Australian regulators weekly wrap — Monday, 23 January 2023
January 21
No Comments
This update covers: FAR, Crypto risks, deposit rate investigation, cancellations of AFSLs and Sean Hughes’ departure from ASIC.
Australian regulators weekly wrap — Monday, 16 January 2023
January 14
No Comments
Covering Banking Code, IR Derivatives, FIRB Penalties, Greenwashing and the Financial advisers register.
Australian Regulators Weekly Wrap – 19 December 2022
December 19
No Comments
Finder (ASIC): ASIC has commenced civil penalty proceedings in the Federal Court against Finder Wallet Pty Ltd, for allegedly providing unlicensed financial services, breaching product disclosure
Australian Regulators Weekly Wrap – 12 December 2022
December 13
1 Comment
American express (ASIC): ASIC has commenced proceedings in the Federal Court against Amex, in ASIC’s first civil penalty case alleging breaches of design and distribution obligations.
Australian Regulators Weekly Wrap – 21 November 2022
November 19
No Comments
Crypto custody (Treasury):Treasury has announced that there will be custody rules introduced for digital assets in 2023. The exclusive in this AFR article (linkhere), provides that Treasury will open consultations to safeguard crypto custody arrangements and regulate…
Australian Regulators Weekly Wrap – 14 November 2022
November 12
No Comments
FTX (Regulation): The digital assets world has been rocked by the liquidity run on FTX the week, the world’s second largest exchange, and the near buyout by Binance, the world’s largest exchange. While there are various reasons being put forward for the issues facing FTX, in a febrile…
Australian Regulators Weekly Wrap – 7 November 2022
November 6
No Comments
ASIC inquiry (Parliament):On 27 October 2022, the Parliamentary Joint Committee on Corporations and Financial Services began an inquiry into ASICs capacity and capability to respond to reports of alleged misconduct. The committee will call for written submissions in due course…
Australian Regulators Weekly Wrap – 31 October-2022
October 29
No Comments
Financial Accountability Regime (Parliament): As expected, the Senate Committee examining the reintroduced FAR bill has give it the tick of approval, stating, “The committee is of the view that accountability measures, such as the existence of banning powers and deferred remuneration arrangements,…
Australian Regulators Weekly Wrap – 24 October 2022
October 22
No Comments
Crypto Stop Orders (ASIC): ASIC has just issued an interim stop order on Holon (its tenth to date), which offers various crypto funds to retail investors, on the basis that it thinks that Holon has not appropriately considered the features and risks of the funds in determining their target markets…
Australian Regulators Weekly Wrap – 17 October 2022
October 15
No Comments
FAR & Breach Reporting (ASIC): I attended the Credit Law Conference earlier in the week, where ASIC Commissioner Sean Hughes provided an update on the Financial Accountability Regime (FAR) and breach reporting. My key notes are: – the Financial Accountability Regime Bill 2022…
Australian Regulators Weekly Wrap – 10 October 2022
October 9
No Comments
Crypto Report (Parliament): I have now spent a bit of time on the new crypto bill. By way of reminder, on 19 September 2022, Senator Andrew Bragg released a draft private members bill, entitled the Digital Assets (Market Regulation) Bill 2022 (the Bill). Under the Bill, a licence is required to carry out the following activities in Australia…
Australian Regulators Weekly Wrap – 3 October 2022
October 2
No Comments
Remediation Plan (ASIC): ASIC has released its new remediation guidance, RG 277. Mandatory reading for anyone who deals with breach reporting, and fixing the problems that arise up, RG 277: clarifies nine principles for conducting a remediation, which will help licensees comply with their obligations and conduct…
Australian Regulators Weekly Wrap – 26 September 2022
September 24
No Comments
Licensing update (ASIC): I attended an ASIC licensing update earlier in the week, and it was fascinating! My notes are in my weekly newsletter, which you can access here (reach out to me if you wish to be on the emailing list). The resourcing, consistency and strategy of the division was discussed, together with other matters…
Australian Regulators Weekly Wrap – 19 September 2022
September 18
No Comments
FAR (Parliament): The FAR bill is in Parliament, and is likely to pass in the Spring sitting which ends in December 2022. See here for details. The Government is now seeking stakeholder views on the Minister Rules. The Minister Rules prescribe…
