Regulatory updates and industry trends
27 October 2020
The Australian Prudential Regulation Authority (APRA) has published Chair Wayne Byres’ Opening Statement to the Senate Economics Legislation Committee. A copy of Mr Byres’ statement is available on the APRA website at: Opening Statement to Senate Economics Legislation Committee – October 2020.
22 October 2020
ASIC has made a product intervention order imposing conditions on the issue and distribution of contracts for difference (CFDs) to retail clients. ASIC’s order strengthens consumer protections by reducing CFD leverage available to retail clients and by targeting CFD product features and sales practices that amplify retail clients’ CFD losses. It also brings Australian practice into line with protections in force in comparable markets elsewhere.
APRA takes action against Bendigo and Adelaide Bank for breaching prudential standard on liquidity
The Australian Prudential Regulation Authority (APRA) has increased Bendigo and Adelaide Bank’s minimum liquidity requirement for failing to comply with APRA’s authorised deposit-taking institution (ADI) prudential standard on liquidity. The breaches, while material, do not impact the overall soundness of Bendigo and Adelaide Bank’s current liquidity position. However, they raise questions over the bank’s past risk management practices, and ability to accurately calculate and report its liquidity ratios.. “In taking these actions, our priority is to ensure the underlying causes of the compliance failures are properly identified and addressed. It also sends a message to the wider banking industry that such breaches of our prudential standards are not acceptable, and APRA will respond in a commensurate manner, including applying penalties where appropriate.” For more information on liquidity in banking, see: apra.gov.au/apra-explains-liquidity-banking
In preparation for the unfair contract term protections applying to insurance contracts, ASIC is undertaking targeted supervisory work with industry.
The focus of ASIC’s supervisory work is on:
- terms that allow an insurer to cash settle a claim based on the cost of repair to the insurer
- terms that are an unnecessary barrier to a consumer lodging a claim
- terms that reduce the cover offered where compliance with the preconditions is unfeasible; and
- terms that use an outdated, and therefore inaccurate or restrictive, medical definition.
NAB ordered to pay $15 million for dealing with unlicensed home loan Introducers: Royal Commission case study
The Federal Court of Australia has today ordered National Australia Bank (NAB) pay a civil penalty in the amount of $15 million for contravening section 31(1) of the National Credit Act. ASIC’s investigation uncovered that NAB bankers overstepped the ‘spot and refer’ requirement by accepting information and documentation from the 25 unlicensed Introducers, including completed home loan applications, payslips, copies of customer identification documents and more.
16 October 2020
ASIC has written to insurers, Lloyd’s coverholders and brokers about handling business interruption insurance claims arising from the COVID-19 pandemic.
The letter outlines:
- ASIC’s work in relation to business interruption insurance policies held by small businesses
- how general insurers, Lloyd’s coverholders and brokers should approach handling claims on these policies in light of COVID-19.
6 October 2020
The Australian Prudential Regulation Authority (APRA) has announced that it is commencing the roll-out of a new model for assessing the risks faced by banks, insurers and superannuation licensees. Copies of the letter, SRI Model Guide and revised supervision philosophy are available at: Transition to APRA’s new Supervision Risk and Intensity (SRI) Model.
The biggest reforms to consumer credit regulation in a decade loom, with ASIC set to be stripped of some of its responsible lending powers.
Key elements of the reforms include:
- Removing most responsible lending obligations from the National Credit Act
- Introducing heightened obligations for small amount credit contracts (SACCs) and consumer leases
- Ensuring that authorised deposit-taking institutions (ADIs) will continue to comply with APRA’s lending standards
- Applying key elements of APRA’s ADI lending standards to non-ADIs.
- Requiring debt management firms to hold an Australian Credit Licence when they are paid to represent consumers in disputes with financial institutions
- Removing the ambiguity regarding the application of consumer lending laws to small business lending.
A cornerstone of the reforms is replacing the current practice of ‘lender beware’ with a ‘borrower responsibility’ principle.
In announcing the changes, the government argued that current regulatory guidance was too prescriptive, making the credit application process an undesirably burdensome experience for lenders and borrowers alike. Subject to the passing of legislation, the reforms will commence from 1 March 2021.
Westpac Group has been hit with a record fine in relation to the 23 million breaches of anti-money laundering and terrorism laws AUSTRAC took the major bank to court over late last year.
In reaching the agreement, Westpac also admitted to approximately 76,000 additional contraventions, which expand the original statement of claim.
While acknowledging the collaborative way the financial crime agency works with businesses, AUSTRAC CEO, Nicole Rose PSM, urged regulated entities to ensure that their assurance and oversight processes adequately supported them to:
- meet their compliance and reporting obligations; and
- facilitate such breaches not happening again in the future.
The Federal Court will now determine if the proposed $1.3 billion penalty is appropriate. If approved, the penalty order made will represent the largest ever civil penalty in Australian history, dwarfing the $700 million fine the Commonwealth Bank paid in 2018 after AUSTRAC found it had failed to report on 53,500 transactions.
Following industry engagement and consultation, the government has released the final Regulations and Explanatory Statement for mortgage brokers focusing on the new clawback requirements and conflicted remuneration.
The Financial Sector Reform (Hayne Royal Commission Response – Protecting Consumers) (Mortgage Brokers) Regulations 2020 build on the draft regulations. While several changes were made regarding remuneration, material changes to the draft clawback provisions were not included.
With respect to clawback provisions, the regulations:
- ban clawback arrangements if they apply for more than two years from the beginning of the credit contract
- specify that the repayment obligation “must not require repayment of an amount greater than the benefit given to the licensee or representative”
- emphasise that “the consumer must not be subject to an obligation to pay an amount as a result of an amount being required to be repaid under the repayment obligation”.
You can view the detail of the Regulations and Explanatory Statement on the Federal Register of Legislation.
The Australian Prudential Regulation Authority (APRA) has issued a letter to authorised deposit-taking institutions (ADIs) following a review of ADIs’ comprehensive plans for the assessment and management of loans with repayment deferrals.
The letter is available on the APRA website at: Review of treatment of loans impacted by COVID-19.
A recent ASIC surveillance has found that fund managers must do more to ensure their products are ‘true to label’ – that the product name aligns with the underlying assets.
ASIC has issued Report 668 Allocations in debt capital market transactions (REP 668), outlining findings from ASIC’s surveillance of market practices in debt capital market (DCM) transactions and sets out better practice guidelines, including ASIC’s expectations that Australian Financial Service (AFS) licensees. ASIC’s report follows the 21 September 2020 release of the Final report on Conflicts of interest and associated conduct risks during the debt capital raising process (IOSCO Report) by the Board of the International Organization of Securities Commissions (IOSCO).
