News

SPAA endorses PJC proposals to lift financial advice standards

SPAA, Parliamentary Joint Committee (PJC) report on proposals to lift the professional, ethical and education standards in the financial services industryThe SMSF Professionals’ Association of Australia (SPAA) has endorsed the report by the Parliamentary Joint Committee (PJC) on proposals to lift the professional, ethical and education standards in the financial services industry.

Graeme Colley, SPAA’s Director of Technical and Professional Standards, said the association supports any positive moves that improve the professionalism and standards of financial advice, and the PJC report “is certainly a concrete step in that direction”.

“The report’s recommendations embody a common sense approach to lifting the standards of financial advice and protecting consumers.”

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Government may shorten time for super guarantee payments

Superannuation Guarantee

The Minister for Small Business, Bruce Billson, and the Assistant Treasurer, Josh Frydenberg, have announced the Government will consult on employers making Superannuation Guarantee contributions and PAYGW payments at the same time as salary and wages.

Currently superannuation guarantee only needs to be paid within 28 days of the end of the quarter. Pay As You Go Withholding (PAYGW) only needs to be paid quarterly or monthly for many employers.

The consultation will also examine “what support businesses may require to enable such a transformation in payments to government and superannuation funds.”

Read More »Government may shorten time for super guarantee payments

Super funds up 7.5% in 2014, says SuperRatings

SuperRatings, super funds return 7.5% in 2014Update: SuperRatings have released the final figures for 2014, see Balanced super fund investment option up 8.1% in 2014.

Superannuation funds achieved returns of 7.5% in the 2014 calendar year, an “impressive” result according to superannuation research company SuperRatings.

Just when markets looked like tanking and taking our super funds with them, Australian superannuation funds have defied logic and benefited from a Christmas share market rally to end the year with further gains in December.

Read More »Super funds up 7.5% in 2014, says SuperRatings

Abandon term ‘financial planner’ says PJC inquiry report

Parliamentary Joint Committee (PJC) on Corporations and Financial Services: inquiry into proposals to lift the professional, ethical and education standards in the financial services industry The Parliamentary Joint Committee (PJC) on Corporations and Financial Services has recommended protecting the terms ‘financial adviser’ while abandoning the term ‘financial planner’, not requiring the individual licensing of financial advisers and setting a bachelor degree as the minimum education level for advisers.

These recommendations, among others, are contained in the report of the PJC inquiry into proposals to lift the professional, ethical and education standards in the financial services industry.

Read More »Abandon term ‘financial planner’ says PJC inquiry report

Australians more satisfied with SMSFs than large super funds

Australians more engaged and satisfied with SMSFs than large super fundsResearch has found that Australians are “more likely to be engaged and satisfied” with SMSFs than other superannuation funds.

The 2014/15 Superannuation Benchmarking Study by Engaged Marketing measured the ‘Net Promoter Score’ of large super fund brands and SMSFs. It found large super funds scored an average of -29%. This means that these funds, on average, had 29% more “detractors than promoters.” This compares to -5% for SMSFs. The worst performing fund scored -53%.

Engaged Marketing Managing Director Christopher Roberts said these results are a “wake-up call to super funds about the growing appeal of SMSFs.”

Read More »Australians more satisfied with SMSFs than large super funds

Union royal commission likely to recommend SG changes

Union royal commission, superannuation guaranteeThe interim report of the Union Royal Commission has ‘foreshadowed’ that the final report is likely to include a recommendation that more employees be given choice of which fund receives their superannuation guarantee contributions.

The interim report of the the Royal Commission into Trade Union Governance and Corruption was tabled on Friday the 19th of December. Amoung other potential recommendations it says:

It is desirable to foreshadow a recommendation in the Final Report that sub-paragraphs (d) and (h) be deleted from s 32C(6) of the Superannuation Guarantee (Administration) Act 1992 (Cth).

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Josh Frydenberg replaces Sinodinos as Assistant Treasurer

Arthur Sinodinos, Josh Frydenberg, Assistant TreasurerJosh Frydenberg has been announced as the new Assistant Treasurer in a cabinet reshuffle, following the resignation of Senator Arthur Sinodinos.

Senator Sinodinos stood aside as Assistant Treasurer in March 2014 due to investigations by the Independent Commission Against Corruption (ICAC), “so that there was no unnecessary distraction to the important work of the government which I am proud to serve.”

The Finance Minister, Senator Mathias Cormann, has been Acting Assistant Treasurer.

Read More »Josh Frydenberg replaces Sinodinos as Assistant Treasurer

Monarch FX banned for advising clients to set up SMSFs

ASIC, Monarch FX, SMSFASIC, through the Federal Court in Victoria, has succeeded in banning a foreign exchange business and its former director from conducting a financial services business for four years.

The business, Monarch FX Group Pty Ltd, was found to have executed foreign exchange trades without instruction and recommend the setting up of SMSFs, without holding appropriate licences.

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SMSF trustee fined $32,500 for loans to relative

SMSF trustees fined, loans to relatives, members, Deputy Commissioner of Taxation v Lyons [2014] FCA 1353An SMSF trustee has been fined $32,500 for lending money to a related party, in a recent Federal Court case, Deputy Commissioner of Taxation v Lyons [2014] FCA 1353.

Between the 3rd of July 2008 and 25th of May 2009 the Lyons Family Superannuation Fund lent a total of $190,000 to the brother-in-law of a member of the fund. This represented almost all of the assets of the SMSF.

These transactions started soon after the fund was established on the 6th of June 2008. The ruling says that “as at 3 July 2008 the Fund had cash assets of $193,459.44.” Most of this came from rollovers from two APRA-regulated superannuation funds.

Read More »SMSF trustee fined $32,500 for loans to relative