Financial Accountability Regime – OCC, not ‘OTT’

In this article, we address a cryptic pillar of the current Banking Executive Accountability Regime (BEAR) and the proposed Financial Accountability Regime (FAR): the obligation to deal with APRA and ASIC in an open, constructive and cooperative way. What would this obligation require? What would it not require? How can we prepare for it? In … Read more

Remediation Round-Up: Superannuation

This article is a part of our Remediation Round-Up series which explores potential issues for financial services licensees when conducting remediation and ways to optimise the design of remediation programs. Key points ASIC is expected to obtain a joint mandate with APRA to regulate the operation of superannuation funds. Once this mandate is introduced, we … Read more

FSR GPS: Efficiently, honestly and fairly in practice (Part II)

Our “FSR GPS” (Guidelines, Principles and Strategies) series is designed to assist financial institutions navigate often complex and sometimes opaque or ambiguous legal provisions, with a view to assisting institutions formulate practical and strategic legal and business solutions. This edition aims to provides further practical guidance to in-house lawyers and businesses on how to navigate … Read more

Remediation Round-Up – Who is the proper payee?

Background This edition of HSF FSR Australia Notes is the first in our series dealing with legal remediation issues arising from exercises undertaken post Royal Commission. In this edition, as the title indicates, we examine the topical issue of where compensation payments should be made in a situation where multiple parties have been involved in … Read more

“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

Best interests duty when selling specific financial products

Written by Michael Vrisakis General issue The issue has been raised as to if and how advisers can satisfy the best interests duty (BID) when selling annuity products, particularly in a low interest rate environment and in the context of intra-fund advice. As noted below, the general issue here is the extent to which selling single … Read more