ASIC is reminding advertisers of financial services and products that compliance with legal obligations, specifically the prohibition of false or misleading representations, is paramount during this time of uncertainty.
Armed with a mix of traditional and innovative regtech monitoring tools, the corporate regulator is monitoring advertising of a wide range of products and services across a broad range of media, including social media.
ASIC is targeting advertisements that are misleading or deceptive or that help it to identify products or services which are unsuitable or inappropriate and may be seeking to exploit people in the current COVID-19 environment.
Licensees can refer to RG 234: Advertising financial products and services (including credit): good practice guidance or seek legal advice for clarification of how to produce compliant marketing and advertising.
16 September 2020
APRA and ACCC have signed an updated Memorandum of Understanding (MoU) designed to foster closer collaboration between the two regulators. The new MoU commits both agencies to a broader model of engagement, with a greater emphasis on proactive information sharing and collaboration. The updated MoU is available on the APRA website at: Memoranda of understanding and letters of arrangement.
11 September 2020
Two recent Federal Court decisions support ASIC’s position on obligations to comply with ASIC Act notices and to clearly substantiate any claims for legal professional privilege.
9 September 2020
The Australian Prudential Regulation Authority (APRA) has issued a letter to authorised deposit-taking institutions (ADIs) that outlines APRA’s response to its consultation on capital measures and reporting requirements for loans impacted by COVID-19.
The response letter, final prudential standard and final reporting standard are available on the APRA website at: Treatment of loans impacted by COVID-19.
31 August 2020
The Australian Prudential Regulation Authority (APRA) has published its 2020-2024 Corporate Plan, which has been updated to account for the substantial impact of the COVID-19 pandemic.
APRA’s Corporate Plan continues to be founded on delivering four key community outcomes over the planning horizon:
- maintaining financial sector resilience;
- improving outcomes for superannuation members;
- transforming governance, culture, remuneration and accountability across all regulated institutions; and
- improving cyber resilience across the financial system.
31 August 2020
ASIC has published its Corporate Plan for 2020-24, focusing on non-financial risk, consumer protection, DDO, predatory lending and superannuation.
- promoting confident participation in the financial system to support long-term economic recovery
- deterring poor behaviour and misconduct through the ‘Why not litigate?’ discipline and driving cultural change using all of our regulatory tools
- improving entities’ management of key risks to prevent and mitigate harms to consumers and promote a healthy financial system and economic growth
- addressing consumer harm as a result of elevated debt levels and hardship, with a focus on predatory lending
- reducing poor product design and restricting misselling
- reducing misconduct by company directors and professional service providers
- delivering as a conduct regulator for superannuation.
24 August 2020
ASIC has released guidance to assist innovative financial businesses test their products and services under the Government’s enhanced regulatory sandbox (ERS), scheduled to commence on 1 September 2020.
The ERS is a class waiver from licensing for certain financial services and credit activities. It allows for a longer testing period (of up to 24 months), and encompasses a broader range of financial services and credit activities and a wider range of businesses than the ASIC sandbox that was issued in December 2016.
21 August 2020
ASIC has made ASIC Corporations (Litigation Funding Schemes) Instrument 2020/787 (Instrument) to manage the transition to the new regulatory regime for litigation funding. From 22 August 2020, operators of litigation funding schemes will be required to hold an Australian financial services (AFS) licence and litigation funding schemes will generally be subject to the managed investment scheme (MIS) regime in Chapter 5C of the Corporations Act.
21 August 2020
The Australian Prudential Regulation Authority (APRA) has published a new set of frequently asked questions (FAQs) concerning the release of the 2020 MySuper Product Heatmap in December 2020. The new FAQs are available on the APRA website at: MySuper Heatmap Frequently Asked Questions.
10 August 2020
The Australian Prudential Regulation Authority (APRA) announced it will recommence public consultations on select policy reforms and begin a phased resumption of the issuing of new licenses. The policy reforms that will be recommenced in 2020 through a process of public consultation are:
- the cross-industry prudential standard for remuneration;
- ADI capital reforms incorporating APRA’s unquestionably strong framework, Basel III and measures to improve transparency, comparability and flexibility;
- insurance capital reforms to incorporate changes in the accounting framework (AASB 17); and
- the prudential standard for insurance in superannuation, and updated guidance on the sole purpose test.
APRA publishes Chair Wayne Byres’ Opening Statement to the House of Representatives Standing Committee on Economics
5 August 2020
APRA is focusing on the core function of supervision at a time of heightened risk to the financial system. In doing so, their aim has been to help steer the industry through an unprecedented period, seeking a balance between regulatory flexibility and maintaining a prudent level of resilience. A safe, stable and resilient financial system is an absolutely critical foundation for fostering an economic recovery from COVID-19, Wayne Byres says.
30 July 2020
ASIC has released updated requirements for how financial firms deal with consumer and small business complaints under their Internal Dispute Resolution (IDR) procedures. The publication of RG 271 Internal dispute resolution follows extensive consultation with consumer and industry representatives, and will be complemented by a legislative instrument that clarifies the enforceable IDR standards and requirements.
ASIC has given industry until 5 October 2021 to comply with the new IDR standards and requirements, at which time RG 165 Licensing: Internal and external dispute resolution will be withdrawn. Licensees should also remain on the look-out for consultation on the IDR data reporting regime, which was recommended by the Ramsay Review into dispute resolution and complaints framework and passed into legislation in 2018.
28 July 2020
Westpac has provided an update on a reporting issue related to Threshold Transaction Reports (TTRs), described in its 2020 Interim Financial Results on 4 May 2020. The TTR issues include approximately 175,000 transactions that were not reported to AUSTRAC and approximately 365,000 TTRs that were reported to AUSTRAC but may have contained incomplete or inaccurate information.
Westpac has a dedicated website covering its response to AUSTRAC’s civil proceedings, and has previously announced the setting of aside $900 million to cover the penalty it could face. The scandal has already unleashed a management shake-up in the country’s oldest bank, where the chair, CEO, and other senior executives have been replaced.
1 July 2020
There were rounds of applause all around when Open Banking commenced on 1 July 2020. The big four banks are now required to share some customer data, including in relation to deposits, transaction accounts and credit and debit cards, with accredited third parties upon request by the customer. However, there are currently only two accredited data recipients able to receive this data from the big four banks: personal financing fintech Frollo, which boasts Volt Bank among its corporate partners, and customer-owned Regional Australia Bank.