Australian Regulators Weekly Wrap – 12 September 2022
September 10
No Comments
FAR (Parliament): IT. IS. FINALLY. HERE. AND. I. AM. EXCITED! This week, the Federal Government introduced the Financial Accountability Regime Bill 2022 (Cth). The bill reintroduces the Financial Accountability Regime Bill 2021 (Cth), which was introduced by the previous Government but lapsed with the calling…
Australian Regulators Weekly Wrap – 5 September 2022
September 3
No Comments
FAR (ASIC): Information from an ASIC session with the Chair and Commissioners this week in which I took the following notes. FAR will be passed in Spring sitting. It will come into effect for ADIs in March 2023. It will come into effect for Super / Insurers in March 2024. Finally, there is lots of work going on in the background…
Australian Regulators Weekly Wrap – 29 August 2022
August 28
No Comments
Token Mapping (Treasury): The Government has announced that Treasury will prioritise token mapping work in 2022, which will help identify how crypto assets and related services should be regulated. The aim will be to identify notable gaps in the regulatory framework, and progress work on a licensing framework,…
Australian Regulators Weekly Wrap – 22 August 2022
August 20
No Comments
AG Priorities (Government): The meeting of the Federal and State Attorney-Generals has occurred with them setting out their common reform priorities. Not much from a financial services regulatory perspective. They continue to focus on defamation, access to digital records upon death/incapacitation and national register for enduring POAs…
Australian Regulators Weekly Wrap – 15 August 2022
August 14
No Comments
Corporate Plan (APRA): APRA’s new Corporate Plan for 2022/2023 is based around the twin themes of protecting the community today, as well as ensuring the Australian financial system is prepared for tomorrow. The plan is designed to respond to rapid changes in APRA’s operating environment,…
Australian Regulators Weekly Wrap – 8 August 2022
August 6
No Comments
CSLR (ASIC): Such an interesting time for updates from the corporate regulator, who has advised that “Former clients of Dixon Advisory and Superannuation Services Pty Limited (in administration, Dixon Advisory) may be eligible for compensation under a potential future Compensation Scheme of Last Resort but they…
Australian Regulators Weekly Wrap – 1 August 2022
July 30
No Comments
DDO (ASIC): MASSIVE news this week on the AISC enforcement front. It has placed interim stop orders on three financial firms in response to deficiencies in the target market determination for their products. These actions are ASIC’s first use of the stop order powers under the design and distribution obligations,…
Australian Regulators Weekly Wrap – 25 July 2022
July 24
No Comments
FATCA/CRS (ATO): The ATO has issued a self-review guide and toolkit on the internal processes and systems that reporting financial institutions should maintain to comply with the Foreign Account Tax Compliance Act and the Common Reporting Standard, which has been something of a focus for it in preceding years…
Australian Regulators Weekly Wrap – 18 July 2022
July 17
No Comments
Conflicted Remuneration (ASIC): In Australian Securities and Investments Commission v Select AFSL Pty Ltd (No 2) [2022] FCA 786, the Federal Court of Australia held that conflicted remunerations contraventions took place for the Respondent, Select AFSL. Select AFSL was part of a corporate group structure which retailed…
Australian Regulators Weekly Wrap – 11 July 2022
July 10
No Comments
Lanterne (ASIC): ASIC has commenced civil penalty proceedings against Lanterne Fund Services, alleging multiple failures to meet the obligations of its AFSL, including a failure to meet organisational competence requirements. It alleges Lanterne, under a licensee for hire business model e.g. under Corporate Authorised Representative…
Australian Regulators Weekly Wrap – 4 July 2022
July 2
No Comments
Threshold Transaction Reports (AUSTRAC): AUSTRAC has released updated guidance on reporting threshold transaction reports when a customer conducts multiple cash transactions, following industry consultation on the draft guidance released in November 2021. A reporting entity providing…
Australian Regulators Weekly Wrap – 27 June 2022
June 25
No Comments
