Market Integrity Rules Update: New Technological and Operational Resilience Rules to apply from 10 March 2023
Australia’s financial markets have become increasingly digitised and automated, such that the technological and operational risks faced by market operators and participants have simultaneously increased. This is not to mention that failures in this area, as seen for example in connection with the November 2020 ASX outage, ‘can have significant real-world consequences’[1]. As a result […]
Readmore22-316MR ASIC suspends FTX Australia’s AFS licence
On 16 November 2022, the Australian Securities and Investment Commission (ASIC) suspended the Australian Financial Services (AFS) licences of FTX Express Pty Ltd (ACN 657 907 894) and FTX Australia Pty Ltd (ACN 129 217 812) (together, FTX Australia) until 15 May 2023. This was as a result of FTX Australia being placed into voluntary […]
Readmore22-349MR ASIC’S Enforcement and Regulatory Update July to September 2022
On 12 December 2022, ASIC released its updated quarterly report (REP 753) that outlined its key actions undertaken over the previous quarter. This report focused on ASIC enforcement and regulatory actions that covered the following sectors: insurance, credit, superannuation, financial advice, managed investments, markets and auditing. ASIC also highlighted its upcoming internal and external priorities. […]
ReadmoreASIC updates its guidance on SMSF advice
By the end of 2022, ASIC had undertaken an internal review of its Self-Managed Superannuation Funds (SMSF) information sheets in line with key strategic priorities stated in ASIC’s Corporate Plan for 2022-2026 (see ASIC’s Corporate Plan 2022-26). One of ASIC’s aims is to protect and help consumers as they plan for their future retirement. Consumers […]
ReadmoreASIC issues more infringement notices for greenwashing
An important issue that ASIC is currently facing is the deterrence of greenwashing practices across the Australian business landscape. According to ASIC, greenwashing is ‘the practice of misrepresenting the extent to which a financial product or investment strategy is environmentally friendly, sustainable or ethical’. ASIC’s position is that the practice of greenwashing distorts relevant information […]
ReadmoreASIC is coming for your responsible managers
A key obligation of an AFSL holder is to maintain the competence to provide the financial services covered by its licence.[1] ASIC refers to this obligation as the “organisational competence obligation.” In order to comply with this obligation, Regulatory Guide 105: Licensing: Organisational competence (RG 105) provides that the licence holder must nominate Responsible Managers […]
ReadmoreBuy Now Pay Later Options Paper: The reforms start to take shape
On 21 November 2022, the Buy Now Pay Later (BNPL) options paper was released by Treasury for public consultation (Options Paper). The Options Paper examines the regulatory challenges of emerging financial products, particularly BNPL, and the appropriate regulatory approach to maintain the advantages of accessing credit while sufficiently protecting consumers. With the closing date for […]
ReadmoreAPRA’s letter on the review of the prudential framework for groups
On Monday 24 October 2022, John Lonsdale, the APRA Deputy Chair, issued a letter to all APRA-regulated entities outlining a roadmap for the review of the prudential framework for groups. The letter supports APRA’s recent paper regarding modernising the prudential architecture, which was published on 12 September 2022. The aim of APRA’s review is to […]
ReadmoreInsights learnt from APRA’s Risk Culture Survey
On 10 November 2022, APRA released the results from their most recent risk culture survey. The survey was provided to 18 authorised deposit-taking institutions (ADIs) between October and December 2021. The 18 ADIs comprised the five largest banks (Major ADIs) and 13 smaller entities, consisting of regional banks, foreign bank subsidiaries/branches, mutual banks, credit unions […]
ReadmoreAPRA releases amendments to capital framework for ADIs
In November 2021, APRA released final prudential standards and guidance that accompany the ADI capital reforms, together with final prudential practice guides in July 2022. In the July 2022 release, APRA consulted on two proposals put forward for consequential amendments to be made to the capital frameworks. The proposals were encouraged to ensure consistency with […]
ReadmoreAPRA to strengthen transfer planning in superannuation
On 10 November 2022, APRA released a discussion paper seeking consultation on strengthening superannuation trustee planning in successor fund transfers (SFTs) (Discussion Paper). The superannuation industry has seen a recent spate of SFTs. By way of example, QSuper and Sunsuper merged in February earlier this year to create the Australian Retirement Trust. LGIAsuper and Energy […]
ReadmoreASIC publishes ‘Report 740: Insights from the Reportable Situations Regime: October 2021 to June 2022’
On 27 October 2022, ASIC released its first publication pertaining to information lodged under the reportable situations regime (formerly known as ‘breach reporting’). By way of background, the reportable situations regime commenced on 1 October 2021. The regime’s purpose was to strengthen the obligations of Australian Financial Services (AFS) licensees and to extend this obligation […]
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