Australian Regulators Weekly Wrap – 21 November 2022

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…

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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 – 10 October 2022

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…

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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 – 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 – 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 – 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 – 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 – 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 – 28 February 2022

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…

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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 – 31 January 2022

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…

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Australian regulators weekly wrap Monday 30 August 2021

Corporate plan (APRA): APRA has released itsnew corporate planuntil 2025, focusing key action items to: 1) preserve the resilience of banks, insurers and superannuation funds, with a continuing focus on financial strength; cyber risks; governance, risk-culture, remuneration and accountability; and implementing…

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Australian regulators weekly wrap Monday 23 August 2021

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…

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Australian regulators weekly wrap Monday 16 August 2021

Breach reporting (Treasury):theFinancial Services Sector Reform (Hayne Royal Commission Response Breach Reporting and Remediation) Regulations 2021was issued last week. It removes some unfortunately not many civil penalty provisions from the new AFSL breach reporting regime commencing in October 2021…

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Australian regulators weekly wrap Monday 9 August 2021

AML / CTF Rules (AUSTRAC):AUSTRAC has releaseddraft Anti-Money Laundering and Counter-Terrorism Financing Rules for public consultation. The draft proposes to add Chapters 79 and 80, and amend Chapters 21 and 48 of the AML/CTF Rules. Under the changes, financial institutions will be permitted to carry out…

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Australian regulators weekly wrap Monday 26 July 2021

Business interruption (APRA):the prudential regulator will require a number of general insurers to review the soundness of their risk management frameworks in light of recent issues with business interruption insurance by 30 November 2021. APRA has stated that lockdowns and other restrictions associated with COVID-19…

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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 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 5 July 2021

Securitisation trusts (Accounting): securitisation trusts that undertake to prepare financial reports in accordance with AASBs will have to prepare general purpose financial statements from 1 July.AASB 20201Removal of Special Purpose Financial Statements for Certain For-Profit Private Sector Entitiesremoved…

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Australian regulators weekly wrap Monday 27 April 2020

Prudential standards and FAR (APRA): APRA has announced new commencement dates for six prudential and reporting standards that have been finalised but are yet to fully come into effect. CPS 226 Margining and Risk Mitigation for Non-Centrally Cleared Derivatives (phase-in of initial margin requirements); APS 220…

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Australian regulators weekly wrap Monday 13 April 2020

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…

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Australian regulators weekly wrap Monday 6 April 2020

COVID-19 Taskforce (ACCC):the ACCC has established an internal COVID-19 Taskforce which is communicating with businesses to educate them about their obligations in relation to cancellations, refunds and suspension of services as a result of COVID-19. The ACCChas said thatits focus more broadly is on: 1) COVID-19 scams…

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Australian regulators weekly wrap Monday 30 March 2020

Regulatory deferrals (Legislation):theCoronavirus Economic Response Package Omnibus Bill 2020(Cth) has been passed. Relevantly, s. 1362A allows the Minister by legislative instrument to exempt classes of persons from the operation of specified provisions of theCorporations Act 2001(Cth) or the regulations, or modify…

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Australian regulators weekly wrap Monday 23 March 2020

Insolvent trading (Legislation):in response to COVID-19, the Morrison Government has lifted the threshold on statutory demands (which are used to commence winding up actions against companies) from $2,000 to $20,000 and businesses will have 6 months instead of 21 days to respond to them…

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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 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 2 March 2020

Best interests(ASIC):ASIC has released aconsultation paper CP 327 on the new best interests duty for mortgage brokers which is open until 20 March 2020. You can read more on the best interests duty, and ancillary changes e.g. prohibition on giving / receiving conflicted remuneration, in thispast ARWW briefingorhere…

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Australian regulators weekly wrap Monday 8 July 2019

Foreign licensing relief:ASIC released aconsultation paper(CP 315) proposing to provide licensing relief i.e. from the need to hold an AFSL for foreign financial services firms providing funds management advice to Australian professional investors. ASIC decided against giving relief for situations of reverse…

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Australian regulators weekly wrap Monday 15 July 2019

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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Australian regulators weekly wrap Monday 1 July 2019

Responsible lending:following ASICs release of itsconsultation paperin February 2019 in respect of updating its guidance on responsible lending (RG 209), ASIC announced that it intends to hold public hearings concerned with responsible lending practices (a prominent theme in the recent Hayne Royal Commission)…

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