Australia

Consumer Data Right and Open Banking: Government moves forward on legislation

The Australian Treasury has recently released draft legislation[1] with respect to Consumer Data Right (CDR) for a second round of public consultation. Under the proposed CDR regime, businesses in certain sectors of the economy will be compelled to provide consumers (individuals and business customers) with access to particular data, including their transactions, usage and product … Continue Reading

New AUSTRAC Compliance Report format for 2018

By Ivan Yau (AU) on November 4, 2018 Posted in Anti-money laundering, Australia, General, Regulators, Regulatory Compliance

AUSTRAC has released a new format for reporting entities to submit their annual compliance report (Compliance Report). This new compliance reporting format comes as a result of AUSTRAC’s reforms to their previous Compliance Report requirements which were suspended for the 2017 reporting period, and is designed so that reporting entities are required to provide more … Continue Reading

APRA’s review of the superannuation prudential framework

By Jon Ireland (AU) and Cate Shirley (AU) on October 7, 2018 Posted in Australia, FinTech, General, Public Submissions, Regulators, Superannuation, Uncategorized

On 23 May 2018 APRA announced that it would conduct a review of the superannuation prudential framework that was introduced in 2013 as part of the Stronger Super reforms.[1] The consultation is scheduled to take place over a four-month period and involve both formal and informal feedback from stakeholders across the superannuation industry. The structure … Continue Reading

Australian financial services and sanctions law

By Ivan Yau (AU) and Hazel Brasington (AU) on July 19, 2018 Posted in Australia, Regulators, Sanctions

“Sanctions” have been in the news quite often lately. The United Nations has adopted, and many of its member-states have imposed, trade and economic sanctions against North Korea to pressure its regime to give up nuclear weapons. Similarly, recent political developments surrounding the so-called “Iran Nuclear Deal” have been all about re-imposing sanctions in relation … Continue Reading

In the age of disruption, ASIC is a pioneer for cross-border regulation

By Claudine Salameh on June 28, 2018 Posted in Australia, FinTech, Investigations, Regulators

In an attempt to respond swiftly to some of the risks and challenges that have arisen from technological developments and information sharing, ASIC has become one of the first signatories to the newest standards for cross-border enforcement. The latest Enhanced Multilateral Memorandum of Understanding Concerning Consultation and Cooperation and the Exchange of Information (EMMoU) builds … Continue Reading

ASIC calls on retail OTC derivatives issuers to lift standards and address regulatory concerns

By Jon Ireland (AU) on June 28, 2018 Posted in Australia, Regulators

ASIC recently undertook a surveillance of the retail OTC derivatives sector, which has an estimated annual turnover of $11 trillion and over 450,000 investors in Australia. ASIC has released Report 579 here in which it identifies sector-wide issues with certain practices, including: misleading marketing materials unclear pricing methodologies, particularly around cryptocurrency CFDs inadequate risk management … Continue Reading

ASIC consults on its proposal to repeal and replace the ASIC class orders for Foreign Financial Services Providers with modified licensing regime

By Nikki Bentley (AU) and Matthew Farnsworth (AU) on June 7, 2018 Posted in Australia, Financial advice, Financial advice, FinTech, Funds management, General, Regulators

ASIC has released CP 301, a consultation paper which proposes a modified licensing regime (in place of the current FFSP relief available for FFSPs in certain jurisdictions) for foreign financial services providers carrying on a financial services business in Australia, with submissions due by 31 July 2018. Background In 2003, ASIC issued class order relief … Continue Reading

What Australian financial institutions need to know about cybersecurity and responding to cyber-attacks

By Ivan Yau (AU) on May 28, 2018 Posted in Australia, cyber security, Cybersecurity, data, FinTech, General, Regulators

It has been 3 months since Australia’s Notifiable Data Breach Scheme (NDB Scheme)[1] came into force and, already, the Office of the Australian Information Commissioner (OAIC) is receiving many notifications of cyber-attacks and other data breaches – both voluntarily and under the NDB Scheme. We will see even greater awareness of cybersecurity and data protection … Continue Reading

Sizing up the 3 BEARs

By Ivan Yau (AU) and Zein El Hassan (AU) on May 7, 2018 Posted in Australia, Banking, BEAR, Market integrity and misconduct, Regulators

