Risk Regulatory Update

Regulatory Updates

FASEA exam online in Melbourne

The Financial Adviser Standards and Ethics Authority (FASEA) has cancelled Melbourne in-person exams in August due to stage three pandemic restrictions. Those enrolled for the August sitting can either do the exam online or defer the exam for a later sitting. Other in-person exams will still be held in Geelong, Ballarat, Traralgon and Albury/Wodonga unless otherwise notified.

APRA imposes new licence conditions on CFS Investments Limited and Suncorp Portfolio Services

The Australian Prudential Regulation Authority (APRA) has imposed a new licence condition on Colonial First State Investments Limited (CFSIL) to force prioritising member best interests during decision-making. The decision was made after investigations were referred to it by the Royal Commission early in 2019.

The Royal Commission was of the view that CFSIL’s decisions not to bring the migration of certain cohorts of FirstChoice superannuation members into MySuper products forward, instead using grandfathering arrangements, may not have been in members’ best interests.

The new licence condition requires CFSIL to record its considerations of members’ best interests and priorities when making decisions that materially affect their interests.

APRA has also investigated a matter referred by the Royal Commission regarding the delay in transferring members into Suncorp Portfolio Servies’ lower-fee MySuper product until just before the legal deadline. The new licence condition is to improve decision-making processes and ensure members’ best interests are being appropriately considered and prioritised.