Buy Now Pay Later: Industry awaiting Issues Paper with bated breath
For better or worse, the Buy Now Pay Later (BNPL) industry has continued to make headlines since our last report. The sector’s meteoric rise has been tempered in recent months by a combination of market saturation, broader macroeconomic factors, and, most recently, a new political climate. The new Labor Government has made clear its intentions […]
ReadmoreUnderstanding Big Brother ASIC: Exemptions from holding an AFS licence
Control of the present Organisations are facing continual changes to their regulatory requirements. So, understanding the change is essential to avoid costly fines, reputational damage, or even a loss of the right to operate. If you’re reading this article, you might be interested in whether you need to hold an Australian Financial Services Licence (AFSL) […]
ReadmoreUpdated guidance for corporate collective investment vehicles
On 23 June 2022, the Australian Securities and Investments Commission (ASIC) released a range of documents relevant to the commencement of the corporate collective investment vehicles (CCIVs) regime on 1 July 2022. The packet of material includes updates to key licensing guidance (Regulatory Guides 1, 2, and 3), general obligations under an Australian financial services […]
ReadmoreWaiting for the drop: Crypto legislation is leaked in the US as Australia grapples with its regulation
While most of the world’s regulators are still putting pen to paper, the early glimpse into the United States of America (US)’s possible crypto-regulatory future has given us much to digest. The US often leads global financial regulation on a leash. In an area as contentious and topical as crypto regulation, will Australia follow suit? […]
ReadmoreReminder and ASIC practical guidance regarding important amendments that apply to financial advisors and clients regarding their ongoing fee arrangement obligations
The obligation to give clients a fee disclosure statement (FDS) annually where there is an ongoing fee arrangement has applied since 1 July 2012. From 1 July 2021, two broad additional obligations have applied between both advisors and clients where there is an ongoing fee arrangement (OFA) in place. These additional obligations were introduced by […]
ReadmoreWho has the match? Anti-money laundering and cryptocurrency
Combining Anti-Money Laundering (AML) considerations with cryptocurrency technology is akin to adding gasoline to a bonfire. It is a hot topic on the mind of every member of the global financial services industry. How are we to regulate and manage a new technology that seems to feed into the hands of money launderers? As AUSTRAC […]
ReadmoreHow can insurance providers stay ahead of the implementation of CDR in 2022?
Consumer Data Right presents new legal risks and challenges for insurers. Consumer Data Right (CDR) gives a consumer more control over their information, enabling them to access and share their data with accredited third parties to obtain better deals on everyday products and services. The Australian Government sees the CDR as central to driving competition […]
ReadmoreFederal Court finds RI Advice failed to adequately manage cybersecurity risks
In the landmark decision of Australian Securities and Investments Commission v RI Advice Group Pty Ltd (RI Advice) [2022] FCA 496, the Federal Court found that Australian Financial Services licensee, RI Advice, breached its license obligations to act efficiently and fairly when it failed to have adequate risk management systems to manage its cybersecurity risks. […]
ReadmoreDisclosure obligations for financial service providers in NSW: One-year on from reforms to the Fair Trading Act 1987 (NSW)
It has been over a year since reforms were introduced under the Fair Trading Act 1987 (NSW) (the Act) requiring suppliers (including of financial services) to take reasonable steps to disclose to their customers prejudicial contract terms and for intermediaries to disclose the arrangement under which they are acting, including referral commissions. The disclosure requirements […]
ReadmoreUnconscionable conduct in asset based lending: Stubbings v Jams 2 Pty Ltd [2022] HCA 6
Recently, the High Court of Australia found unconscionable conduct on the part of a lender on an asset based loan and held that the lender could not rely on the certificates of independent legal and financial advice procured from the borrower to immunise the transaction against unconscionable conduct laws. The loan was made to a […]
ReadmoreNotesco Pty Ltd v Australian Financial Complaints Authority Ltd [2022] NSWC 285
In Notesco Pty Ltd v Australian Financial Complaints Authority Ltd [2022] NSWC 285, the Supreme Court of NSW considered the validity of a Determination made by AFCA requiring Notesco Pty Ltd (Notesco) to pay compensation to an elderly resident of France who lost his life savings trading in CFDs (via a third party broker) on […]
ReadmoreThe digital frontier – staying ahead of the crypto curve
We are in an era that many are now describing as the ‘digital frontier’ – where visions of decentralised financial systems (DeFi) and decentralised autonomous organisations (DAOs) run abound with an endgame that intends to shake up the way traditional finance is offered to consumers. On 21 March 2022 the Treasury released its consultation paper […]
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