Some institutions, though, are taking a direct to consumer route; Up, a subsidiary of Bendigo and Adelaide Bank, has announced the beta release of the Up API, with aspirations to support third party apps in the future.
Three years in the making, Open Banking is underpinned by four principles – being for and about the consumer, encouraging competition, creating business opportunities, and being efficient and fair for all. With the technical side of things now pretty much sorted, the big job ahead is educating consumers about why and how to get on board.
30 June 2020
APRA has published the first update to its MySuper Heatmap to reflect changes in superannuation fees and costs in the six months since the tool was launched. It found that fund administration fees have largely remained static or risen slightly. Further, the majority of funds that underperformed on fees and costs in the December 2019 Heatmap continued to have relatively high fees despite APRA having intensified its supervision of them.
On the plus side, more than 40 per cent of MySuper members have seen a reduction in fees over the reporting period. The prudential regulator advised that it had not yet updated the sections of the Heatmap focused on investment performance and sustainability because material changes in those areas were expected to take longer to manifest.
24 June 2020
ASIC has published regulatory guidance to assist in the application of the new best interests duty for mortgage brokers. From 1 January 2021, mortgage brokers will be required to act in the best interests of consumers and to prioritise consumers’ interests when providing credit assistance.
17 June 2020
Following consultation, ASIC has released a new regulatory guide on the administration of its product intervention power, together with a report on that consultation
17 June 2020
APRA has published the following frequently asked questions (FAQs) to provide authorised deposit-taking institutions (ADIs) with up-to-date guidance on supervisors’ expectations, during the period of disruption driven by COVID-19.
15 June 2020
ASIC puts responsible entities (REs) of all managed investment schemes (MISs) ‘on notice’ that they must ensure their investment fund advertising provides clear, balanced and accurate information. This follows ASIC’s risk based surveillance of advertising material, website disclosure and product disclosure statements from managed funds during the COVID-19 pandemic.
15 June 2020
ASIC has imposed additional conditions on the Australian financial services (AFS) licence of Societe Generale Securities Australia Pty Ltd (SGSAPL) to ensure compliance with client money regulations. The need for additional conditions arose after SGSAPL reported to ASIC that it had deposited client money into unauthorised bank accounts between December 2014 and September 2018. Client funds must be deposited with Australian authorised deposit-taking institutions or an account prescribed by client money regulations.
12 June 2020
ASIC has registered an amending instrument to specify an end date for three COVID-19 related instruments. ASIC had publicly stated that these relief measures were temporary and ASIC would repeal the instruments following the COVID-19 crisis. However, following feedback from the Senate Standing Committee for the Scrutiny of Delegated Legislation, ASIC has decided to amend these instruments to include specific end dates.
11 June 2020
ASIC has published its Interim Corporate Plan, which sets out five priorities to tackle the challenges presented by the COVID-19 pandemic:
- protecting consumers from harm at a time of heightened vulnerability
- maintaining financial system resilience and stability
- supporting Australian businesses to respond to the effects of COVID-19
- continuing to identify, disrupt and take enforcement action against the most harmful conduct, and
- continuing to build our organisational capacity in challenging times.
5 June 2020
The Morrison Government is today announcing the most significant reforms to the Foreign Acquisitions and Takeovers Act 1975 since its introduction. These reforms will ensure that our foreign investment framework keeps pace with emerging risks and global developments, including similar changes to foreign investment regimes in comparable countries. The Government will release exposure draft legislation for consultation in July, with the reforms scheduled to commence on 1 January 2021.
4 June 2020
Westpac announced the results of its investigation into the Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) compliance issues, as well as releasing the Advisory Panel Report into Board Governance of AML/CTF Obligations and the Promontory Assurance letter on management’s accountability review.
28 May 2020
The Government is making it easier for fintech businesses to trial new products by finalising regulations that will establish an enhanced regulatory sandbox. The sandbox creates a safe environment for fintech firms to test the viability of new products and services without first holding licences. Innovative firms now have 24 months to test their products with customers in the sandbox before obtaining a financial services licence or a credit licence from the Australian Securities and Investments Commission (ASIC). The enhanced sandbox will be available from 1 September 2020.
25 May 2020
Given the impact of the Coronavirus crisis and the uncertainty it continues to generate, it has been considerably more difficult for companies to release reliable forward-looking guidance to the market. Therefore, the Government will temporarily amend the Corporations Act 2001 (the Act) so that companies and officers’ will only be liable if there has been “knowledge, recklessness or negligence” with respect to updates on price sensitive information to the market.
22 May 2020
The Morrison Government is ensuring that litigation funders are subject to greater regulatory oversight by requiring them to hold an Australian Financial Services Licence (AFSL) and comply with the managed investment scheme regime. These changes complement the inquiry being undertaken by the Parliamentary Joint Committee on Corporations and Financial Services into litigation funding and the regulation of the class action industry which is due to report by 7 December 2020.
8 May 2020
ASIC will defer the commencement date for the mortgage broker reforms until 1 January 2021. ASIC will defer the commencement date for the design and distribution obligations until 5 October 2021. The deferral of these reforms follows, and is consistent with, the Government’s announcement today to defer by six months the implementation of commitments associated with the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry as a result of the significant impacts of COVID-19.
8 May 2020
The Morrison Government has today announced a six month deferral to the implementation of commitments associated with the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry as a result of the significant impacts of the coronavirus.
The deferral will enable the financial services industry to focus their efforts on planning for the recovery and supporting their customers and their staff during this unprecedented time.
ASIC warns consumers about investment advertising that compares fixed-term investment products to bank term deposits. A surge in such marketing of fixed-term investment products in recent months has prompted ASIC to caution consumers to take care making investment decisions based on such advertising. “Be wary of investments that claim to be ‘like’ a ‘term deposit’, ASIC Deputy Chair Karen Chester said.
Brush up on your RG234 obligations with our Marketing Financial Products short course.
APRA publishes frequently asked questions on loan repayment deferrals and residential mortgage lending
The Australian Prudential Regulation Authority (APRA) has published guidance for authorised deposit-taking institutions (ADIs) on supervisors’ expectations during the period of disruption driven by COVID-19.
The frequently asked questions (FAQs) cover the following topics:
- The regulatory capital approach for loan repayment deferrals
- Clarification of APRA’s guidance for serviceability assessments in Prudential Practice Guide APG 223 – Residential Mortgage Lending.
