THE BREACH REPORTING CHASM

On 27 October 2022, ASIC released its first publication of information lodged under the new breach reporting regime, Report 740 Insights from the reportable situations regime: October 2021 to June 2022 (Report 740). As readers will be aware, the new breach reporting regime for financial services came into effect on 1 October 2021, seeking to … Read more

Good Advice in Superannuation – The Elephant in the Room

The Quality of Advice Review contains some very sensible recommendations with respect to financial advice in the superannuation fund setting. Nonetheless, section 3.2 of the Proposals Paper raises the issue of the possible expansion of the concept of intra-fund advice. The following quote is instructive: “Most (although not all) superannuation fund trustees have told us … Read more

Keeping up with the finfluencers: Why it’s not what you say but who you are

The recent charges imposed on a (very) famous influencer in the US by the US Securities and Exchange Commission is informative to the current discussion and debate in Australia regarding the Quality of Advice Review. The charges (which were ultimately settled for a sum of $1.26 million and a 3-year embargo on promoting crypto asset … Read more

The Good Advice Duty: The Animals Remix or Back to the Future?

One of the very memorable catch phrases from the Animals’ song repertoire goes along the lines of “Oh Lord, please don’t let me be misunderstood.” These words could be applied, respectfully, to the proposed “Good Advice” duty – specifically, the central pivot which links “good advice” to the test of whether the advice would be … Read more

Quality of Advice Review: HSF makes submission on financial advice reform

In August 2022, the Quality of Advice Review released its Proposals Paper setting out a range of proposals to improve the accessibility and affordability of financial advice. Our team has made a formal submission to the Quality of Advice Review. While we strongly support the majority of the proposals outlined in the Proposals Paper, there are … Read more

Anti-hawking in financial services: Some observations on multi-product discounts

For some time now, the issue of whether a sales representative can cross-position different insurance policies or financial products through the mechanism of a multi-policy or multi-product discount has been somewhat of a vexed issue – to say the least. In this context, we are referring to a scenario where a client makes an enquiry … Read more

Financial services in the social media age: The rise and risks of ‘finfluencers’

During the COVID-19 pandemic, a record number of first-time traders flocked to the market, which propelled financial influencers (‘finfluencers’) into ASIC’s spotlight and squarely placed them within ASIC’s enforcement remit. The rise of finfluencers is unsurprising in the social media and digital age. As financial services and financial product distribution become more challenging and complex … Read more