Financial Services & Superannuation

Our Financial Services and Superannuation practice, led by Chris Ketsakidis, deals with the full suite of legal challenges facing participants in the trustee, superannuation and financial services sector.

Some of the matters we have recently undertaken include:

• Merger of Public Sector Funds – we acted for the union stakeholders in the merger of two exempt public sector superannuation funds involving over $25 billion in entitlements.  We provided tax, prudential and commercial advice on the merger.  We negotiated the terms of the merger and the composition of the board, which included drafting and reviewing the legislative framework that effected the change and contained the governing rules of the new scheme.
  
• Retail Funds and Managed Investment Schemes – we act for the trustees of a number of wholesale and retail managed investment schemes, retail superannuation funds and a pooled superannuation trust. Our work for trustees has included:
  
  • assisting with a variety of financial services matters including FSR transition, AFSL application preparation, wholesale and retail managed fund establishment and operation, product disclosure statement/prospectus preparation, due diligence and review, and liaising with APRA and ASIC; 
  •  providing advice on the financial services provisions of the Corporations Act and the tax legislation, including contributions splitting, superannuation guarantee and simplified (better) superannuation;
  • providing tax, prudential and commercial advice on the establishment of new divisions within a superannuation master trust, and drafting the provisions of those new divisions
  • amending trust deeds following legislative changes;
  • advising the trustee on the requirements of the Superannuation Industry (Supervision) Act 1993 to obtain an APRA licence and assisting with the application process;
  • drafting investment management and custody agreements; and
  • drafting and reviewing disclosure documents, annual reports, newsletters and member communications.
• Worker entitlement funds – we have advised trustees and stakeholders of worker entitlement funds on a variety of issues including:
  
  • the tax, prudential and commercial issues surrounding their establishment and operation;
  • the prudential and tax aspects of successor fund transfers, negotiating and documenting the terms of the transfer;
  • negotiating and drafting Computer and Software Agreements;
  • negotiating and drafting Administration Agreements;
  • drafting private ruling applications to the Commissioner of Taxation in relation to the application of the tax legislation to certain investments;
  • drafting and amending trust deeds and other governing rules, including to comply with the Fringe Benefits Tax Assessment Act 1986, compliance plans, advising on compliance procedures and registration, due diligence advice and dealing with the ATO;
  • acting for trustees in tax audits by the ATO;
  • restructuring funds to offer additional benefits to workers on termination of their employment, and
  • prudential advice on the application of the managed investment and financial services provisions of the Corporations Act.
    
• Public Sector Superannuation Scheme – we act for a South Australian exempt public sector superannuation scheme for local government employees. We prepare and review its disclosure documents, annual reports, newsletters and other member communications.
  
• Successor Fund Transfers – we have advised trustees of corporate superannuation plans, unions and employers on successor fund transfers of superannuation entitlements to retail master trusts and public sector superannuation schemes, including tax advice on the superannuation guarantee consequences of the transfer and the tax consequences of transferring the various fund assets to the successor fund; drafting the successor fund transfer agreements; conducting due diligence to ensure that the funds were equivalent for the purposes of the successor fund transfer provisions and preserving concessional notional earnings bases.
  
• Superannuation Guarantee Advice – we provided superannuation guarantee advice to second tier banks, building societies, tertiary institutions, unions and employers outlining their obligations to provide superannuation support for their employees. We have objected to assessments from the Australian Taxation Office (ATO) for superannuation guarantee charge and negotiated with the ATO to remit penalties where there has been a shortfall.

We are committed to understanding and influencing events shaping the industry. Reflecting this commitment, we regularly participate in industry bodies and networks and liaise with regulatory and governmental authorities.  We are regular speakers at seminars, and contributing authors to the Thompson ATP Australian Tax Handbook in relation to superannuation and authors of many articles on issues affecting superannuation.