Fund Regulatory Update

ASIC suspends ISG and cancels Quattro AFS license

The Australian Securities and Investments Commission (ASIC) has suspended the Australian financial services licences of ISG Financial Services Limited until 30 September 2022. ISG is the responsible entity for two managed investment schemes, the ISG Real Estate Equity Fund and the ISG Private Access Fund. ISG was found by ASIC to have failed to meet statutory audit and financial reporting lodgement obligations for itself and its two schemes. ASIC also said that ISG failed to have proper professional indemnity insurance coverage in place between 14 July 2020 and 21 June 2021. Proper insurance has now been obtained.

The AFS licence of Quattro Management was cancelled because the company has never provided financial services since its licence was issued in 2009. Quattro failed to b become a member of the Australian Financial Complaints Authority (AFCA),

ASIC seeking feedback on proposed sustainability standards

ASIC is urging companies, investors, advisers and other vested parties to give their views on draft global sustainability disclosure standards, stating there will be an inevitable impact of changes on local markets. Feedback is being sought by the International Sustainability Standards Board (ISSB). The ISSB was set up at the COP26 summit to develop a single set of standards to meet the information needs of investors.

RIC now in effect

Superannuation funds must now have a retirement strategy in place for members with the introduction of the Retirement Income Convenant (RIC) legislation. Funds must also publish a summary of said retirement income strategy online for members.

APRA seeks feedback on SG Act

Registrable superannuation entity licensees of Defined Benefit funds have received a letter requesting their input on amendments to the Superannuation Guarantee (Administration) Act 1992 (SGAA), which commenced in 2020. Any unintended consequences should be highlighted by the changes by the Treasury Laws Amendment (Your Superannuation, Your Choice) Act 2020 which amended the SGAA. Consultation is open until 8 September 2020.