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

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

FSR GPS: Anti-hawking reforms for financial products

This edition of our ‘FSR GPS’ (Guidelines, Principles and Strategies) series covers the upcoming changes to the anti-hawking regime for financial products in the Corporations Act, with the new regime coming into effect on 5 October 2021. In this article, we outline: our 12 legal principles which go to the heart of the new anti-hawking … Read more

Operational resilience in financial services regulation

Operational resilience is the next phase in the evolution of financial services regulatory policy. We approach this resilience at a conceptual level, identifying 5 elements which make up a holistic operational resilience framework: Financial resilience – capital, liquidity, prudence; People resilience – governance, accountability, culture; Structural resilience – clarity of operational and legal structures; Regulatory … Read more

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

FSR GPS: Don’t wear ‘two hats’ in superannuation

This edition of our ‘FSR GPS’ (Guidelines, Principles and Strategies) series covers proposed laws recently tabled before Parliament to impose a statutory condition (Condition) on RSE licensees to have ‘no other duty to act in the interests of another person’ other than a duty that arises in the course of: acting as an RSE licensee; … Read more