The FAQs will be updated periodically over coming months, and are available on the APRA website at: Banking COVID-19 frequently asked questions.
Complementing the Government’s announcement that super members facing financial hardship during the COVID-19 pandemic could be eligible for early access to some of their funds from 20 April 2020, APRA launched a new data collection initiative.
Registrable superannuation entity (RSE) licensees have been asked to gather and submit a range of information, including the number and value of early release benefits paid to superannuation members and the processing times of those payments. The first Early Release Initiative (ERI) data collection was due on 29 April 2020 for information as at 26 April 2020, with RSEs to submit ERI data collection forms weekly until further notice.
Statistics reported by the Australian Financial Review indicate that at least 100,000 requests had been lodged by members of retail super funds in the first few days since the scheme commenced. Link Administration Services, which is processing withdrawal applications on behalf of more than two-dozen funds mainly from the industry super sector, had handled 280,000 requests – roughly 62 per cent of the overall applications made through the ATO at the time. Later analysis from the Association of Superannuation Funds of Australia (ASFA) suggested that around 855,000 payments totalling some $7.1 billion had been made from super funds to individuals by the end of April.
APRA intends to publish official data at both the industry and fund level, with the first report having been released on 4 May 2020.
Treasury recently closed consultation on “Improving flexibility of superannuation for older Australians”.
The exposure draft Bill and Regulations are intended to give effect to the measure: Superannuation – improving flexibility for older Australians announced in the 2019-20 Budget, which the Government is targeting becoming effective from 1 July 2020.
The amendments to the SIS Regulations and corresponding changes to the Retirement Savings Accounts Regulations will allow people aged 65 and 66 to make voluntary contributions without meeting the work test, and people aged 70 to 74 to receive spouse contributions.
ASIC has released REP 660 ASIC enforcement update July to December 2019.
As well as outlining key actions taken over the past six months to enforce the law and support its enforcement objectives, the report covers ASIC’s ongoing areas of focus, including a foreword from Deputy Chair Daniel Crennan QC discussing the Office of Enforcement’s strategy and priorities for 2019 to 2021.
ASIC has commenced proceedings in the Federal Court against Youi Pty Ltd (Youi) for alleged breaches of section 13 of the Insurance Contracts Act 1984, in relation to Youi’s duty of utmost good faith in handling a building and contents insurance claim made by a policyholder.
ASIC alleges that Youi, which was an Insurance Case Study detailed in Volume 2 of the Final Report of the Financial Services Royal Commission, failed to meet the standard imposed by the duty in handling the claim as it took nearly two years to settle. The policyholder first made an insurance claim in January 2017 following a severe hailstorm in their home town of Broken Hill in November 2016, but repairs to the home took until November 2018 to finally be completed.
With the Government recently consulting on Exposure Draft legislation to regulate insurance claims handling as a financial service, ASIC looks forward to the changes, if passed, enhancing its ability to promote fair, transparent and timely claims handling.
In mid-April ASIC intervened after betting agency Sportsbet launched a product earlier that month which enabled punters to bet each day on whether the S&P/ASX 200 Index would end the session higher or lower.
ASIC said the bets constituted binary option-style trades, a financial product Sportsbet was not licensed to offer and which the regulator had recently consulted on banning the sale of.
After Sportsbet suggested that having many staff operating under work-from-home arrangements posed challenges in implementing its control framework, ASIC reminded firms to ensure that their business continuity plans and alternative working facilitated them maintain robust monitoring and supervision controls to ensure financial services were provided efficiently, honestly and fairly.
ASIC grants relief to industry to provide affordable and timely financial advice during the COVID-19 pandemic
In the wake of the Government introducing measures to allow individuals facing particular financial hardship to access their superannuation early, ASIC announced temporary relief measures to assist industry in providing consumers with affordable and timely advice during the COVID-19 pandemic.
The relief measures relating to consumers’ early access to superannuation comprise:
- allowing advice providers not to give a statement of advice (SOA) to clients when providing advice about early access to superannuation;
- permitting registered tax agents to give advice to existing clients about early access to superannuation without needing to hold an Australian financial services (AFS) licence; and
- issuing a temporary no-action position for superannuation trustees to expand the scope of personal advice that may be provided by, or on behalf of, the superannuation trustee as ‘intra-fund advice’.
Additionally, financial advisers were granted temporary relief to provide a Statement of Advice up to 30 business days after time-critical advice is given (instead of the usual 5 business days), and to provide a Record of Advice in place of an SOA to existing clients in certain circumstances.
In a joint media release, ASIC, APRA and the Reserve Bank of Australia announced that they had released feedback on responses received from selected major Australian financial institutions which were requested, via a ‘Dear CEO’ letter, to detail their current state of preparation for the end of London Interbank Offered Rate (LIBOR).
ASIC said it was vital that Australian institutions were aware of any business practices or systems that depend on LIBOR and were taking appropriate actions. Market participants are encouraged to assess the extent of their use of LIBOR and to start their transition to alternative rates.
Institutions are also being urged to communicate and highlight the potential impacts of LIBOR transition to their stakeholders, including end consumers, to raise awareness of the issues more broadly. LIBOR is set to be phased out globally by the end of 2021.
AUSTRAC is warning reporting entities to be on the lookout for shifts in the risks that criminals may pose to the financial system and the community as a result of the COVID-19 pandemic. Areas of criminal exploitation identified by AUSTRAC where the financial system may be more vulnerable include:
- Targeting of government assistance programs through fraudulent applications and phishing scams
- Movement of large amounts of cash following the purchase or sale of illegal or stockpiled goods
- Out of character purchases of precious metals and gold bullion
- Exploitation of workers or trafficking of vulnerable persons in the community
- An increase in the risk of online child exploitation following restrictions on travel
- A rise in extremist views either against members of the community or the government.
Reporting entities are encouraged to monitor for new and emerging threats and to submit suspicious matter reports (SMRs) to AUSTRAC.
The Australian Prudential Regulation Authority (APRA), along with the Reserve Bank of Australia (RBA) and Australian Bureau of Statistics (ABS) (the agencies), announced changes to the reporting obligations of ADIs and RFCs. These changes are intended to balance the need for entities to dedicate time and resources to maintaining their operations and supporting customers, against the increased need for timely, accurate data for use in the rapidly changing environment.
