EHF in Focus: Dissecting the efficiently, honestly and fairly obligation with a governance lens

This article addresses the integration of the efficiently, honestly and fairly (EHF) obligation into the risk assessment and breach reporting frameworks of financial institutions that hold an AFSL. Central to this exercise is the integration of the EHF obligation into operational processes, procedures, decision-making and, last but not least, organisational culture. The role of fairness … Read more

FSR GPS: The best financial interests duty – super complex or super solution?

This edition of our ‘FSR GPS’ (Guidelines, Principles and Strategies) series provides some insights and practical guidance on the new ‘best financial interests duty’ that applies to superannuation trustees. This duty has been inserted into section 52(2)(c) of the Superannuation Industry (Supervision) Act 1993 (Cth) (SIS Act), amending the previous best interests duty. Is the … Read more

FSR GPS: ‘BECOMING AWARE’ OF A SIGNIFICANT DEALING UNDER DDO

This edition of our ‘FSR GPS’ (Guidelines, Principles and Strategies) series provides some insights on the requirement to report significant dealings to ASIC under the upcoming DDO regime, which is due to come into effect on 5 October 2021. Under the DDO regime, a product issuer has an obligation to report a ‘significant dealing’ to … Read more

Draft Financial Accountability Regime legislation released for comment

On 16 July, Treasury released Exposure Draft legislation for the Financial Accountability Regime (FAR)(FAR Bill). While the FAR Bill has some similarities to the Banking Executive Accountability Regime (BEAR) in the Banking Act 1959 (Cth), there are some provisions of the FAR Bill which differ to BEAR and which raise concerns about over-regulation and uncertainty. … Read more

LIF commissions under review in 2021-2022

The Final Report of the Financial Services Royal Commission called for a follow-up review into the ethics and standards in the financial services sector. In response to this, on 21 April 2021 at the FSC Life Insurance Summit, Financial Services Minister Jane Hume announced that the Government will commission a review of the financial advice … Read more

Regulator guidance the latest development in countdown to Australia’s breach reporting reforms

In December last year we wrote of the sweeping changes to Australia’s breach reporting regime that had been passed into legislation by Federal Parliament and would have significant implications for Australian financial services and credit licensees (AFS Licensees and Credit Licensees respectively). We summarised the key changes and highlighted issues for licensees to look out for in preparing for the regime … Read more