“In relation to” a financial service: Federal Court reaffirms wide angle lens

The Federal Court has recently reaffirmed that the phrase “in relation to” a financial service is necessarily of wide import. In this context, it is timely to reiterate the practical consequences of this broad interpretation in the context of financial services. “in relation to” In Australian Securities and Investments Commission v Hutchison [2020] FCA 978, … Read more

The landscape on general and personal advice

Written by Michael Vrisakis, Hartley Spring, Shan Verne-Liew and Nathan Hauser Introduction This month we expect to read the written submission filed by ASIC in respect of the High Court case of Westpac Securities Administration Limited v ASIC (High Court of Australia, S29/2020, commenced 7 May 2020). The case concerns whether certain call centre scripts contained general … Read more

Regulatory “Rinkles” – Spotlight on Transitional Issues for Grandfathered Conflicted Remuneration

This edition of Regulatory Rinkles follows on from our previous edition on Spotlight on Conflicted Remuneration and focuses on the transitional issues facing product issuers and advice licensees who are looking to end or deal with their existing grandfathered arrangements before the grandfathering exemption is removed from 1 January 2021. LEGISLATIVE BACKGROUND – THE END … Read more

Spotlight on Regulatory Risk in Financial Services

This edition of our FSR Australia Notes focuses on the concept and dimensions of regulatory risk. We see this as an increasingly important area of financial services regulation, as following the Financial Services Royal Commission, a financial institution’s relationship with the regulators is particularly paramount. There are many factors underpinning this observation, including the more … Read more

Regulatory “Rinkles”: Spotlight on conflicted remuneration

This edition of Regulatory Rinkles focuses on certain aspects of the conflicted remuneration regime under Part 7.7A of the Corporations Act 2001 (Cth) (Act), which are often ill understood. This focus is timely following the Royal Commission and the proposed end of the grandfathering regime. While the grandfathering of conflicted remuneration is coming to an … Read more

ASIC spotlight on client money

In the wake of ASIC’s recent announcement on enforcement in this area, we thought that it would be timely to set out: some key points about how the client money provisions operate, particularly with respect to application money; the pitfalls to look out for; and how some of the more technical provisions interact with each … Read more

ASIC continues its focus on advertising and disclosure

Yesterday, ASIC provided an update on its surveillance activity on advertising and disclosure by investment funds, emphasising the importance of investment fund disclosure not being misleading and adequately addressing risk. It is important for licensees to bear in mind that the stance and views taken by ASIC can be applied equally to other products, such … Read more

ASIC’s 2020/21 timetable released

Today, ASIC published its Interim Corporate Plan for the 2020–2021 financial year and an updated timetable of its ongoing work up to the second quarter of 2021. Key dates with respect to legal and regulatory reform in the financial and credit services industries are set out in the table below: Project Indicative timing Product intervention … Read more