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.

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.

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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