ASIC 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 […]
ReadmoreBTI 2014 LLC v Sequana SA and Others: United Kingdom Supreme Court relies on Australian case law to settle question on Director’s duties
In BTI 2014 LLC v Sequana SA and Others, the United Kingdom Supreme Court considered a case on appeal which asked the Court to expand the common law duty of directors in a significant way. The Appellant sought to argue that common law director duties should require directors to have regard to the interests of […]
ReadmoreBlock trading breach! ASIC’s Markets Disciplinary Panel hands down $222,000 penalty to ABN AMRO
On 7 September 2022, ASIC announced that its Markets Disciplinary Panel (MDP) had issued an Infringement Notice having determined that it had reasonable grounds to believe that ABN AMRO Clearing Sydney Pty Ltd (ABN AMRO) contravened subsection 798H(1) of the Corporations Act by failing to comply with Rule 3.4.2(1) of the ASIC Market Integrity Rules […]
ReadmoreSanderson, in the matter of Jabaluka Pty Ltd (in liq) [2022] FCA 1012: Federal Court considers application for appointment of receiver of a corporate trust
Jabaluka Pty Ltd (Jabaluka) was the Trustee of the Morgan Unit Trust, which operated an IGA Supermarket (the Supermarket) from 22 September 2010 to 13 March 2020. This case concerned an application by the Liquidator of Jabaluka (the Liquidator) under s 57 of the Federal Court of Australia Act 1976 (Cth) for an order that […]
ReadmoreMortgagee in possession sale causes Manda-monium – a tale of section 420A obligations in the COVID-19 era
In the first reported final decision that has considered the effect of COVID-19 lockdowns on the property market in the context of a mortgagee discharging its duties under section 420A of the Corporations Act 2001 (Cth) (Act), the Victorian Supreme Court in Manda Capital Holdings Pty Ltd (Manda) v PEC Portfolio Springvale Pty Ltd (PEC) […]
ReadmoreCorruption and Integrity Update – December 2022
This month’s Corruption and Integrity update includes an overview of the final report from the Forensic DNA Commission of Inquiry; highlights the recent decision of the Attorney-General to abolish the Administrative Appeals Tribunal; details the Australian Commission for Law Enforcement Integrity (ACLEI) 2021-22 Vulnerabilities Brief; notes the recent decision of the High Court to grant […]
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 […]
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