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 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

Impending changes to fee disclosure transitional provisions

ASIC has (again) flagged that it will be amending the transitional arrangements in the ASIC Corporations (Disclosure of Fees and Costs) Instrument 2019/1070 (Instrument) on its superannuation fund COVID-19 FAQ page: ASIC will be amending the transitional arrangements for Product Disclosure Statements (PDSs) shortly to allow entities to come into the new disclosure regime from … Read more

ASIC consults on draft regulatory guide for design and distribution obligations

By Fiona Smedley and David Curley   ASIC has released Consultation Paper 325 Product design and distribution obligations (CP 325), on its proposals for guidance on the design and distribution obligations in Pt 7.8A of the Corporations Act 2001 (Cth) (DDO). ASIC is seeking public input on CP 325 by 11 March 2020 with a view to releasing … Read more

Where are we up to again? Insurance regulation over the horizon

By Philip Hopley The Australian regulatory financial services sector has certainly been giving props to Greek philosophy of late with its channelling of Heraclitus’ statement that “there is nothing permanent except change.” Now that the dedicated insurance hearings at the Royal Commission have finished, here is a snapshot of the current legislative and regulatory plans for … Read more

Financial product design & intervention powers – updated draft legislation released

By Philip Hopley The federal government has just released for public consultation a second exposure draft of the legislation that will introduce financial product design and distribution obligations into the Corporations Act and give ASIC new enforcement powers, which includes the issuing of stop orders. Having considered the submissions provided on the first draft of exposure legislation … Read more