Litigation Funders (Treasury): Well, that did not take long! Assistant Treasurer Stephen Jones has put himself on record, stating that the process of funder backed class action will be removed from ASIC and remitted to the Federal Court and state supreme courts. It follows Attorney-General Mark…
Australian Regulators Weekly Wrap – 20 June 2022
June 18
No Comments
Cyber Safety (ASIC): ASIC has urged listed firms to pay attention to cyber risks, noting World Economic Forum released its annual Global Risks Report 2022 and failure of cyber security measures was the number one risk for Australian executives. ASIC’s December 2021 resilience…
Australian Regulators Weekly Wrap – 13 June 2022
June 12
No Comments
Crypto Legislation (US): I am not sure what is happening in the US with leaked documents recently, but the WSJ has leaked the draft crypto legislation which you can readhere. A dense document it is US legislation after all some of the key points are: the bill is centered around the terms digital asset…
Australian Regulators Weekly Wrap – 6 June 2022
June 5
No Comments
AFSL Auditing (ASIC): ASIC has announced new financial reporting requirements for AFSL holders, following changes to the accounting standards. AFSL holders financial reports must now contain disclosures consistent with the financial reports of other for-profit entities, prepared under standards set by the AASB…
Australian Regulators Weekly Wrap – 30 May 2022
May 29
No Comments
Federal ICAC (Election): the election is over, and the red team has formed a majority Government. Importantly, the main election promise Labor has made on integrity is to establish what it says will be a “powerful, transparent and independent National Anti-Corruption Commission.”…
Australian Regulators Weekly Wrap – 23 May 2022
May 21
No Comments
Prudential Perspectives (APRA): Chair Wayne Byres has identified digital disruption, and the emergence of higher inflation and rising interest rates as key impacts affecting the banking industry in a speech to FINSIA. He also identified that common theme that increasingly pervades all three sectors of the industry…
Australian Regulators Weekly Wrap – 2 May 2022
May 1
No Comments
Breach Reporting (Research): Independent research commissioned by Gadens and Lawcadia on the enhanced AFSL/ACL breach reporting regime has been released this week. In summary, this research reveals: a marked increased in breach reporting for AFSL and ACL holders; a suggestion…
Australian Regulators Weekly Wrap – 25 April 2022
April 24
No Comments
Litigation Funding Schemes (ASIC): ASIC has extended the relief from certain dollar disclosures in PDS’s for litigation funding schemes in ASIC Corporations (Disclosure in Dollars) Instrument 2016/767 until 1 October 2026. Relief has been extended by ASIC Corporations (Amendment) Instrument 2022/264…
Australian Regulators Weekly Wrap – 18 April 2022
April 16
No Comments
Margin Requirements (APRA): The prudential regulator has made amendments to Prudential Standard CPS 226 Margining and risk mitigation for non-centrally cleared derivatives, by adding the UK’s Prudential Regulation Authority and Financial Conduct Authority to the list of foreign regulators in Attachment D…
Australian Regulators Weekly Wrap – 11 April 2022
April 10
No Comments
Capital Adequacy (APRA): The prudential regulator has released for consultation the interim reporting standards that will accompany the updated capital adequacy and credit risk capital requirements for authorised deposit-taking institutions. It follows the release in November 2021…
Australian Regulators Weekly Wrap – 28 March 2022
March 26
No Comments
Crypto regulation (Treasury): the Treasury has released its consultation paper onCrypto asset secondary service providers: Licensing and custody requirements(Consultation Paper) raising 32 consultation questions in relation to crypto licensing and custody requirements…
Australian Regulators Weekly Wrap – 21 March 2022
March 20
No Comments
CDR Extension (Treasury): In January 2022, the Government announced that the Consumer Data Right (CDR) would expand to Open Finance as the next sector to be assessed. A massive step for the financial services industry, phase 1 of Open Finance will include the assessment and designation of the non-bank lending sector…
Australian Regulators Weekly Wrap – 14 March 2022
March 12
No Comments
Youpla Group (ASIC): Very unusual. Following the liquidation of one funeral fund, ASIC has written to the directors of Youpla Group to ask them to take immediate and public action to address concerns about the financial viability of ACBF 1, ACBF Plan and ACBF Community. Youpla manages four entities that…