Monday 16 March 2020
As part of the Australian Government’s response to the novel coronavirus (COVID-19), ASIC has taken steps to ensure Australian equity markets remain resilient.
In addition to increasing volumes, Australia’s equity markets have seen exponential increases in the number of trades executed, with a particularly large increase in trades last Friday, 13 March. While there was no disruption to market operations on Friday, there was a significant backlog of work required to be undertaken over the weekend by the exchanges and trading participants. If the number of trades executed continues to increase, it will put strain on the processing and risk management capabilities of market infrastructure and market participants.
The Sydney Morning Heald is reporting that AUSTRAC and Westpac are moving towards a settlement that includes some admissions by the bank over its alleged 23 million breaches of its obligations under AML/CTF legislation.
After the court ordered the regulator and Westpac to produce a partial statement of agreed facts and admissions, AUSTRAC pushed back on the grounds that various matters remained in dispute.
However, Chief Justice Allsop found in favour of Westpac counsel that there was a large body of underlying primary factual material that the bank and regulator could agree to, and gave notice that the parties should assume this case was on for a hearing during summer 2020-21.
AUSTRAC and Westpac have been in mediation for some time and that mediation remains ongoing, the SMH reports.
Treasury and the consultation factory
Document handlers at Treasury have been kept busy in recent months, with consultation open on several initiatives, including many arising from the Financial Services Royal Commission. Our top picks are:
- Financial Services Royal Commission – Enhancing consumer protections and strengthening regulators – the grandaddy of recent consultations addressing all manner of matters covering breach reporting, enforceability of financial services industry codes, ongoing fee arrangements and disclosure of lack of independence, and the governance and selling of superannuation and insurance
- Financial Accountability Regime (FAR) – the Government announced it would implement recommendations 3.9, 4.12, 6.6, 6.7 and 6.8 of the Financial Services Royal Commission to extend the Banking Executive Accountability Regime (BEAR) to all APRA regulated entities and provide joint administration to ASIC as the conduct regulator
- Enhancements to Unfair Contract Term Protections – with the Government having undertaken a review of unfair contract term protections for small business contracts two years after they were first introduced in 2016, Treasury is seeking feedback on policy options to address issues identified by the UCT Review; and views on whether any enhanced UCT protections for small business contracts should also be extended to consumer and insurance contracts to ensure consistency in the wider operation of the protections.
ASIC has issued Information Sheet 243 Licensing requirements for providers of funeral expenses facilities for providers of funeral expenses facilities. Recent changes to the Corporations Regulations mean that entities who sell funeral expenses facilities will generally be required to hold an Australian financial services licence (and therefore meet associated obligations) from 1 April 2020.
The Financial Services Royal Commission had recommended that the exemption for funeral expenses policies from being a ‘financial product’ under the Corporations Act and the Corporations Regulations should be removed, after identifying harm to vulnerable consumers.
ASIC has issued CP 329 Implementing the Royal Commission recommendations: Advice fee consents and independence disclosure. CP 329 seeks feedback on:
- draft legislative instruments that deal with advice fee consents and independence disclosure; and
- a proposal to issue more guidance in RG 245 Fee Disclosure Statements to help industry meet obligations around ongoing fee arrangements, including renewal notices and fee disclosure statements.
ASIC’s response complements action Treasury has undertaken, namely consulting on exposure draft legislation to implement Recommendations 2.1, 2.2 and 3.3 of the Royal Commission.
ASIC’s consultation on CP 329 closes 7 April 2020 in order to ensure that the form of the proposed ASIC instruments is settled ahead of the proposed 1 July 2020 commencement of the law reform. ASIC also anticipates making updates to RG 245 in mid-2020.
APRA has set out its policy and supervision priorities for the next 12 to 18 months with an emphasis on fulfilling the four strategic goals of its Corporate Plan:
- maintaining financial system resilience
- improving outcomes for superannuation members
- improving cyber-resilience in the financial sector
- and transforming governance, culture, remuneration and accountability (GCRA) across all APRA-regulated institutions.
More specifically, its supervision priorities include using entity self-assessments to drive greater accountability and compliance, and encouraging underperforming superannuation funds to urgently improve member outcomes or exit the industry.
ASIC has published the latest six monthly update on its enforcement and regulatory work since September 2019. The update covers ASIC’s implementation of the recommendations of the Financial Services Royal Commission (FSRC), progress on referrals and case studies arising from the FSRC, its enhanced supervision program and how it is using its new regulatory tools and powers to identify and address misconduct and poor consumer outcomes.
ASIC commenced a four week consultation on draft guidance about the new best interests duty for mortgage brokers. The new obligations were legislated by Parliament in response to Recommendation 1.2 of the Financial Services Royal Commission.
Consistent with the legislation, the draft guidance outlined in CP 327 Implementing the Royal Commission recommendations: Mortgage brokers and the best interests duty is high-level and principles-based, but also incorporates practical examples. ASIC plans for the guidance to explain the obligations introduced by the Government, but not prescribe conduct or impose additional requirements.
With consultation having closed 20 March 2020, ASIC intends to publish final guidance before the obligations commence on 1 July 2020.
ASIC and APRA have jointly welcomed the proposed legislative reforms increasing the role of ASIC in superannuation in line with recommendations from the Financial Services Royal Commission.
The reforms, circulated by Treasury for consultation on 31 January 2020, include expanding ASIC’s role as conduct regulator while retaining APRA’s important role as the prudential and member-outcomes regulator in superannuation.
The changes to ASIC’s role will be accompanied by an enhancement in the close co-operation and collaboration between the two regulators, already strengthened by updates to their Memorandum of Understanding undertaken in November last year.
ASIC’s recent review of superannuation trustees’ communications about changes introduced through the Treasury Laws Amendment (Protecting Your Superannuation Package) Act 2019 (PYSP) has found that the material sent to members did not provide sufficient context for the reforms nor adequately explain what the changes meant for them.
The PYSP reforms were designed to benefit members with low superannuation balances (below $6,000) and those with accounts that have been inactive for 16 months. In REP 655, ASIC suggests that some communications used complex language, promoted a particular option that may not have been suitable for the member, or failed to include relevant information about the member’s existing superannuation arrangements that would have been helpful.
ASIC Commissioner Danielle Press urged super trustees to “take a member-centric approach to designing and delivering their PYSP communications. They must ask themselves: ‘Will this approach help my members make decisions in their interest?’”
The Federal Court has ordered AMP to pay a $5.175 million penalty after it found AMP failed to take reasonable steps to ensure its financial planners complied with the best interests duty and related obligations under the Corporations Act.
