Australian Regulators Weekly Wrap – 14 November 2022

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…

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Australian Regulators Weekly Wrap – 7 November 2022

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…

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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 – 3 October 2022

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…

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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 – 12 September 2022

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…

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Australian Regulators Weekly Wrap – 5 September 2022

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…

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Australian Regulators Weekly Wrap – 29 August 2022

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,…

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Australian Regulators Weekly Wrap – 15 August 2022

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,…

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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 – 25 July 2022

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…

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Australian Regulators Weekly Wrap – 18 July 2022

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…

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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 – 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 – 30 May 2022

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.”…

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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 – 2 May 2022

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…

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Australian Regulators Weekly Wrap – 25 April 2022

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…

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Australian Regulators Weekly Wrap – 18 April 2022

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…

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Australian Regulators Weekly Wrap – 11 April 2022

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…

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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 – 7 February 2022

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…

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Australian Regulators Weekly Wrap – 21 February 2022

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)…

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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 – 7 February 2022

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…

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Australian Regulators Weekly Wrap – 24 January 2022

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…

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Australian regulators weekly wrap Monday 2 November 2021

FAR (Treasury):Treasury hasintroducedthe final tranche of legislation to implement the Hayne Royal Commission recommendations, including Financial Accountability Regime, which is designed to extend the Banking Executive Accountability Regime to all APRA?regulated entities. In essence, FAR requires financial…

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Australian regulators weekly wrap Monday 20 September 2021

Licensing update (ASIC):ASIC has released a report outlining key issues, new and proposed changes to its licensing processes, and other work it has undertaken that affects licensees. Between July 2020 and June 2021, ASIC received 1,883 AFSL and ACL applications (an increase from 1,346 the previous year)…

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Australian regulators weekly wrap Monday 12 July 2021

Banking Code of Practice (ABA):the Australian Banking Association has announced it has commissioned anindependent reviewof the Banking Code of Practice.The Codeis independently reviewed every three years. The 2021 independent review is being undertaken by Mike Callaghan AM PSM, and is being…

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Australian regulators weekly wrap Monday 3 May 2021

Breach reporting (ASIC):ASIC has issuedConsultation Paper 340, seeking stakeholder feedback on proposed updates to its draft guidance on upcoming breach reporting reforms. ASIC seeks public comment on the draft guidance and information sheet by 3 June 2021. The consultation paper follows the Treasury consultation…

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Australian regulators weekly wrap Monday 1 March 2021

Immunity policy (ASIC): power and information. ASIC has received plenty of the former in the past 2 years, and now it is focusing on the latter. It hasreleased a policywhich sets out information on applications for immunity from civil penalty or criminal proceedings for a contravention of a provision in Part 7.10 of theCorporations Act 2001(Cth)…

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Australian regulators weekly wrap Monday 11 January 2021

Banking Code (ASIC):ASIC has approved variations to the Banking Code of Practice. The main change is that the amended Code specifies situations in which banks may decline to continue dealing with a representative that a customer in financial difficulty has appointed, if the bank reasonably considers that representative is no longer able…

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Australian regulators weekly wrap Monday 26 October 2020

Shipton & Crennan (ASIC):ASICs Chairman will temporarily step aside after it was revealed ASIC paid more than $118,000 for him to receive personal tax advice. Mr. Shipton has agreed to repay the money for the advice, which he received after he relocated to Australia from the United States to head up ASIC in 2018…

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Australian regulators weekly wrap Monday 20 July 2020

AU / UK Investigation (OAIC):the Office of the Australian Information Commissioner and the UKs Information Commissioners Office have opened a joint investigation into the personal information handling practices of Clearview AI Inc., focusing on the companys use of scraped data and bio-metrics of individuals…

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Australian regulators weekly wrap Monday 11 May 2020

Royal Commission Reforms (Treasury):huge news??and long sought and lobbied for??the Morrison Governmenthas announceda six month deferral to the implementation of commitments associated with the Hayne Royal Commission as a result of the significant impacts of the coronavirus. Under the updated timetable…

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Australian regulators weekly wrap Monday 9 March 2020

Corporate criminal reform (ALRC):the big news this week,the ALRC has discarded its thought bubble of making an executive officer criminally liable where they were in a position to influence the conduct of a corporation in relation to an offence, and they cannot prove that they took reasonable measures to prevent that…

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Australian regulators weekly wrap Monday 6 January 2020

Currency bill (Parliament): theCurrency (Restrictions on the use of Cash) Bill 2019 (Cth)will force Australians to use electronic transactions or cheques over cash for payments above $10,000 and impose two-year jail sentences and fines of up to $25,200 if they dont. You can read more about it in this previous ARWWhere…

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Australian regulators weekly wrap Monday 18 November 2019

Corporate Criminal Liability (ALRC): The ALRC has been undertaking a detailed review of Australias corporate criminal liability regime pursuant to a direction from the Attorney General. The terms of reference require the ALRC to consider potential law reform to simplify the application of criminal liability to companies…

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Australian regulators weekly wrap Monday 23 September 2019

DDO / PIP (Treasury):a development I missed in last weeks update (apologies!), the Morrison Government has released for public consultation exposuredraft regulationsto support theTreasury Laws Amendment (Design and Distribution Obligations and Product Intervention Powers) Act 2019(Cth)…

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Australian regulators weekly wrap Monday 29 July 2019

Remuneration:APRA releaseddraft prudential standard CPS 511 Remuneration(with an accompanying discussion paper) which proposes to introduce heightened requirements on firms remuneration and accountability arrangements. A response to the Hayne Royal Commission recommendations…

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