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…
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transaction reports when a customer conducts multiple cash transactions, following industry consultation on the draft guidance released in November 2021.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…
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…
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…
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…
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…
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…
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…
Product intervention power (ASIC):following its first victory against Cigno Pty Ltd (which is now subject to appeal),ASIC is doubling down against the Gold Coast payday lender and has releasedConsultation Paper 330(CP 330) on the proposed use of its product intervention power to address significant detriment…
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…
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…
APRA capability report:Graeme Samuels external review of APRA was released and contained some sharp observations, the sum of which was that APRAs internal culture and regulatory approach need to change (and it needed to have a more forceful supervision and enforcement approach)…
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…
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…
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)…