ASIC alleged that a number of AMP’s financial planners engaged in ‘rewriting conduct’, i.e. advice that results in the cancellation of the client’s existing insurance policies and the taking out of similar replacement policies by way of a new application rather than through a transfer. Through this practice, clients were exposed to a number of significant risks and the planners received higher commissions than they would have by simply transferring the policies.
While proceedings focused on the conduct of one particular planner, the court agreed with ASIC’s contention that with AMP having offered no evidence that it had ascertained the extent of breaches by other planners as requested by ASIC, the practice of rewriting conduct may have been more widespread.
Thursday 30 January 2020
The Australian Prudential Regulation Authority (APRA) has set out its policy and supervision priorities for the next 12 to 18 months with an emphasis on fulfilling the four strategic goals of its Corporate Plan: maintaining financial system resilience; improving outcomes for superannuation members; improving cyber-resilience in the financial sector; and transforming governance, culture, remuneration and accountability (GCRA) across all APRA-regulated institutions.
APRA Chair Wayne Byres said it was essential that both APRA, and the industries it regulates, continue to adapt to changing circumstances and new challenges.
“As a risk-based and preventative regulator, APRA must continually reassess its priorities not just in response to past events, but also to risks and vulnerabilities that may be on the horizon”. Read more
The Full Federal Court has ruled in ASIC’s favour, finding that in calls to 14 of 15 customers in two telephone campaigns conducted by members of Westpac’s Super Activation Team, the Westpac staff did provide them personal advice, in breach of the Australian financial services licences of two Westpac subsidiaries. The Full Court also found that by providing personal advice to their customers, the Westpac entities failed to comply with other financial services laws in the Corporations Act, including the ‘best interests duty’.
While not exactly the death knell for general advice, this case highlights some important issues for market intermediaries, such as how telesales are designed and closed, customer relationships of trust and what acting in ‘best interest’ means, ethical use of techniques such as social proofing, and the timing and nature of regulatory requirements such as general advice warnings and other disclosures. With implementation of Royal Commission recommendations well underway, design and distribution obligations being phased in, and long awaited review of RG 146 looming, the whole industry should keep an eagle eye on developments in this area.
ASIC has issued RG 270 Whistleblower policies to help companies establish policies that support and protect whistleblowers. The Regulatory Guide sets out the components that a whistleblower policy must include to comply with the law, and provides good practice guidance to assist companies develop and implement policies that are tailored to their operations.
As part of corporate sector whistleblower reforms, public companies, large proprietary companies, and proprietary companies that are trustees of registrable superannuation entities must have a whistleblower policy available to their officers and employees by 1 January 2020, supplementary to whistleblower protections in the Corporations Act that took effect for all companies from 1 July 2019.
Following concerns raised by ASIC about unfair telephone sales of life insurance, The Colonial Mutual Life Assurance Society Limited (trading as CommInsure) has conducted a remediation program expected to be finalised by the end of 2019. Refunds exceeding $12 million are to some 30,000 policyholders who were Commonwealth Bank customers between 2010 and 2014 and were sold a range of life insurance products via telemarketing calls by Aegon. CommInsure has also pleaded guilty to 87 counts of offering to sell insurance products in the course of unlawful, unsolicited telephone calls, contrary to s992A(3) of the Corporations Act – conduct colloquially known as ‘hawking’.
While CommInsure progressively ceased all outbound telemarketing of life insurance by December 2014, ASIC Deputy Chair Daniel Crennan QC commented on the conduct in question, saying “ASIC is concerned that the way in which these products were sold was manifestly unfair, with customers given insufficient information to make an informed decision”. ASIC identified concerning sales practices by CommInsure in its report released in August 2018, REP 587 The sale of direct life insurance.
A joint publication by ASIC and the Dutch Authority for Financial Markets has explored the effectiveness of disclosure and warnings in influencing consumer behaviour.
ASIC, in collaboration with its Dutch counterpart, spotlight the multiple cases where disclosure has been less effective than intended, ineffective or has actually backfired. The report identifies key limits of disclosure, supported by 33 case studies. A timely examination of this issue in the wake of the Financial Services Royal Commission and passing of design and distribution obligations legislation.
ASIC has called on superannuation trustees to improve the standard of communication to fund members about important reforms impacting member insurance arrangements. As a result of the recent Putting Members’ Interests First reforms, by 1 December 2019 superannuation trustees are required to write to members with a balance of less than $6,000. These members must be notified that their insurance cover may cease from 1 April 2020 unless they opt-in to continue this cover. By 1 April 2020, insurance is not to be provided to members who have an account balance less than $6,000 or for members under-25 years old, unless the member has elected in writing to take out or maintain insurance.
ASIC expects trustees to help their members understand the impact of the reforms on them and make good decisions by:
- providing balanced and factual communications, that include appropriate context about the reforms, and
- tailoring communications to the needs of their members.
An afr story revisits the Financial Action Taskforce’s latest report on Australia, which found that Australia is falling short on some counts, particularly in relation to real estate agents, lawyers and accountants still being only partially regulated under current AML/CTF rules. Regulatory reform has been slow, considering it has been proposed since 2013. Meanwhile, New Zealand, UK, Canada, Singapore, Hong Kong, and Malaysia are among regions introducing laws to cover these sectors, currently classified as ‘designated non-financial businesses or professions’ under global AML/CTF standards.
AUSTRAC has urged Australia’s mutual banking sector to take note of its latest money laundering and terrorism financing risk assessment report specific to the sector. The financial crime watchdog finds that while the mutual banking sector has a high level of vulnerability to financial crime, particularly as a target for such fraudulent activity as identity theft and scams, tax evasion, and welfare fraud, the overall money laundering and terrorism financing risk is Medium.
The European Securities and Markets Authority (ESMA) and ASIC announced that they have signed a Memorandum of Understanding setting out cooperation arrangements in respect of Australian benchmarks. In July 2019, the European Commission recognised Australia’s legal and supervisory framework applicable to the administrators of certain financial benchmarks as equivalent to the corresponding requirements under EU Benchmarks Regulation, and deemed that those requirements are subject to effective supervision and enforcement.
The MoU signed will allow benchmarks declared significant by ASIC (BBSW, S&P/ASX 200, Bond Futures Settlement Price, CPI, and Cash Rate) to be used in the EU by EU-supervised entities.
