Consumer Data Right – The Rules Framework is out

Written by Amy Ciolek and Kiara Salvia

On 12 September 2018, the Australian Competition and Consumer Commission (ACCC) released for public consultation the Consumer Data Right (CDR) Rules Framework (Rules Framework) following the release of the exposure draft Treasury Laws Amendment (Consumer Data Right) Bill 2018 (the Bill) which proposes amendments to the Competition and Consumer Act 2010 (Cth), the Australian Information Commissioner Act 2010 (Cth), and the Privacy Act 1988 (Cth). Continue reading

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Filed under Banking, Privacy & Open Banking

Consumers to Receive Data Rights

Written by Lisa Whiting 

Consumers are set to receive certain rights in relation to personal data held about them. These rights are provided for under exposure draft legislation released by Treasury. Submissions on the draft are due by 7 September 2018. Continue reading

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Filed under Banking, Open banking

The new (digital) banks on the block

Written by Nicola Greenberg

Australians are familiar with the concept of “non-banks”, and have even seen an example of a “beta bank” (U-Bank).  Other forms of “challenger” banks, such as neobanks and new banks have been absent from the Australian landscape until more recently. Continue reading

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Filed under Australia, Banking

The evolving role of the financial services regulator

Written by Amy Ciolek and Nicola Greenberg

As community expectations and the nature of crime changes, 
so too does the role of the regulator.

The ABC news reports today that “for the first time, the Australian Securities and Investments Commission will have enhanced powers to place dedicated staff within the big four banks and wealth manager AMP to directly monitor governance and compliance and fight white-collar crime.” Continue reading

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Filed under Banking, Regulation & Remediation

Mixers, cold storage and onions…cocktail party or digital money laundering?

By Amy Ciolek and Julia Massarin

With terminology such as mixers, cold storage, tumblers and Onions 
(Onion Routers) (TOR), one may be excused for overlooking the 
significance of money laundering the digital age. 

FATF Report to G20 Finance Ministers and Central Bank Governors

In July 2018, the Financial Action Task Force (FATF) published its report to the G20 Ministers and Central Bank Governors on digital currency, which reports that:

  • the link between virtual currencies/crypto-assets and other predicate crimes appears to be growing;
  • countries have regulated crypto in various ways, from implementing a blanket ban against dealing, use, issue and settling, to regulating crypto exchanges; and
  • FATF will review its 2015 guidance about crypto currency, and will meet again in September 2018 to discuss crypto related money laundering in more detail.

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Filed under AML/CTF & Sanctions, Banking, Digital Currency, Financial Services Regulation, ICO, Uncategorized

The Trustee’s Role is to Administer a Fund

The Court of Appeal has emphatically confirmed that “the function of the trustees is to manage and administer the scheme; not to design it” in a recent judgement handed down in the UK.

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Filed under Superannuation

Financial product design & intervention powers – updated draft legislation released

Written 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 that was published last year, the government’s updated draft legislation contains a number of qualifications, clarifications and enhancements to the proposed product design and distribution regime. This includes extending the transitional period from one to two years.

For those wanting a snapshot of what has changed there is a helpful Information Note. A more detailed comparison between the current and proposed laws can be found at page 7 of the Explanatory Memorandum. More committed readers can access the full updated draft bill here.

This consultation is open for comments until Wednesday, 15 August 2018.  Details of how to do so are here.

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Filed under ASIC Guidance, Financial Products & Advice, Financial Services Regulation, Life Insurance, Regulation & Remediation, Superannuation

When utmost good faith is not good enough

Written by Philip Hopley

There is just over a month left for stakeholders to provide views on a proposed model that will implement the government’s policy to apply unfair contract terms legislation to life and general insurance contracts for consumers and small businesses. To find out more, click here.

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Filed under Australia, Financial Products & Advice, Financial Services Regulation, Life Insurance

Contrasting Regulatory Approaches to FinTech

Written by Amy Ciolek, Nicola Greenberg and Kishaya Delaney

Various crypto news sites are publishing that the UK’s Financial Conduct Authority (FCA) has accepted 11 blockchain-based financial service providers into its recent (4th) SandBox cohort.  This includes startups testing cryptoasset offerings.  The FCA has stated: “We are keen to explore whether, in a controlled environment, consumer benefits can be delivered while effectively managing the associated risks”.  Continue reading

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Filed under ASIC Guidance, Australia, Banking, Digital Currency, Financial Services Regulation, Fintech, ICO

Cyborg Advice

Written by the one and only Michael Vrisakis

Yesterday’s Financial Review contained an article by James Eyers (page 22) which touched on what we will call “Cyborg Advice”; that is hybrid advice involving man and machine.

The article notes that developments such as open banking and broader “customer data rights” are likely to push advice to be focused on the specific and not the general. Continue reading

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Filed under ASIC Guidance, Financial Products & Advice, Privacy & Open Banking