State of play: ASIC releases draft updated remediation guidance

On 17 November 2021, ASIC released draft updated guidance on consumer remediation for all AFS licensees, Australian credit licensees and retirement savings account providers. The draft guidance is attached to Consultation Paper 350 Consumer remediation: Further consultation (CP 350). This article considers the key features of the draft guidance with a particular focus on significant … Read more

An old friend or foe? ASIC updates court enforceable undertaking guidance

In this article, we look at how ASIC is reacquainting itself with one of the oldest tools in its enforcement toolkit: the court enforceable undertaking (CEU). ASIC’s new Chair Joe Longo has long signalled since commencing with the regulator in June that the “why not litigate?” enforcement mantra of predecessor James Shipton is a thing … Read more

FAR MOVING FORWARD: WHAT’S NEW AND WHAT NEXT?

The Financial Accountability Regime Bill 2021 (FAR Bill) was introduced in the House of Representatives on 28 October 2021. This legislation will replace and extend the Banking Executive Accountability Regime (BEAR) (which currently only applies to authorised deposit-taking institutions (ADIs)) to all APRA-regulated entities – with some key changes, including: the Financial Accountability Regime (FAR) … Read more

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