Challenges and opportunities for pension systems, EY report

Ernst and Young, known as EY, has released a report arguing that aging populations is a “global challenge” which will require more reliance on self-funded retirement in the future. The report, Building a better retirement world: insights for better outcomes in the global pension and retirement market, highlights the “inevitable need for rapid reform and… Continue reading Challenges and opportunities for pension systems, EY report

Industry Super uses new research to argue against retail funds

Industry Super Australia says that new research “shows the age at which you retire age could boil down to the type of super fund you are a member of”. The report, by the McKell Institute, compares performance over the period 1987 to 2013 and finds that “an Australian could have to contribute to their super… Continue reading Industry Super uses new research to argue against retail funds

ASIC fines SMSF administrators for misleading statements

ASIC has imposed penalties on two SMSF administrators for ‘false or misleading’ statements, Esuperfund and Your Super Accountant. Esuperfund ASIC imposed a total of $ 30,600 in penalties on SMSF administrator Esuperfund for “false or misleading online advertising”. The three penalties, each for $10,200, relate to statements on the Esuperfund website during 2014. First Infringement Notice On… Continue reading ASIC fines SMSF administrators for misleading statements

Superannuation system “middle of the pack” internationally

The Australian superannuation system has been described as “middle of the pack” in terms of investment returns and fees in an international comparison conducted by Deloitte Access Economics. Titled Financial performance of Australia’s superannuation products, the report was recently released by the Financial Services Council. Superannuation Returns According to the report “Australia’s system appears to… Continue reading Superannuation system “middle of the pack” internationally

FSC calls for national retirement income policy

John Brogden, CEO of the Financial Services Council, has announced that the FSC is going to begin work on a national retirement income policy. “We must embrace the opportunity and lead the debate on taking superannuation from a world class accumulation scheme to the world’s best retirement system”, said Mr Brogden. He went on to say… Continue reading FSC calls for national retirement income policy

ATO to continue action against dividend washing

The ATO has announced that it is proceeding with action against dividend washing, which the ATO considers to be one of the emerging risks for SMSFs. Previously the ATO had revealed that in March 2014 3,000 letters had been sent to taxpayers who the ATO suspected of being involved in a dividend washing arrangement. Of these 3,000 original… Continue reading ATO to continue action against dividend washing

$510,000 now required for a ‘comfortable retirement’ says ASFA

New figures published by the Association of Superannuation Funds of Australia (ASFA) show the cost of retirement has risen, with $510,000 now required to fund a comfortable retirement. According to ASFA, in the forth quarter of 2013/14 the cost of a ‘comfortable retirement’ rose 0.5%, to $58,128 per year. To fund this would require a… Continue reading $510,000 now required for a ‘comfortable retirement’ says ASFA

Government sets out expectations for ATO, ASIC, APRA

The Government has issued a ‘statement of expectations’ to many of the regulatory bodies, including the ATO, ASIC and APRA. These statements outline “the Government’s expectations about the role and responsibilities” of the regulatory bodies. While acknowledging that the regulatory bodies need to act “independently and objectively”, the Government expects that they will “take into account… Continue reading Government sets out expectations for ATO, ASIC, APRA

ASIC alters stance on when an SMSF is a wholesale investor

ASIC has altered its stance on when it will consider an SMSF to be a wholesale investor. The issue of when a client is a retail or wholesale investor has been unclear for some years. Which is an important distinction given it determines the level of consumer protections, disclosure and access to some investments. The… Continue reading ASIC alters stance on when an SMSF is a wholesale investor

Consumers don’t know who owns their financial planner

Statistics published by Roy Morgan show that consumers perceive financial planners branded differently from their actual owners as far more independent than they rank bank-branded financial planners. All the big four bank’s financial planners rank low for perceived independence by consumers, as Roy Morgan says “the planners belonging to all the major banks and labelled as… Continue reading Consumers don’t know who owns their financial planner