Labor & Greens to oppose FoFA amendment bill in Senate

Labor, Greens - Senate FoFA amendment bill - Corporations Amendment (Streamlining of Future of Financial Advice) Bill 2014Both Labor and Greens have issued dissenting reports against the Corporations Amendment (Streamlining of Future of Financial Advice) Bill 2014 and have recommended that the Senate not pass the bill.

The Senate had referred the bill to the Economics Committee for consideration. This committee has now given its report and, unsurprisingly, the majority vote of the committee has recommended the passage of the bill.

However Labor and the Greens have both issued, separate, dissenting reports.

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Policy needed to fight short-termism in superannuation: FPA

FPA - superannuation short-termism, Financial System InquiryThe FPA have recommended an independent institution be established to “assess whether the superannuation system is meeting its objectives.”

This recommendation is made in the FPA’s second submission to the Financial System Inquiry, and comes in response to concerns about the lack of direction in superannuation policy, including short-termism.

“The role of superannuation as a pillar in Australia’s retirement income strategy requires a regular, apolitical system of review in order to build public confidence in superannuation as an independent institution”

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Force SMSFs to get financial advice before borrowing: AFA

AFA: Financial System Inquiry (FSI) - require financial advice for SMSF borrowing (LRBA)The Association of Financial Advisers (AFA) have recommended that before SMSFs are allowed to borrow they be forced to seek financial advice.

“It is our suggestion that SMSF’s should need to obtain advice from an appropriately licensed financial adviser before they can enter into a limited recourse borrowing arrangement within the fund.”

This recommendation was made by the AFA in a second-round submission to the Financial System Inquiry (FSI).

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CPA calls for lifetime limit on superannuation lump sums

CPA limit superannuation lump sums, Financial System InquiryCPA Australia has called for a lifetime limit on superannuation lump sums, among other recommendations in a second-round submission to the Financial System Inquiry.

Limit superannuation lump sums

CPA said in the submission that people need to be encouraged to take income streams in retirement instead of lump sums. However CPA does not argue for prohibiting lump sums, pointing out that lump sums can be useful during retirement.

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Extend the PLS government reverse mortgages to all retirees

Australia Institute - retirement, reverse mortgage, Pension Loan Scheme (PLS)The Australia Institute has recommended the expansion of a government run reverse mortgage scheme to all retirees.

Pension Loan Scheme (PLS)

The Pension Loan Scheme (PLS) is a reverse mortgage offered by the government to people of age pension age. It allows those who meet the eligibility tests to borrow an amount equal to the full age pension, fortnightly. This loan is secured against their home.

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ASIC investigates effect of FOFA reforms on financial planners

ASIC effect FOFA on financial plannersASIC has conducted research to find what effect the FOFA reforms have had on financial planners.

“We found that for most licensees in the sample, the type of advice they provided, and their adviser numbers, had not changed as a result of FOFA,” said ASIC.

“In general, licensees reported that they understood what was required under the FOFA reforms, and most of the unpreparedness that reportedly existed before 1 July 2013 seemed to have been addressed. ”

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What is the purpose of super contributions data pass through?

ASFA Superannuation contributions pass through data - SuperStreamASFA, the Association of Superannuation Funds of Australia, has asked what is achieved by proposed regulations which will require super funds to pass through contributions data submitted by employers.

“The release of the draft regulations is the first public indication that the government is giving serious consideration to regulating such a requirement,” said ASFA.

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Only 29% approve of slower increase in super guarantee

An Essential Research poll has found that only 29% of those asked approve of slower increases in the superannuation guarantee rate.

Q. As part of the agreement to dump the mining tax, increases to compulsory superannuation have been deferred. Instead of increasing to 12% by 2019 they will remain at 9.5% until 2020. Do you approve or disapprove of this change to superannuation?

In response to this question 49% disapproved, 29% approved and 23% didn’t know.

Poll - Approve Disapprove change to slow superannuation guarantee rate

Read More »Only 29% approve of slower increase in super guarantee