The Australian Treasury has released and completed its consultation process on its Exposure Draft and accompanying Explanatory Material for the Banking Executive Accountability Regime (Size of an Authorised Deposit-taking Institution) Determination 2018. This draft legislative instrument defines what small, medium and large Authorised Deposit-Taking Institutions (ADIs) under the Banking Executive Accountability Regime (BEAR) are: a … Continue Reading

ASIC updates INFO 225: Corporate regulator bytes back at misleading and deceptive ICOs

By Ivan Yau (AU) and Jon Ireland (AU) on May 1, 2018 Posted in ASIC, Australia, FinTech, General, Market integrity and misconduct, Regulators

The Australian Securities and Investments Commission (ASIC) has released its updated guidance with respect to the treatment of initial coin offerings (ICOs) and cryptocurrencies. In its updated Information Sheet (INFO 225), the corporate regulator has clearly outlined its intent to crack down on any misleading or deceptive conduct by ICO issuers and cryptocurrency traders. Misleading … Continue Reading

Royal Commission is making the BEAR growl louder – striking FEAR into financial institutions

By Ivan Yau (AU) and Zein El Hassan (AU) on April 22, 2018 Posted in Australia, Banking, BEAR, Financial advice, General, Investigations, Market integrity and misconduct, Regulators

At Norton Rose Fulbright, we have commented on a number of occasions that we expect the Banking Executive Accountability Regime (BEAR) to be extended beyond just authorised deposit-taking institutions (ADIs) and so as to cover other areas of the financial services sector. Such move, which we have previously informally nicknamed “FEAR” (Financial Executive Accountability Regime), … Continue Reading

Taking a byte at financial crime: New AML/CTF guidance and timelines for digital currency exchanges

By Ivan Yau (AU), Angus Jamieson (AU) and Jon Ireland (AU) on April 16, 2018 Posted in Anti-money laundering, Australia, FinTech, General, Investment, Regulators

Australia’s Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) regulator, AUSTRAC, has released its guidance with respect to new laws that require digital currency exchange (DCE) providers to register and comply with AML/CTF obligations. AUSTRAC takes a broad approach in interpreting what is covered within the legal definition of a DCE. Essentially, any operation that converts fiat … Continue Reading

Possibility of extending the claws of BEAR

By Zein El Hassan (AU), Claudine Salameh, Candy Lau, Ivan Yau (AU) and Helen Taylor (AU) on April 4, 2018 Posted in Australia, Banking, BEAR, Financial advice, General, Insurance, Investigations, Market integrity and misconduct, Regulators, Superannuation

As the financial sector waits for the Australian Prudential Regulation Authority (APRA) to fully awaken the Banking Executive Accountability Regime (BEAR) through the provision of further guidelines, there is already a lot of chatter as to whether BEAR should be extended beyond its initial coverage of APRA-regulated Authorised Deposit-taking Institutions (ADIs). The Parliamentary Joint Committee … Continue Reading

Listed funds holding crypto-assets: ASX’s position

By Nikki Bentley (AU) and Ivan Yau (AU) on February 25, 2018 Posted in Australia, FinTech, Funds management, General, initial coin offerings, Regulators

Increasingly, clients are coming to us for regulatory advice surrounding the mining of cryptocurrency tokens, operating digital currency exchanges, raising funds through Initial Coin Offerings, and investments involving cryptocurrencies. On the heels of such heightened interest in investing in cryptocurrencies, the Australian Securities Exchange (ASX) has released their guidance with respect to Listed Investment Companies … Continue Reading

The BEAR Awakens!

By Zein El Hassan (AU) and Ivan Yau (AU) on February 7, 2018 Posted in Australia, Banking, BEAR, General, Market integrity and misconduct, Regulators

After a much long and at times unbearable wait, Federal Parliament has yesterday passed the Treasury Laws Amendment (Banking Executive Accountability and Related Measures) Bill 2018 (BEAR Legislation). The BEAR Legislation amends the Banking Act 1959 to impose accountability, remuneration and notification obligations on authorised deposit-taking institutions (ADIs) and those in directorship and senior management … Continue Reading

Treasurer wants BEAR by the start of next financial year

By Zein El Hassan (AU) and Ivan Yau (AU) on February 5, 2018 Posted in Australia, Banking, BEAR, Financial advice, General, Investigations, Market integrity and misconduct, Regulators

The Treasurer, the Hon Scott Morrison MP, has given his Second Reading Speech in the Parliament with respect to the Treasury Laws Amendment (Banking Executive Accountability and Related Measures) Bill 2017 (BEAR Legislation) that introduces the Banking Executive Accountability Regime (BEAR). In his speech, the Treasurer made no surprises except that his Government still intends … Continue Reading

