12 days of compliance

On the 12th day of compliance my risk team gave to me…

12. Twelve months work on creating a new class of financial adviser

The Albanese Government has announced details of the second tranche of Delivering Better Financial Outcomes package reforms, including creation of a new class of adviser. While new advisers will be restricted to providing advice on insurance and basic superannuation issues, the government contends that most Australians would benefit from easier access to affordable information on these matters.

11. Eleven general insurers with poor complaints handling procedures

Insurers are failing to identify one in six customer complaints, effectively denying those Australians critical protections available through the Internal Dispute Resolution regime, ASIC REP 802 Cause for complaint has found.

10.Ten financial marketing principles

ASIC’s RG 234 Advertising financial products and services (including credit) continues to be a definitive source of guidance for promoters of financial products and services regarding their legal obligations not to make false or misleading statements or engage in misleading or deceptive conduct.

9. An adventurous 9 year journey to implement the Retirement Income Covenant

The Retirement Income Covenant may have taken effect from 1 July 2022 but this initiative, designed to encourage super funds to improve outcomes for their members in retirement, had an initial target implementation date of 1 July 2013. Funds are expected to complete the first triennial review of their retirement income strategy by mid-2025.

8. ASIC issuance of over 80 DDO interim stop orders

Recently updated, RG 274 Product design and distribution obligations remains essential reading for issuers and distributors of financial and credit products and services. Since enforcement commenced on 5 October 2021, ASIC has issued over 80 stop orders, almost half of which were imposed during the last year alone.

7. Seven Privacy law reforms

The Office of the Australian Information Commissioner (OAIC) has welcomed the passing of the Privacy and Other Legislation Amendment Bill 2024 as a significant step forward in advancing privacy protections for the Australian community.

6. Six months until buy now pay later is regulated as a consumer credit product

Following the passing of laws to regulate Buy Now Pay Later services as credit products, affected lenders will have up to 6 months from when the Bill receives Royal Assent to comply. When the Bill was introduced into Federal Parliament in June 2024, Financial Services Minister Stephen Jones said the changes were proportionate and got the balance right between putting strong consumer protections in place and maintaining benefits afforded to consumers by being able to access BNPL products.

5. Bitcoin’s 100K (and further digital asset regulation is coming)

Loud cheers when Bitcoin breached the USD 100,000 barrier were temporarily muted by ASIC releasing Consultation Paper CP 381 in relation to update of INFO 225: Digital assets: Financial products and services. Industry welcomes progress on clearer regulation of the sector.

4. Four focus areas for reportable situations compliance

Following its review of the compliance arrangements of 14 licensees of different sectors and sizes who had low numbers of reportable situations or had not reported at all, ASIC has revealed what licensees should do to better find, fix and report breaches.

3. Three cyber security law amendments

The Cyber Security Legislative Package 2024 has implemented seven initiatives under the 2023-2030 Australian Cyber Security Strategy across three Bills, with notable measures including the mandating of minimum cyber security standards for smart devices and introducing obligations on certain businesses to report ransomware and cyber extortion payments.

2. Two major changes to Australia’s AML/CTF regime

From 31 March 2026, new services and entities will begin coming under AUSTRAC regulation following reforms to anti-money laundering and counter-terrorism financing (AML/CTF) laws. The reformed laws also impact current reporting entities. The AUSTRAC website has a new page of key information to assist affected entities and offer guidance of what they can do to prepare.

1. And a modern, innovation-friendly financial services regulatory regime.

We can all celebrate that; now, go forth and prosper!