SUPERANNUATION
Identity theft alert
The Australian Taxation Office (ATO) has advised the Australian Prudential Regulation Authority (APRA) that in a number of cases fraudulent ATO
correspondence is being used as evidentiary documentation to support rollover applications submitted to APRA regulated funds.
APRA has sent a letter to all the trustees of APRA regulated superannuation funds to inform them on the matter.
Accordingly, APRA has provided the following information:
• the falsified documentation is the Australian Business Register (ABR) letter issued to self managed superannuation fund upon registration;
• the known falsified ABR documentation typically provides details of an operating SMSF which is not associated with the requesting member;
• the SMSFs which are targeted generally tend to have a similar name to that of the requesting member;
• this is misusing the identity of an unrelated complying SMSF;
• the targeted SMSF is listed on the Super Fund Look Up (SFLU), and therefore appears ‘complying’ generally allowing rollover request applications to be processed;
• when these rollover requests are approved by an APRA regulated fund, the rollover cheque is forwarded to a postal address nominated on the rollover request which is different to the address listed for the SMSF on SFLU; • the addresses nominated on these fraudulent rollover requests are the postal
box addresses leased by the perpetrator(s);
• it is believed that these rollover amounts are never returned to the members. In this issue:
SUPERANNUATION
Ì Identify theft alert
Ì Superannuation drawdown relief
INSURANCE
Ì Group purchasing bodies for insurance and risk products
Ì Brokers report modest premium increases
FINANCIAL PLANNING
Ì Licensing starts under new national consumer credit laws
SEMINARS
Ì August – October 2010
What to look out for?
APRA warns that the false ABR documentation used has the following features: • no official ATO letterhead;
• incorrect font (i.e. font is bolded);
• postal address listed on the documentation does not reflect the fund address on SFLU (one of the checks recommended in APRA’s 5 February 2010 letter); • alignment of fields are skewed;
• two trustee names are listed in the one document (only one name should appear, and additional trustees on a separate page).
APRA recommends that trustees do not proceed with the rollover, and provide a copy of the fraudulent document when contacting the ATO at
[email protected] in cases where they detect a fraudulent ABR document which supports a rollover application.
Source
Australian Prudential Regulation Authority, Letter to Trustees of APRA Regulated Superannuation Funds, Fraud alert: SMSF identity fraud and theft of
superannuation benefits, 5 May 2010.
Superannuation drawdown relief
On 30 June 2010, the Government announced it would extend the drawdown relief being provided for account-based superannuation pensions during 2010-11.
This change required amendments to the Superannuation Industry (Supervision) Regulations 1994 and the Retirement Savings Accounts Regulations 1997. The necessary legislation have been amended.
Source
Superannuation Industry (Supervision) Amendment Regulations 2010 (No. 3): http://www.comlaw.gov.au/ComLaw/Legislation/LegislativeInstrument1.nsf/0/74EE 360BBD32738ECA257766007A37EC/$file/1013296A100705ZEV.pdf
Retirement Savings Accounts Amendment Regulations 2010 (No. 3):
http://www.comlaw.gov.au/ComLaw/Legislation/LegislativeInstrument1.nsf/0/1E402 20BD7D1AE17CA2577670020F54E/$file/1013298A100705ZEV.pdf
INSURANCE
Group purchasing bodies for insurance and risk products
What are group purchasing bodies?
Group purchasing bodies are persons who arrange or hold cover under risk management products for others but neither issue risk management products (other than interests in a risk management scheme) nor provide any financial product advice (other than as a result of providing certain general information), according to the Australian Securities & Investments Commission (ASIC)’s
Regulatory Guide 195 for group purchasing bodies for insurance and risk products. For example,
• An industry association might arrange for Personal Accident and salary continuance policies for its staff.
• A sporting association might arrange cover for its officials and other voluntary workers.
• A Personal Accident policy can be set up to cover Volunteer Workers (volunteers do not have to pay any premium to be covered).
The activities of group purchasing bodies may constitute providing financial
services under Chapter 7 of the Corporations Act 2001 (Corporations Act) because they include dealing in a financial product and providing financial product advice.
However ASIC has given certain group purchasing bodies relief from the Australian financial services (AFS) licensing because they believe the requirements are disproportionately burdensome for them.
The relief is only available to ‘eligible’ group purchasing bodies and is subject to certain conditions.