Australian Regulators Weekly Wrap – 7 February 2022
March 6
No Comments
Advice Update (ASIC): ASIC has released a consultation paper setting out its proposals to update Regulatory Guide 263 Financial Services and Credit Panel (RG 263) to reflect legislative changes in the Financial Sector Reform (Hayne Royal Commission Response Better Advice) Act 2021…
Australian Regulators Weekly Wrap – 28 February 2022
February 26
No Comments
Ransomware (Parliament): On 17 February 2022, the Crimes Legislation Amendment (Ransomware Action Plan) Bill 2022 was introduced into the House. The bill amends the Criminal Code Act 1995, the Crimes Act 1914 and the Proceeds of Crime Act 2002 to updated criminal offences and procedures…
Australian Regulators Weekly Wrap – 21 February 2022
February 20
No Comments
FAR (Senate Report): The Senate Economics Legislation Committee has completed its report into the Financial Accountability Regime Bill 2021. The Committee has recommended that the bills be passed, complete with civil penalties introduced in the FAR regime (despite appreciable lobbying to the contrary)…
Australian Regulators Weekly Wrap – 14 February 2022
February 12
No Comments
CCIV (Parliament): The Corporate Collective Investment Vehicle Framework and Other Measures Bill 2021 finally passed Parliament on 10 February. The CCIV regulatory framework utilises a company structure limited by shares so that it is recognisable to offshore investors and fund managers. As a company, a CCIV will generally be…
Australian Regulators Weekly Wrap – 7 February 2022
February 6
No Comments
APRA priorities (APRA): The prudential regulator has released its policy and supervision priorities for the next 12 to 18 months. Policy priorities for 2022 include: a major multi-year initiative to modernise its prudential architecture; improving crisis preparedness, including finalising two new prudential standards…
Australian Regulators Weekly Wrap – 31 January 2022
January 29
No Comments
Electronic Surveillance Laws (Home Affairs): The Government has released the Reform of Australia’s electronic surveillance framework discussion paper. The discussion paper seeks early views to inform the development of a new framework, and provides an overview of how the Government proposes to reform Australia’s…
Australian Regulators Weekly Wrap – 24 January 2022
January 22
No Comments
Exchange Traded Products (ASIC): ASIC has released Consultation Paper 356 ETP naming conventions: Updates to INFO 230 (CP 356), seeking feedback on proposals to update the guidance in Information Sheet 230 Exchange-traded products: Admission guidelines (INFO 230), on naming conventions for licensed…
Australian Regulators Weekly Wrap – 17 January 2022
January 16
No Comments
Liquidity Facility (APRA): APRA has issued a letter to banks announcing the aggregate Committed Liquidity Facility has reduced to $102 billion on 1 January 2022 from $140 billion on 10 September 2021.Since January 2015, those ADIs to which APRA applies the Basel III liquidity standards have…
Australian regulators weekly wrap Monday 10 January 2022
January 9
No Comments
January changes (Legislation):by way of a quick refresher, new requirements which commence this month include: APS 220 Credit Risk Management; Financial Services and Credit Panel commences; SP S250 Insurance in Superannuation; Insurance Claims Handling required AFSL…
Australian regulators weekly wrap Monday 3 January 2022
January 1
No Comments
Foreign financial services providers (Treasury):the Federal Treasury has released exposure draft legislation implementing AFSL relief options for foreign financial service providers (FFSPs). In the 2021?22 Budget, the Government announced as part of the Global Talent Attraction…
Australian regulators weekly wrap Monday 13 December 2021
December 12
No Comments
Payments system (Treasury):Treasury isplanning to legislatethe largest reforms to our payments systems in a quarter of a century. The overhaul of the payments system will provide protections for consumers who make purchases on their mobile phones, use buy now, pay later platforms, and invest in cryptocurrency…
Australian regulators weekly wrap Monday 29 November 2021
November 29
No Comments
Litigation funding (Treasury): the Governments legislation to cap litigation funders fees to 30% (seehere), has narrowly passed the House. The draft legislation provides judges with additional powers to approve or vary the share of proceeds to ensure the distribution is fair and reasonable, with litigation…