Voluntary working groups of industry experts are the way we get things done at ACSA. Participation not only provides for peer networking and building your knowledge, but
also adds your organisation’s voice in promoting systemic change. Here is a roundup of people and focus.
TAX WORKING GROUP
Congratulations to Duncan Lyon (J.P. Morgan) as the new chair of the Tax Working Group and to Doug McMeekin (NAS) as Deputy - both confirmed earlier this month. We acknowledged
the contribution of outgoing chair Vera Markovski in our last newsletter, and the Group was able to provide Vera a personal vote of thanks at the October meeting.
Key focus for the group currently includes Burton’s Case (relating to where a resident of Australia pays foreign income tax on the whole of a foreign capital gain which
is only partly assessable in Australia, only a proportionate share of the foreign income tax counts towards the foreign income tax offset). Clarifying the details
of this ruling presents as a major issue for ACSA members servicing managed funds and responsible entities.
TAX DATA SUBCOMMITTEE
This subcommittee was formed in September and now has approximately 30 invitees across the ACSA community with representation
from custodians, fund administrators, registry and technology providers.
While there is a large overlap with the Tax Working Group in terms of tax practitioners, the subcommittee also includes
subject matter experts from operations and technology to support an end-to-end lens in developing an appropriate tax
data standard for managed funds.
The group is targeting the development of data templates and common practice in key areas of inefficiency, including:
Tax Data Standard v1.
Tax Data Standard v1.0 (IT specification)
Data Mapping Tables (per current ATO/Industry body Guidance):
Tax Return Labels (individual)
AIIR (v13)
REGULATORY WORKING GROUP
The practical impacts of APRA’s Super Data Transformation Project is a current hot topic.
This changes represent a significant expansion in scope and breadth of data requirements
and will come into effect for the period ending June 2021. ACSA is currently consulting
with the peak superannuation bodies and APRA directly on the changes.
The group has also shared information on positive pathways for reference rate reform and
demise of LIBOR. More information can be found at the following links:
International Accounting Standards Board’s announcement IASB IBOR
AFMA updates, including support for the recently released ISDA default protocols AFMA IBOR Transition
OPERATIONS WORKING GROUP
After over four years at the helm, Scott Oakland (J.P. Morgan) will be stepping down as
chair of the Operations Working Group. Thank you Scott for an outstanding contribution.
The group is set to elect a new chair at the November meeting and retains strategic focus
on Corporate Actions reform and CHESS Replacement. This is coupled with business-as-usual
operational issues that benefit from dialogue on standard practice and stakeholder
advocacy.
On 1 October 2020, that ASIC and the RBA released their expectations of ASX
as it replaces the Clearing House Electronic Sub-register System (CHESS) - see ASIC / RBA announcement.
The outcome of the most recent ASX Consultation on the CHESS Replacement Revised Implementation
Timeline is expected in October 2020. ACSA’s submission to this consultation included
particular focus on the need for certainty in functional scope (including genuine improvements),
committed timeline, transaction pricing and industry-wide risk perspective. We note
that the regulator has echoed many of these same points in their expectations.
PROXY VOTING
This strategic initiative by ACSA has proven timely with policy makers showing appetite
for modernising the Corporations Act, with key reforms to virtual AGMs included in
the 2020 Federal Budget.
While we are currently in peak “proxy season” (around 80 per cent of Australian listed
company AGMs occur in September to December window), ACSA has expanded industry consultation
and is well advanced in drafting submissions on key areas, including codifying a true
record date for voting entitlements.
Policy consultant John Butler is assisting with project co-ordination, and a sub-committee
from the Operations Working Group is contributing valuable practical insight on the
challenges and opportunities for positive change. See Proxy Voting Communique.
MEMBERS AND SERVICES WORKING GROUP
Members & Services has continued to focus on the revamp of the ACSA website. A big thank you to Nicole Carnovale (Northern Trust) who has been leading
the requirements gathering workshops for the sub-committee of the Members & Services Working Group.
The group is also supporting ACSA’s external image and awareness with a calendar of external conference engagement, most recently a pre-recorded webinar
for the ASI Conference: Special Interest Session – Pandemic Disruption.See ASI ACSA Session.
In case you missed it, ACSA hosted the live webinar Careers in the New Normal on 23 September 2020. We had 66 attendees, and the post-event feedback
was overwhelmingly positive. A recap on the webinar, question responses and link to the session recording can be found at the following link.
Additional ACSA member events are also planned with a mixture of special interest topics and industry macro trends (especially those impacting key client
segments).
COMING UP
ACSA is hosting a webinar for Member Executives (Full and Associate) on Friday 13 November. This invitation only event will provide a review of key asset servicing macro themes, opportunities
for positive change and how ACSA’s advocacy agenda is shaping the road ahead. Stay tuned for highlights in our next newsletter.
Nominations for the 2021 ACSA Awards will open in November. These coveted awards recognise those who go above and beyond to support the Association, the industry and our clients. So over
to you – help ACSA publicly acknowledge individuals who are recognised by their peers for their professionalism, knowledge and willingness to contribute. Think about who you will nominate,
and look out for details in the next Industry Wrap and on the website.
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