Who are the eligible group purchasing bodies? A group purchasing body will be eligible for relief if: • it is independent; or
• its activities in arranging cover under a risk management product are incidental to its not-for-profit activities.
ASIC has given relief because they consider regulation under Chapter 7 is
disproportionately burdensome and not necessarily appropriate, given the activities of group purchasing bodies.
What are the conditions of relief?
Group purchasing bodies that are eligible for relief must meet key conditions relating to:
• disclosure of basic information to persons who are to be covered; and • receipt of payments.
If the relief conditions are not met, the group purchasing body must notify ASIC promptly after it has reason to believe that it has materially failed to comply with the conditions, or the relief will no longer apply.
Source
Australian Securities & Investments Commission, Regulatory Guide 195 for group purchasing bodies for insurance and risk products, June 2010.
http://www.asic.gov.au/asic/pdflib.nsf/LookupByFileName/RG195%20(Final).pdf/$file /RG195%20(Final).pdf
Brokers report modest premium increases
Domestic insurance policies are the only lines to show significant premium increases in the first half of 2010, according to the latest survey by the National Insurance Brokers Association (NIBA). The survey of members, completed after the June 30 renewals period, found that while the majority of brokers reported increases of 10-30% for domestic policies, which include home and car insurance, there were more modest increases of less than 10% for most commercial lines of insurance.
Source
National Insurance Brokers Association, Brokers report modest premium increases, 21 July 2010.
FINANCIAL PLANNING
Licensing starts under new national consumer credit laws
The licensing of providers of consumer credit, credit assistance and intermediaries by ASIC started 1 July 2010 following a three month registration period.
Registered persons now have until 31 December 2010 to apply for an Australian credit licence or become an authorised representative of another registered person or credit licensee.
Registration closed on 30 June 2010. If entities or individuals have not registered, the law requires that they stop engaging in credit activities until they are granted a credit licence or have become a representative of another registered person or credit licensee.
There are civil and criminal penalties under the National Credit Act for persons that provide regulated credit without being registered or holding a credit licence or authorisation.
Source
Australian Securities & Investments Commission, ASIC Credit Reform Update, Issue 20, 21 July 2010.
SEMINARS
August – October 2010 August 16
ASFA NSW, Corporate Funds Discussion Group Sydney Go to www.superannuation.asn.au
August 17
ASFA VIC, Investment Discussion Group Melbourne Go to www.superannuation.asn.au
August 17
ASFA NSW, Legislation Discussion Group Sydney Go to www.superannuation.asn.au
August 18
AILA VIC, Importers and Exporters: Product Liability Pitfalls Melbourne Go to www.aila.com.au
August 18
FPA NSW, The Referable Planner Sydney Go to www.fpa.asn.au
August 18
FPA QLD, The Referable Planner Brisbane Go to www.fpa.asn.au
August 19
ASFA VIC, Legislation Discussion Group Melbourne Go to www.superannuation.asn.au
August 19
ANZIIF VIC, Liability Discussion Group (LDF) Seminar on Cyber Liability Melbourne Go to http://www.theinstitute.com.au
August 19
ANZIIF VIC, Fundamentals of Motor Vehicle Insurance Melbourne Go to http://www.theinstitute.com.au
August 19-20
ANZIIF NSW, ANZIIF/ AICLA Claims Convention 2010: Claims Excellence Sydney Go to http://www.theinstitute.com.au
August 23
ANZIIF VIC, Goldseal – Building Client Relationship Workshop Melbourne Go to http://www.theinstitute.com.au
August 24
ASFA VIC, Small Funds Discussion Group Melbourne Go to www.superannuation.asn.au
August 24
ANZIIF VIC, VIC’s Protect your Business from a Hire gone Haywire’ - Goldseal Melbourne Go to http://www.theinstitute.com.au
August 24
ANZIIF NSW, SMUG IAG Research Centre Tour Sydney Go to http://www.theinstitute.com.au
August 25
ASFA VIC, Member Services Discussion Group Melbourne Go to www.superannuation.asn.au
August 25-26
FPA NSW, Futures for Financial Planning in Australia Sydney Go to www.fpa.asn.au
