projects is the best way.

“As the Governor of the Reserve Bank pointed out just last evening, monetary policy has its limitations with respect to promoting growth – including the reality that interest rate cuts can take many months to work their full benefits through the economy,” Mr Garrett said. 

“Increasing government spending and accelerating the pace of project work would offer a very immediate way out of the current growth impasse.”

During the September 2019 quarter, six of the eight states and territories experienced falls in construction activity. 

Expansions occurred in Tasmania (+10.0%) followed by Victoria (+3.5%). 

During the September 2019 quarter, the largest reduction in construction work hit South Australia (-5.0%) followed by Western Australia (-3.8%) and the Northern Territory (-3.1%).

The declines in construction activity were a bit more measured in Queensland (-2.1%), the ACT (-0.9%) and New South Wales (-0.5%).

www.masterbuilders.com.au

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BVN's culture and talent recognised by both the AIA Best in Practice Prize and the NSW Government

THE Australian Institute of Architects (AIA) awarded BVN the 2019 Best in Practice Prize NSW at their End of Year Prize night on Friday November 22. Also honoured was BVN principal and soon to be NSW Government Architect, Abbie Galvin with the 2019 Marion Mahoney Griffin Prize.

Each win demonstrates BVN and its people’s work extending beyond the walls of the practice and making a meaningful impact to the wider profession. By addressing industry issues such as gender equality and long hours, BVN were commended by the AIA jury for “their progressive approach to all aspects of workplace culture".

The Best in Practice Prize jury noted, “BVN recognises that a diverse and inclusive environment supports engagement, empowerment, and performance… There is a clear understanding that cultural change must be led from the top, and, where possible, policies and benefits are open to all staff, junior and senior. These include access to research time, flexible work, parental leave and profit sharing.”

This culture, one that nurtures collective creativity, inclusion and diversity, and importantly supporting women in senior architectural positions, has been the catalyst to produce exemplary architects of the likes of Abbie Galvin.

Cited by the jury as “An architect for her generation”, Ms Galvin has been a principal of BVN for 23 years and was recently appointed first female Government Architect of NSW since the position was created 200 years ago. The bestowment of the Marion Mahoney Griffin Prize celebrates Ms Galvin's accomplishments as a female architect and commitment to design that positively affects daily life.

“Without doubt Abbie will continue to champion a public domain and architecture that breathes an authenticity and integrity, positively affecting the daily life of our state,” said the jury.

BVN is rich in diverse ideas and perspectives. Diversity is “demonstrated through the active inclusion of older staff, Indigenous staff, and gender and cultural mixes through all levels of the studio. There are currently 30 nationalities within the practice, including leaders for whom English is a second language,” said the jury.

The jury noted, “BVN has a reputation for maintaining high ratios of female leadership. Four of the ten (equally paid) principals are women.” Of these four, one is co-CEO of the practice. 

As a direct response to the often demanding hours in the industry, BVN’s flexibility policies and tech solutions support remote working for employee wellbeing and work/life balance. These policies “reduce the guilt and stigma that is too often associated with flexible and part-time work by providing transparency and promoting a ‘redistributed hours’ approach,” said the jury.

About 20 percent of the Sydney studio is now on formal flex arrangements (with part of that figure represented by senior management), while the entire studio utilises informal flex on a daily basis.

Careers are nurtured through a vibrant program of events (in house salons with organisations such as Parlour, Tech and Design Talks, CPD talks), learning and development opportunities such as practice-wide workshops with leadership consultants and sponsorship of the architectural registration process.

A culture of research and experimentation is integrated into the practice through collaborations that explore alternative construction methods and experimentation with robotic fabrication.

The jury noted, “BVN actively explores future possibilities through research work that is integrated into the life and structures of the firm, conducted in partnership with universities and other institutions.”

Brian Clohessy, head of people and character at BVN said, “It is imperative that as an industry, it is understood that we can only deliver a quality built environment by ensuring that talented people are attracted to and stay in the industry. Providing an engaging and supportive workplace and culture is at the core of what we do.”

www.bvn.com.au

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FPA welcomes ASIC statement on FASEA Code of Ethics

THE Financial Planning Association of Australia (FPA) has welcomed today’s statement from the Australian Securities and Investments Commission (ASIC) that outlines its approach to advice licensee obligations for the financial adviser code of ethics.

Following significant advocacy efforts by the FPA and other professional associations to government, ASIC and FASEA (Financial Adviser Standards and Ethics Authority), ASIC has today provided additional guidance to licensees on their expectations of how licensees must support financial planners’ compliance with the FASEA Code of Ethics.

Importantly this includes facilitative compliance in relation to Standards 3 (conflicts) and 7 (client fee and benefit agreement) of the code, and makes clear that ASIC will not act as a code monitoring body by monitoring and enforcing compliance against the code.

Dante De Gori CFP CEO of the FPA, said, “The FPA’s advocacy work has raised concerns in relation Standards 3 and 7 and the short time frames with which to comply. We welcome today’s announcement from ASIC which acknowledges these Standards require significant change, and we support a facilitative compliance approach to this.

