This week’s blog covers Binance’s debanking, fines levied on AMP for charging deceased customers and an excellent speech by APRA on governance.
This week’s blog covers ASIC’s DDO report, an important life insurance case and reporting of IDR data to ASIC
This week’s post covers breach reporting updates from ASIC, EU’s MiCA passing, AFCA’s MoU with APRA and more!
This week’s post covers academic papers on FAR, ASIC’s great update on super disclosure, finfluencer risk and more.
This week’s post is a big one! Binance’s cancelled AFSL, the UCT action against A&G and the FCA’s different approach to finfluencer conduct. Its all here!
This week’s blog covers new crypto regulation, action against Binance and AFCA’s updated rules.
Lots happening this week with ASIC’s RACQ action, the Senate hearing on crypto and multiple tweaks to ASIC’s DDO / PIP power.
This week’s blog covers massive privacy reforms, ASIC’s cool new regulatory timetable, and more uses of the DDO power.
A super interesting week covering: future of financial advice reforms; SEC’s action against Kraken regarding ‘staking’; the Government’s vision for crypto protection in Australian moving forward and more!
This blog covers: crypto reform in the UK, our crypto token mapping exercise in Australia, FAR fines and ASIC’s new restructure. It has been an exciting week!
Covers federal judicial commission; AFCA case; legislative design; ACMA powers, and UK crypto licensing matters. Plus my Chat GPT thoughts!
This update covers: FAR, Crypto risks, deposit rate investigation, cancellations of AFSLs and Sean Hughes’ departure from ASIC.
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
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…
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…
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…
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,…
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…
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…
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…
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…
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,…
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,…
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…
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…
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…
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…
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…
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…
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…
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…
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…
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…
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)…
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…
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…
DI system (Treasury): the Federal Government has released an exposure draft of theTrusted Digital Identity Bill.It elates to the expansion of the DI System, which facilitates the creation of Digital Identity for individuals and allows businesses to use it for approved verification purposes. A Digital Identity only needs to be created…
AUSTRAC portal (AUSTRAC):the AML / CTF regulator is seeking to update its portal. It has just released market feedback on user-expressed priorities, which include as key issues: the design of the suspicious matter reporting report and process (priority issue of 44% of responders); user Experience and User Interface…
AML / CTF (Treasury):amendments to theAnti-Money Laundering and Counter-Terrorism Financing Act 2006(Cth) (AML/CTF Act) andAnti-Money Laundering and Counter-Terrorism Financing Rules 2006(Cth) (AML/CTF Rules) came into effect on 18 June 2021, changing the previous due diligence obligations…
CFDs (ASIC): ASICsproduct intervention order which reduces CFD leverageavailable to retail clients and targets CFD product features and sales practices that amplify retail clients CFD losses, such as providing inducements to become a client or to trade, has now taken effect. CFDs are a leveraged derivative that allows a client to speculate…
Continuous disclosure (Treasury):the Morrison Governmenthas introducedtheTreasury Laws Amendment (2021 Measures ?1) Bill 2021. It amends theCorporations Act 2001to embed the temporary COVID-19 changes made to Australias continuous disclosure laws, and extend the changes made to allow for virtual Annual…
Insolvency laws (Treasury):the major insolvency law changes proposed as part of the Federal Budget have passed Parliament. The legislation introduces a new, simplified debt restructuring process that can be accessed by small businesses experiencing distress. This process draws on key features of the Chapter 11 bankruptcy…
PPSA / Financial Products (AG):the Federal AG is seeking the publics views on the practical impact of thePersonal Property Securities Act 2009on the trading of financial products, including whether the current provisions in the legislation should be amended, the reasons for any proposed changes and the nature…
Banking Code (ASIC): ASIC has approved a variation of the Banking Code of Practice from 1 July 2020, in the form of aspecial note. The variation, as suggested by the Australian Banking Association, involves the insertion of a Special Note into the Code to allow for special application of specified Code provisions until 1 March 2021…
Enforcement priorities (ASIC):ASIC has provided further information to its update on 23 March, in which it said it would defer key internal actions e.g. the new RG 165??complaints handling. ASIC has said that going forward it will focus on areas where there is the risk of significant consumer harm, serious breaches of the law…
Compensation scheme of last resort (AFCA):AFCA has reiterated its strong support for creating a compensation scheme of last resort (e.g. where compensation cannot be paid by a firm because of insolvency) in a submission to The Treasury in response to its Discussion Paper released on 20 December 2019 Implementing Royal…
Modern slavery (legislation):the Morrison Government will establish a Modern Slavery Expert Advisory Group comprised of representatives from business, academia and elsewhere to provide advice on key issues and strengthen business engagement to effectively implement the new laws…
Market-based causation (Class Actions):oft-times regulatory actions spawn class actions e.g. the BBSW and FX class actions, so it is not too tangential to start this weeks update with the recentMyer class action decision. In short, the department stores shareholders alleged that it had engaged in misleading conduct by…
Class actions / consumer protections: starting somewhat tangentially this week, albeit with more regulatory enforcement activity there are inevitably more class actions, Justice Parker of the NSW Supreme Court recently refused to approve a solicitors costs and a common fund order…
Production intervention:ASIC is not wasting any time??hot off the heels of its recent consultation paper as to how it should best use its new product invention power (read more about that in the 1 July 2019 alerterhere) ASIC has released a consultation paper (CP 316)on its first proposed…
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