August 27
ANZIIF VIC, Generation i: Leaders of Our Pack Luncheon Melbourne Go to http://www.theinstitute.com.au
August 31
FPA VIC, The Referable Planner Melbourne Go to www.fpa.asn.au
September 1
ASFA VIC, Fund Taxation Discussion Group Melbourne Go to www.superannuation.asn.au
September 1
ANZIIF VIC, Challenging conversation Workshop Level 2 Melbourne Go to http://www.theinstitute.com.au
September 2
ANZIIF WA, Breakfast Forum Series 3: Subrogation and Contribution Perth Go to http://www.theinstitute.com.au
September 2
ANZIIF VIC, Presented by Goldseal: Telephone Communication Skills Workshop Melbourne Go to http://www.theinstitute.com.au
September 2
ANZIIF VIC, Presented by Goldseal: Negotiation Skills Workshop Melbourne Go to http://www.theinstitute.com.au
September 3
ANZIIF NSW, Building Client Relationships Workshop Sydney Go to http://www.theinstitute.com.au
September 7
ASFA VIC, Compliance Discussion Group
Melbourne Group Go to www.superannuation.asn.au
September 9-10
FPA VIC, Estate Planning Course Melbourne Go to www.fpa.asn.au
September 14
ANZIIF WA, Introduction to Reinsurance Workshop Perth Go to http://www.theinstitute.com.au
September 16
ANZIIF QLD, Generation i Trivia Night
Brisbane Go to http://www.theinstitute.com.au
September 15
ASFA VIC, Legislation Discussion Group Melbourne Go to www.superannuation.asn.au
September 21
ASFA NSW, Legislation Discussion Group Sydney Go to www.superannuation.asn.au
September 21
ANZIIF VIC, Essentials of Risk Management Workshop Melbourne Go to http://www.theinstitute.com.au
September 23
ANZIIF NSW, Generation i Leader or Our Pack Luncheon Sydney Go to http://www.theinstitute.com.au
September 23
ASFA NSW, Superannuation Accountants Discussion Group Sydney Go to www.superannuation.asn.au
September 22-23
FPA NSW, Futures for Financial Planning in Australia Sydney Go to www.fpa.asn.au
September 28
ANZIIF NSW, Essentials of Industrial Special Risks Insurance Workshop Sydney Go to http://www.theinstitute.com.au
September 28
ANZIIF QLD, The Facts About the Insurance contracts Act Brisbane Go to http://www.theinstitute.com.au
September 28
ASFA VIC, Small Funds Discussion Group Melbourne Go to www.superannuation.asn.au
September 29
ASFA VIC, Member Services Discussion Group Melbourne Go to www.superannuation.asn.au
September 30
ANZIIF NSW, Managing Personal Effectiveness Workshop Sydney Go to http://www.theinstitute.com.au
September 30
ASFA NSW, Small Funds Discussion Group Sydney Go to www.superannuation.asn.au
October 5
ANZIIF NSW, Essentials of Life Insurance and Superannuation Sydney Go to http://www.theinstitute.com.au
October 12
ANZIIF WA, Essentials of Industrial Special Risks Perth Go to http://www.theinstitute.com.au
October 14
ANZIIF QLD, Generation i Leaders of Our Pack Brisbane Go to http://www.theinstitute.com.au
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While care has been taken in the production of this document and the information contained in it, Aon Consulting Pty Limited does not make any representation as to the accuracy of this report and accepts no liability for any loss incurred by any person who may rely on it. In all cases, any recipient shall be entirely responsible for their use of this document.
© 2010 Aon Corporation Australia Limited October 18 & 25
ANZIIF WA, Understanding Professional Indemnity Insurance Perth Go to http://www.theinstitute.com.au
October 19
ANZIIF VIC, Essentials of Insurance Law Workshop Melbourne Go to http://www.theinstitute.com.au
October 19
AILA NSW, Insurance Fundamental Series – Life Insurance Policies Go to www.aila.com.au
October 20
ANZIIF NSW, Negotiation Skills Workshop Sydney Go to http://www.theinstitute.com.au
October 21
ANZIIF NSW, The Facts About the Insurance Contracts Act Sydney Go to http://www.theinstitute.com.au
October 26
ANZIIF NSW, General Insurance Cod of Practice Workshop Sydney Go to http://www.theinstitute.com.au
October 28
ANZIIF VIC, Liability Discussion Group (LDG) Seminar Melbourne Go to http://www.theinstitute.com.au
October 28
ANZIIF WA, General i: Seminar
Perth Go to http://www.theinstitute.com.au
October 28
ANZIIF NSW, Essentials of Insurance Law Workshop Sydney Go to http://www.theinstitute.com.au
October 29
ANZIIF VIC, Executive Breakfast Series 3 Melbourne Go to http://www.theinstitute.com.au