Encouraging results on consumers’ perception of banks

By Claudine Salameh and Candy Lau on January 23, 2018 Posted in Australia, Banking, Financial advice, General, Insurance, Investigations, Market integrity and misconduct, Regulators, Superannuation

In April 2016, the Australian Bankers’ Association (ABA) initiated the Banking Reform Program – Better Banking (Program).[1] The Program was developed to protect consumer interests, increase transparency and accountability, and to build consumer trust and confidence in banks through a range of initiatives. Edelman Intelligence has conducted two rounds of consumer research studies to track … Continue Reading

Australian financial institutions may see greater involvement in counter terrorism financing efforts

By Zein El Hassan (AU) and Ivan Yau (AU) on January 22, 2018 Posted in Anti-money laundering, Australia, General, Investigations, Regulators

In light of today’s geo-political climate and public concerns over the threat of terrorist attacks, we see a trend of governments placing greater focus on countering the funding of terrorist groups. Indeed, the United Nation’s International Convention for the Suppression of the Financing of Terrorism, which Australia has ratified, has been in force since 2002 … Continue Reading

New Banking Code of Conduct provided to ASIC

By Claudine Salameh on December 20, 2017 Posted in Australia, Banking, General, Market integrity and misconduct

A new Banking Code of Practice has been developed and sent to ASIC for approval. The new Code will also be scrutinised by the Royal Commission for the purpose of determining whether or not the industry code is adequate to protect individual consumer and small business rights. The new Code was rewritten following an independent … Continue Reading

Changing the digital currency game: new laws to regulate Bitcoin in Australia

By Zein El Hassan (AU) and Ivan Yau (AU) on December 7, 2017 Posted in Anti-money laundering, Australia, FinTech, General, Regulators

Ever since the infamous Silk Road website was investigated and shut down by the US Federal Bureau of Investigation in 2013, and again in 2014, for facilitating the trafficking of illegal narcotics on the “darknet” using Bitcoin, the world of digital currencies has never been the same. Once upon a time Bitcoin was often used … Continue Reading

Royal Commission into Misconduct in Financial Services

By Zein El Hassan (AU) and Ivan Yau (AU) on November 30, 2017 Posted in Australia, Banking, Financial advice, General, Insurance, Investigations, Market integrity and misconduct, Public Submissions, Regulators, Superannuation

The much anticipated Royal Commission was no surprise to the Australian banking industry. What was surprising was the extension of its terms of reference to local and foreign deposit-taking institutions, life and general insurers, superannuation funds, as well as asset managers, financial planning businesses and all other holders of Australian financial services licences. Let there … Continue Reading

Extending data protection protocols for financial institutions: A reminder to hold third party service providers accountable

By Zein El Hassan (AU), Ivan Yau (AU) and Nick Abrahams (AU) on October 27, 2017 Posted in Anti-money laundering, Australia, FinTech, General, Regulators

Recent instances of cyber-attacks targeting third party service providers of government agencies and private sector organisations have coincided with the latest release of the Australian Cyber Security Centre (ACSC)’s 2017 Threat Report. This report comes as a timely reminder of the ongoing digital threats to organisations, such as those in the financial services sector, especially … Continue Reading

ASIC releases guidance on Crowd-Sourced Funding Intermediary Licencing

By Zein El Hassan (AU), Ben Smits (AU) and James De Szell (AU) on September 26, 2017 Posted in Australia, Financial advice, Financial advice, FinTech, General, Investment, Regulators

It is an exciting time for Australian equity market participants with a new crowd-sourced funding (CSF) regime due to commence on Friday 29 September 2017. CSF, in essence, involves raising funds, usually through an online intermediary, from a large number of people who each make relatively small financial contributions. Australia’s new regime, introduced in Pt … Continue Reading

Did you implement ASIC’s recommendations on CCI?

By Simon Lovegrove (UK) and Zein El Hassan (AU) on August 10, 2017 Posted in Australia, General, Insurance, Regulators

Consumer credit insurance (CCI) is a type of add-on insurance sold with credit cards, personal loans and car loans. It is promoted to borrowers to help them meet their repayments if they lose their job, become sick or injured, or die. However, CCI has long been associated with poor consumer outcomes in Australia and overseas, … Continue Reading