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PRIVACY, COPYRIGHT, DISCLAIMER
Promoting an effective regulatory framework for the industry [top] They are also subject to certain Commonwealth legislation in respect of some of their other activities, ie:
The Standing Committee of Attorneys General (SCAG) is currently looking at harmonising State and Territory legislation to ensure uniform licensing and prudential supervision regimes for trustee corporations. These arrangements will continue to ensure that only entities able to meet the highest standards of fiduciary care and professionalism can obtain the status of government endorsed statutory trustee corporations. Following representations to the Federal Treasury and the Australian Securities and Investments Commission (ASIC) about the practical difficulties of applying the Financial Services Reform Act 2001 (FSRA) to some activities of trustee corporations, regulations have been prepared which provide certain exemptions from the Act's licensing requirements, including where:
Seeking the ability to charge realistic fees for trustee services [top] It should be noted that there is no lack of competition in the products and services offered by trustee corporations - this comes both from within the industry and from other financial service providers, such as accountants, solicitors, financial planners and banks, which provide some of the same products or services. We believe that adequate protection for beneficiaries/clients is provided by:
One particular area where trustee corporations provide valuable expertise and carry unique fiduciary responsibilities is in undertaking the administration of long term charitable trusts and foundations. This role involves the application of a high level of professional skill, care, and attention across a range of areas including legal, taxation, accounting and asset management. A longstanding issue in NSW is that the legislated maximum annual fees applicable to long-term charitable trusts, regardless of the complexities involved in their management, are set below those for other long-term trusts. The inability to recover the costs of operating charitable trusts diminishes the incentive to promote this valuable area of philanthropic endeavour. This, in turn, diminishes the services provided to those who otherwise would benefit from charitable trusts. The TCA has been seeking the agreement of the NSW Government to bring the maximum fees for charitable trusts into conformity with those for other long term trusts. Philanthropy Australia Ltd is supportive of this proposal, on the basis that the TCA has developed appropriate industry dispute resolution procedures in respect of fee increases. Promoting equitable taxation of trusts [top] In fact, the vast majority of trusts are created for legitimate reasons, including protecting the interests of minors and the disabled, and for charitable purposes. Those arrangements generally are merely conduits through which assets can be invested and maintained during the beneficiaries' lives or for the benefit of future generations. The TCA seeks to ensure that any Government proposals for reform of the taxation system do not have unintended, adverse consequences for the legitimate use of trusts or for their beneficiaries. Seeking equitable APRA levies on superannuation funds [top] We believe that the system for calculating APRA's supervisory levies which, for 2005/06 includes a flat fee of $500 pa per SAF, results in SAFs incurring a disproportionate share of the cost of APRA's supervision of the superannuation industry, given that APRA’s focus in supervising SAFs is very much on the capabilities of the Approved Trustees that manage the several thousand funds involved and is less intensive than for other regulated superannuation funds. The Government has acknowledged that supervisory costs per fund are lower the greater the number of funds under the same trustee – in this regard, it is relevant to note that while there are about 40 Approved Trustees that manage SAFs, the great bulk of that business is handled by 3 TCA members. Our understanding is that APRA's focus in supervising the SAFs segment of the superannuation industry is very much on the capabilities and performance of the respective Approved Trustees that manage the several thousand individual funds involved. We believe that consideration should be given to adopting a levy formula that has regard to the number of SAFs, and aggregate assets of those particular funds, being managed by each Approved Trustee. This would acknowledge the apparent economies of scale enjoyed by APRA in its supervision of those funds. Promoting effective protective arrangements for the elderly [top]
We have submitted to the Government that:
Promoting effective investor protection arrangements for the superannuation and managed investments sectors [top]
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