“We have expressed our concerns that these two Standards – which relate broadly to conflicts of interest (including fee and business models), remuneration models, referral arrangements, and gaining client consent from existing clients – need more clarification.

“ASIC has reiterated that all financial planners must still comply with the Code of Ethics from 1 January 2020. FPA members will continue to comply, as they have done with the FPA Code of Professional Practice for many years.

“It is important to note that facilitative compliance means ASIC will adopt a measured approach where inadvertent breaches arise or systems changes are underway, provided industry participants are making reasonable efforts to comply,” Mr De Gori said.

ASIC expects licensees to take reasonable steps to ensure their authorised planners comply with the code, including:

• Making sure that their advisers are aware that they need to comply with the code from 1 January 2020 onwards;

• Providing training and/or guidance to their advisers on the types of conduct that is consistent/inconsistent with the code;

• Facilitating individual advisers’ ability to raise concerns with the AFS licensee about how the licensee’s systems and controls may be hindering their ability to comply with the code, and acting on those concerns where appropriate;

• Considering whether advisers are complying with the code as part of their regular, ongoing monitoring of adviser conduct; and

• When it is in place, considering the decisions of the new disciplinary body and making any necessary changes to their systems and processes.

The FPA will continue to work with FASEA on amending the Code of Ethics and we will shortly develop further tools and resources to assist members in understanding and building compliance with the FASEA Code of Ethics.


About the FPA

The Financial Planning Association of Australia (FPA) represents the interests of the public and Australia’s professional community of financial planners. The association is unrivalled in its reach of the financial planning market, influence on government and regulators, standards set through a world-class Code of Professional Practice, unique position as the certification body in Australia for the global CFP designation, and reputation for quality professional development. With a growing membership of more than 14,000 members and affiliates, the FPA is home to Australia’s 5,700 CFP professionals. Building on a 20 plus year legacy, the FPA represents the changing face of the financial planning profession. www.fpa.com.au

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Committee to discuss regional migration with local government peak body

THE Joint Standing Committee on Migration is holding a public hearing for its inquiry into migration in regional Australia on November 27.

The committee will hear from the Australian Local Government Association, to discuss local governments’ perspectives on the factors that support successful regional migration and settlement.

“Following the committee’s first regional hearings in Murray Bridge and Mount Gambier, this presents and excellent opportunity to follow up on the issues raised with the national local government peak body,” said Julian Leeser MP, committee chair.

“The committee heard from migrants, volunteers, and local government on the specific issues in two communities in South Australia, and this hearing will provide a chance to examine regional migration and settlement from a national perspective.”

Public hearing details

Date: Wednesday November 27, 2019
Time: 10am
Location: Committee Room 1R4, Parliament House, Canberra

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

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New Master Builders national president calls for Senate to pass Ensuring Integrity laws

THE newly elected president of the nation’s peak building and construction industry advocacy organisation has urged the Senate to pass the Ensuring Integrity laws.

Simon Butt was elected national president of Master Builders Australia on the weekend at a meeting of Master Builders Associations of the building and construction industry in each state and territory. 

“There was an overwhelming consensus from Master Builders’ members around the country that the Ensuring Integrity laws are vital to protecting building businesses from union bullying and restoring the rule of law in our industry,” Mr Butt said. 

“Our industry for years been afflicted by the bullying, intimidation and thuggery of construction unions and their officials, some of whom repeatedly flout the law and bully small building businesses almost every day. We need the Ensuring Integrity laws to make sure there are real consequences that will act as a deterrent for these flagrant re offenders."

Mr Butt has more than 30 years experience in the building and construction industry. He is highly regarded in the ACT and 'Canberra region' where he is a former president of Master Builders ACT.

Mr Butt said is chief executive of Manteena, an award-winning Canberra based construction contractor with a track record of working on some of the most iconic projects in the nation's capital including Parliament House, and completing construction projects across Australia and internationally in 23 countries.

Mr Butt is also a fellow of the Australian Institute of Building and a member of the Australian Institute of Company Directors. In 2018 he was appointed an adjunct professor at the University of Canberra. 

www.masterbuilders.com.au

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2019 Australian Groundwater Conference in Brisbane

THE 2019 Australian Groundwater Conference is hosting more than 500 of Australasia’s groundwater experts, with international speakers, to reveal the latest research into groundwater science and management. 

the conference runs until November 27.

Topics presented today include:

-       Groundwater in a changing world

-       Groundwater resources vulnerability in a changing climate

-       Social engagement, attitudes & connection to groundwater

-       Use of big data & groundwater databases

-       Climate change/variability impacts and water security in tropical & arid climates

-       Water quality management

 

Details

Australasian Groundwater Conference 2019
24-27 November 2019
Brisbane Convention and Expo Centre
Brisbane Southbank, Queensland
https://www.groundwaterconference.com.au/

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