Keynote address by ASIC Commissioner Sean Hughes at the ARCA National Conference, Gold Coast, 14 November 2019
ASIC Commissioner, Sean Hughes, discussed the following at the Australian Retail Credit Association conference:
- Why does responsible lending matter?
- Why is ASIC updating its guidance, and why now?
- What does an update to the guidance mean and what will it achieve?
- Some misconceptions about responsible lending.
Read the full speech here.
ASIC Chair James Shipton launched a report on director and officer oversight of non-financial risk at a recent Australian Institute of Company Directors event.
The report was a write-up of the first in a series of reviews via which ASIC’s Corporate Governance Taskforce will examine corporate governance practices. Consistent with its overall supervisory approach, ASIC says practical insight into what actually goes on inside companies facilitates the identifying of problems before they become breaches; and heightens engagement, assessment and feedback loops between regulated entities and ASIC.
Improving governance and accountability is one of ASIC’s seven key strategic priorities for the year ahead.
We can answer that. Being good is no longer good enough, with Treasury recently wrapping up consultation on beefing up ASIC’s licensing, banning and information gathering powers.
Most notably, the ‘good fame and character’ requirement for AFS licensees looks set to be replaced by the ongoing requirement that they be a ‘fit and proper person’ – a test that already applies to Australian Credit licensees and APRA-regulated institutions.
Changes will also expand the grounds on which ASIC can issue banning orders as well as their scope.
Soon your organisation will really need to be careful about why someone’s picture ends up in the paper.
The Federal Government has directed the ACCC to immediately commence an inquiry into home loan pricing. The ACCC is to investigate a wide range of issues, including:
- the rates paid by new versus existing customers
- how the cost of financing for banks affects their rate setting decisions
- why RBA cuts aren’t always passed on in full
- the information consumers use to choose their loan supplier
- barriers to more consumers switching to cheaper home loans.
The inquiry comes a week after banks denied existing customers were paying a “loyalty tax” and will build on the ACCC’s Residential Mortgage Inquiry, which handed its final report in December 2018.
The ACCC is expected to produce a preliminary report by the end of March 2020, with a final report due 30 September 2020.
Non-major lenders can’t rest easy, though, with the House of Representatives standing committee on economics calling up a few to face questioning over their implementation of Financial Services Royal Commission recommendations at the end of November.
Treasury has released for consultation:
- draft regulations to remove the exemption for funeral expenses policies from the definition of financial products for the purposes of the Corporations Act; and
- draft legislation to ensure that it is clear that the consumer protection provisions of the ASIC Act apply to funeral expenses policies.
As a result, from 1 April 2020 funeral expenses policy providers could be subject to a variety of obligations including:
- the requirement to hold an Australian financial services licence;
- the general conduct obligation to act efficiently, honestly and fairly; and
- anti-hawking provisions.
Consultation on the changes, which address recommendation 4.2 of the Financial Services Royal Commission, closes 18 October 2019.
The ACCC is ruminating on the Australian Banking Association’s Banking Code of Practice to ensure the revised Code will benefit low-income consumers and drought-affected farmers.
Among other measures, revisions aim to improve basic bank accounts and low or no-fee accounts by prohibiting informal overdrafts unless requested by the customer, and dishonour fees.
However, the ACCC contends that basic bank accounts could still be overdrawn without the customer’s agreement in some circumstances, with banks able to continue to charge interest on overdrawn amounts.
Therefore, it wants to strengthen the changes by imposing conditions that would:
- not allow interest to be charged in these cases
- require any such interest charges to be repaid to the customer.
ASIC is now consulting on its proposal to use its product intervention power to reform the sale of add-on insurance and warranty products by car yards.
ASIC wants to apply a deferred sales model and additional obligations to the offering of add-on insurance products and warranties where finance is also arranged for purchase of a motor vehicle.
Consultation on the measures, which would cover car dealers, finance brokers and salary packaging firms, closes 12 November 2019.
ASIC is urging consumers to properly evaluate whether an SMSF is appropriate for their circumstances.
While potential benefits might stem from using an SMSF, ASIC and Productivity Commission research finds that this strategy might not be suitable for people who want a simple superannuation solution, particularly those that have low financial literacy or limited time to manage their own financial affairs.
Recent ATO figures again reveal that total assets held in SMSFs remain larger than those in either industry or retail funds.
ASIC used its product intervention power to ban a model of lending whereby a short-term credit provider and its associate charge fees under separate contracts.
One of the affected entities, Cigno, immediately sought Federal Court review of ASIC’s decision, in a bid to have the Product Intervention Order Instrument quashed.
With retail OTC derivatives also in ASIC’s crosshairs, there’s further argy bargy to come as more industry sectors scrutinise the regulator’s exercising of its new powers.
- CommInsure, wholly owned subsidiary of the Commonwealth Bank, has been charged with 87 counts of offering to sell insurance products in the course of non-compliant unsolicited telephone calls
- Doing it for the kids – ASIC’s review of school banking programs closes 31 October 2019
- APRA is pondering whether to pursue an appeal against court dismissal of its application for a finding that IOOF entities, directors and executives had contravened their obligations under the SIS Act
- AUSTRAC orders the appointment of an external auditor to examine PayPal Australia’s compliance with its International Funds Transfer Instruction reporting obligations
- Innovation might be back on the Federal Government’s agenda, with the Senate having resolved to establish a Select Committee on FinTech and RegTech.
Wednesday 11 September 2019
ASIC has provided its second update on its actions in response to the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry (the Royal Commission).
The Update outlines a number of measures across the organisation by which ASIC is implementing the seven priorities highlighted in its Corporate Plan 2019-23, one of which is to prioritise the recommendations and referrals from the Royal Commission.
ASIC suing mid-tier banks for use of unfair contract terms
True to a pledge that it’ll be less reticent to metaphorically don the wigs and robes going forward, ASIC has commenced proceedings in the Federal Court against Bank of Queensland and Bendigo and Adelaide Bank concerning unfair contract terms in small business contracts.
ASIC alleges that certain terms used by both institutions were unfair, as the terms:
- cause a significant imbalance in the parties’ rights and obligations under the contract;
- were not reasonably necessary to protect the banks’ legitimate interests; and
- would cause detriment to the small businesses if the terms were relied on.
ASIC has concluded its Responsible Lending hearings in Sydney and Melbourne. Areas that licensees commonly appeared to want new or revised guidance on included:
- Evaluating serviceability, including classifying income and expenses; use of benchmarks; and the extent to which it can be assumed that a borrower does willingly and wilfully change their lifestyle post loan approval (see also ASIC’s response to Westpac case judgement)
- What constitutes an assessment versus a recommendation, and the documenting of each.
