Australian Regulators Weekly Wrap – 31 October-2022

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,…

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Australian Regulators Weekly Wrap – 24 October 2022

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…

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Australian Regulators Weekly Wrap – 17 October 2022

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…

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Australian Regulators Weekly Wrap – 26 September 2022

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…

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Australian Regulators Weekly Wrap – 22 August 2022

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…

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Australian Regulators Weekly Wrap – 8 August 2022

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…

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Australian Regulators Weekly Wrap – 1 August 2022

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,…

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Australian Regulators Weekly Wrap – 11 July 2022

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…

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Australian Regulators Weekly Wrap – 4 July 2022

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…

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Australian Regulators Weekly Wrap – 27 June 2022

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…

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Australian Regulators Weekly Wrap – 20 June 2022

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…

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Australian Regulators Weekly Wrap – 13 June 2022

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…

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Australian Regulators Weekly Wrap – 6 June 2022

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…

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Australian Regulators Weekly Wrap – 23 May 2022

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…

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Australian Regulators Weekly Wrap – 28 March 2022

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…

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Australian Regulators Weekly Wrap – 21 March 2022

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…

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Australian Regulators Weekly Wrap – 14 March 2022

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…

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Australian Regulators Weekly Wrap – 14 February 2022

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…

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Australian regulators weekly wrap Monday 8 November 2021

Crypto (ASIC):ASIC has released information sheet (INFO 225) to assist the comprehension of obligations under theCorporations Act 2001and theAustralian Securities and Investments Commission Act 2001if: 1) a firm is is involved with crypto-assets such as cryptocurrency, tokens or stablecoins, whether there are elements…

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Australian regulators weekly wrap Monday 27 September 2021

Anti-hawking provision (ASIC):ASIC has finally released its guidance (RG 38) setting out its expectations on the the hawking provisions in s992A and 992AA of theCorporations Act2001 (Cth). Under these hawking prohibitions, a person must not, in the course of, or because of, an unsolicited contact…

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Australian regulators weekly wrap Monday 19 July 2021

Financial accountability regime (Treasury): recommendations 3.9, 4.12, 6.6, 6.7 and 6.8 of the Financial Services Royal Commission recommended the extension of the Banking Executive Accountability Regime to all APRA-regulated entities, with joint administration from APRA and ASIC. The Government hasreleased for consultation…

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Australian regulators weekly wrap Monday 10 May 2021

Proxy advice (Treasury):proxy advice assists institutional shareholders e.g. super funds to make decisions on how to vote on matters put to shareholders for approval at company meetings. Proxy advisers thus have a large role to play in corporate governance in Australia and give our historically high degree of institutional…

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Australian regulators weekly wrap Monday 8 March 2021

BNPL CODE (AFIA):theCode of Practicefor the Buy Now Pay Later (BNPL) sector has come into effect. The Code contains 9 key commitments to customers, including that BNPL providers will be fair, honest and ethical in dealings. Combined with their voluntary sign up to AFCA, it is a significant commitment to self regulation…

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Australian regulators weekly wrap Monday 18 January 2021

Deferred sales model (Treasury):on 10 December 2020 Parliament passed theFinancial Sector Reform (Hayne Royal Commission Response) Bill 2020, which included the establishment an industry-wide deferred sales model (DSM) for add-on insurance in response to the recommendations of the Hayne Royal Commission…

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Australian regulators weekly wrap Monday 2 November 2020

Share transfers (ASIC):ASIC has released updated regulatory guidance to formalise its policy on when it will give Chapter 6 relief for share transfers under s444GA of the Corporations Act. Section 444GA allows shares of a company in administration to be transferred by an administrator as part of a deed of company arrangement…

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Australian regulators weekly wrap Monday 27 July 2020

Prudential approach (APRA):Chair Wayne Byres hasdelivered a speech to the Trans-Tasman Business Circleon APRAs role and contribution to managing the pandemic. While there is no new information, it is a really engaging read (my top read for the week!) into what the prudential regulator has been doing and what it plans…

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Australian regulators weekly wrap Monday 18 May 2020

Class Action Inquiry (Parliament):following the ALRC and VLRC reports into class actions, on 12 May 2020 the Federal Attorney General referred to the Parliamentary Joint Committee on Corporations and Financial Services for inquiry and report by 7 December 2020 the question as toWhether the present level of regulation…

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Australian regulators weekly wrap Monday 16 March 2020

ASIC v. King(Corporations Act):the corporate regulator has won its case inAustralian Securities and Investments Commission v King[2020] HCA 4, which clarified who is a company officer potentially liable for penalties under theCorporations Act 2001(Cth). ASIC brought a civil penalty case against MFS Investment Management Ltd…

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Australian regulators weekly wrap Monday 13 January 2020

Disqualifications (ASIC):ASIC hasdisqualified three Queensland directorsfrom managing corporations based on insolvency-related offences. It found that they failed to exercise their directors duties with due care and diligence, failed to ensure their companies had paid taxes and failed to prevent the companies…

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Australian regulators weekly wrap Monday 25 November 2019

Westpac AML action (AUSTRAC):for an arguably dovish regulator since its creation in 1989, Australias anti money-laundering and terrorism financing regulator has certainly turned with a vengeance. Following its successful Tabcorp and CBA actions, it has applied to the Federal Court for civil penalty orders against Westpac…

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Australian regulators weekly wrap Monday 30 September 2019

Cigno v. ASIC (ASIC):Cigno has sought judicial review of ASICsfirst use of its new product intervention power in relation to short term credit which, in some cases, has resulted in repayment rates which are up to 1,000% of the initial loan sum achieved through layering of collateral fees. Basically, entity…

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Australian regulators weekly wrap Monday 5 August 2019

Unfair contracts terms:another week, another big development??this week it is Treasurys release of theexposure draftof theTreasury Laws Amendment (Unfair Terms in Insurance Contracts) Bill 2019(Bill) which extends the unfair contract terms protections to insurance agreements…

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