Australia

Financial services monthly wrap up – August 2019

In August 2019, ASIC announced plans to review the transition away from grandfathered conflicted remuneration and has proposed to use its new product intervention powers with respect to binary options and contracts for difference (CFDs). APRA and the Treasury have also provided an update on the implementation of recommendations made from the Royal Commission into … Continue Reading

Financial services monthly wrap up – July 2019

By Jon Ireland, Charlotte Henry, Matthew Farnsworth (AU) and Cate Shirley (AU) on August 5, 2019 Posted in ASIC, Australia, Financial advice, Financial Services, funds management

In July 2019, ASIC released the highly anticipated consultation on foreign financial services providers (FFSPs) licensing relief in Australia and announced that it had requested that exchange market operators not admit any managed funds that do not disclose their portfolio holdings daily and which have internal market makers. ASIC implements pause on admission of managed … Continue Reading

Global Asset Management Quarterly

The latest issue of Global Asset Management Quarterly is now available here. In this issue we cover: Sustainable finance is a trend set to stay Brexit: latest developments Luxemburg update Ireland update The proposed Australian corporate collective investment vehicle SFC raises disclosure requirements for Green or ESG funds Mutual recognition of funds: Netherland – Hong … Continue Reading

What do ASIC’s proposals mean for foreign financial services providers?

By Matthew Farnsworth (AU), Cate Shirley (AU), Jon Ireland and Charlotte Henry on July 12, 2019 Posted in Asia, Australia, Financial advice, Funds management, General, Germany, Investment, Regulators, Regulatory Compliance

Introduction As noted in our earlier update, ASIC has released its updated proposals for the licensing relief available to foreign financial services providers (FFSPs) servicing wholesale clients in Australia, with the release of Consultation Paper 315. In summary, ASIC has proposed to: extend the expiry of the sufficient equivalence relief and limited connection relief until … Continue Reading

ASIC proposes to extend FFSP relief to 31 March 2020 and new funds management relief

By Cate Shirley (AU) and Matthew Farnsworth (AU) on July 3, 2019 Posted in ASIC, Australia, Financial advice

ASIC has today published a media release on Consultation Paper 315 proposing to extend the current licensing relief for foreign financial service providers (FFSP) in Australia, while it further consults on the new licensing relief that will apply to FFSPs. Main takeaways: ASIC proposes to extend the ‘limited connection relief’ to 31 March 2020 and … Continue Reading

Financial services monthly wrap up – June 2019

By Jon Ireland, Charlotte Henry, Matthew Farnsworth (AU) and Cate Shirley (AU) on July 2, 2019 Posted in Australia, Banking, Banking, Banking, Financial Services, Regulation, Superannuation

In June 2019 ASIC released its estimates for the Industry Funding levy for the 2018-19 financial year. Further, ASIC and APRA have formally commenced consultation on product intervention powers and product responsibility under the Banking Executive Accountability Regime respectively. 1 July 2019 also marks the commencement date of a variety of new and updated legislation … Continue Reading

Open Banking around the world | A global comparative guide

By Simon Lovegrove (UK) and Alan Bainbridge (UK) on June 20, 2019 Posted in Africa, Asia, Australia, Banking, Banking, Banking, Banking, Banking, Banking, Banking, Banking, Banking, Canada, Germany, Italy, The Netherlands, United Kingdom, United States

The UK continues to be the global pioneer in open banking through the implementation of the EU PSD2 and the CMA open banking initiative. However, through regulatory reforms and/or market-led initiatives, many jurisdictions are now catching up. Working with our colleagues across the globe, we have produced a comparative guide to open banking as part … Continue Reading

Financial services monthly wrap up – May 2019

By Jon Ireland, Matthew Farnsworth (AU), Charlotte Henry and Cate Shirley (AU) on June 4, 2019 Posted in Australia, Regulatory Compliance

The May issue of the financial services monthly wrap up is now available. In this issue we report on: ASIC releases market integrity report for 1 July to 31 December 2018; ASIC releases guidance on ICOs and crypto-assets; ASIC invites public consultation in relation to complaints handling standards of financial institutions; ASIC Annual Forum 2019; … Continue Reading

Consensus New York & Blockchain week – key takeaways

By Hannah Meakin (UK) and Etelka Bogardi (HK) on May 21, 2019 Posted in Africa, Asia, Australia, Canada, Fintech, Fintech, FinTech, Fintech, Fintech, Fintech, Fintech, Fintech, Fintech, Germany, Italy, The Netherlands, United Kingdom, United States

Partners from our global FinTech team flew in from Hong Kong, Vancouver, London and Dallas to join our New York team to attend Consensus and Blockchain week in NYC (13-15 May). Consensus is an annual global conference which brings together the world’s most innovative minds to explore and debate the future of blockchain and crypto. … Continue Reading

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

By Ivan Yau (AU) on November 12, 2018 Posted in Australia, Banking, data, FinTech, Privacy, Regulators, Regulatory Compliance

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 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 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 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 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 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), 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