Stay tuned for ASIC’s reply, particularly an updated RG 209 by the end of this year.
ASIC has called for public input on its proposed guidance on companies’ new obligation to implement a whistleblower policy.
Public companies, large proprietary companies and corporate trustees of registrable superannuation entities must implement a whistleblower policy and make it available to their officers and employees by 1 January 2020.
This requirement was introduced as part of the reforms to the corporate sector whistleblower regime that commenced on 1 July 2019. Don’t hold your breath for too long; consultation is only open for another week until 18 September 2019.
ASIC is consulting on a proposal to use its new product intervention power to ban the sale of binary options to retail clients, and to apply restrictions on the sale of CFDs. While most measures align Australia with action taken by other jurisdictions, unique ones relating to real-time disclosures have served as hair-raising warnings to the sector. Comments close 1 October 2019.
Coincidentally, ASIC has released a related report, REP 626 Consumer harm from OTC binary options and CFDs.
ASIC has released consumer research, REP 627 Financial advice: What consumers really think, which focused on the overall use of financial advisers, motivators and barriers to seeking personal advice, and consumer attitudes towards the financial advice industry.
While Australians believe financial advisers can offer significant expertise on financial matters, ASIC’s research shows that many don’t seek advice because they are put off by assumed high costs, significant distrust of the industry, and a perception that financial advice is only for the wealthy.
This report was soon followed by REP 628 Looking for a mortgage, which sets out findings from research ASIC commissioned to better understand consumer experiences and expectations when taking out home loans.
After seemingly slow starts and fierce operational decision-making over whether to get a full banking licence, take the interim restricted ADI route, or piggy-back ride on an existing bank, consumers should expect a flurry of product launches from neobanks soon.
With Volt graduating to a full licence in January 2019, and Judo and 86 400 being awarded theirs in recent months, Xinja earning its this month should see challenger banks racing each other to join the likes of Up and Douugh in offering new transaction accounts and loans to consumers and small business.
In a consultation letter, APRA has outlined its proposed approach to implementing end-to-end product accountability under the Banking Executive Accountability Regime. The proposal aims to enhance customer experience and outcomes by addressing a Financial Services Royal Commission recommendation that ADIs should assume responsibility for all steps in the design, delivery and maintenance of all products offered to customers, and any necessary remediation of customers in respect of any of those products.
Consider APRA’s approach complementary to product governance provisions included in the design and distribution obligations that ASIC-licensed financial services organisations will soon be subject to.
It’s been a busy month for Treasury’s inbox, with submissions likely flooding in as it consults on a number of topical issues, including:
- Digital Platforms Inquiry
- Mandatory Comprehensive Credit Reporting and Hardship Arrangements
- Mortgage broker best interests duty and remuneration reforms
- Regulation of mortgage brokers as financial advisers (which could create an environment in which a stronger case can be made for FEP to deliver a mortgage and finance broking qualification)
- Reforms to the sale of add-on insurance products.
Here’s a refresher on other key matters, in case you didn’t find them all that gripping the first time around:
- APRA governance crackdown – applies additional $250 million capital requirements to Allianz
- ASIC releases its enforcement update report for the period 1 January 2019 to 30 June 2019
- ASIC commences investigation of progress on transition away from grandfathered conflicted remuneration arrangements for financial advisers
- ASIC and APRA release their 2019-2023 corporate plans
- Treasury and APRA publish updates on Royal Commission recommendations implementation
ASIC’s Corporate Plan 2019-2023
Wednesday 28 August 2019
ASIC’s Corporate Plan 2019-20 to 2022-23 sets out our change agenda and regulatory priorities. It explains how we will act strategically to address misconduct in the financial system and improve consumer outcomes.
The BEAR gets bigger
On 1 July, the Banking Executive Accountability Regime (BEAR) commenced for all medium and small authorised deposit-taking institutions, including banks, credit unions and building societies. The purpose of the BEAR is to drive a strong risk culture from the top down by ensuring directors and executives in ADIs are held appropriately accountable for their actions and decisions.
APRA strengthens rules to combat contagion risk within banking groups
20 August 2019
The Australian Prudential Regulation Authority (APRA) has released a strengthened prudential standard aimed at mitigating contagion risk within banking groups. The updated Prudential Standard APS 222 Associations with Related Entities (APS 222) will further reduce the risk of problems in one part of a corporate group having a detrimental impact on an authorised deposit-taking institution (ADI). The new APS 222 will come into effect from 1 January 2021. Copies of APRA’s Response Paper, the updated prudential standard and reporting standards are available at: http://apra.gov.au/revisions-related-parties-framework-authorised-deposit-taking-institutions
Financial Services Royal Commission Implementation Roadmap
On 19 August 2019, the Government released its Financial Services Royal Commission Implementation Roadmap setting out how it will deliver on its comprehensive response to the Royal Commission. The Roadmap provides timelines for implementing the Government response, giving clarity and certainty to consumers, industry and regulators.
ASIC has concluded its Sydney round of public hearings on responsible lending. The line-up included a mix of major banks, non-bank lenders, industry associations and ancillary service providers. Next stop Melbourne.
8 August 2019
APRA is reminding regulated entities to adhere to legal reporting requirements, with Westpac and two of its subsidiaries set to pay a hefty cumulative penalty for failing to report data by the required deadlines.
1 August 2019
Financial services and other industries must now come together to make Open Banking implementation purposeful and beneficial for consumers. Under Open Banking, consumers will be able to access and safely transfer their banking data to trusted parties.
FASEA has been working with ACER to ensure the exam registration process is streamlined, accessible and effective and exam sitting opportunities are optimised.
On 17 July 2019, the Australian Government released a Capability Review report examining APRA’s ability to continue to meet its mandate into the future.
The Treasury Laws Amendment (Design and Distribution Obligations and Product Intervention Powers) Act 2019 received Royal Assent on 5 April 2019. Generally, it applies to financial products and credit products that are issued and distributed to retail customers. Who could it affect in the short term, and what might it mean for your organisation?
The new Banking Code of Practice came into on 1 July 2019. The Code is a set of enforceable standards that customers, small businesses, and their guarantors can expect from Australian banks.
BEAR provides an important new framework for promoting stronger accountability in the banking sector, but more than the BEAR alone is needed if financial institutions truly wish to demonstrate accountability.
Every Organisation’s training needs are different
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