Australia

Topic: General

Subscribe to General RSS feed

Financial services monthly wrap-up

The month of August 2021 saw a release of anticipated updates to the upcoming changes in the funds management, superannuation and insurance sectors. Notably, Treasury has released the draft updated Corporate Collective Investment Vehicle fund legislation and tax framework, the release of the first Your Future Your Super performance test results and APRA and ASIC … Continue Reading

Casino left without a cent as Federal Court rules on Business Interruption coverage claim

A significant Covid-19 related business interruption claim has been decided in favour of insurers. In Star Entertainment Group Limited v Chubb Insurance Australia Ltd [2021] FCA 907, the Federal Court dismissed Star Entertainment Group’s claim for business interruption losses under an industrial special risks (ISR) policy. It appears Star has appealed the decision. Not surprisingly, … Continue Reading

Government fills the void for unfair contract term enforcement

Following its adoption by insurers in April this year, unfair contract terms laws are set for another revamp. The Treasury has just released draft legislation which will make unfair contract terms unlawful. These laws have been foreshadowed for some time (see our previous update). Currently no pecuniary penalties apply once a contract term is declared … Continue Reading

Financial services monthly wrap-up July 2021

The month of July 2021 saw the release of various anticipated consultations for the financial services sector. In this wrap-up, we feature: ASIC’s consultation on the Financial Accountability Regime (FAR) draft bill which is set to improve the risk and governance cultures of the banking, insurance and superannuation sectors. Guidance on hawking reforms and the … Continue Reading

A tale of two claims: Federal Court hands down two judgments on non-disclosure

In what has proven to be the best and worst of times for insurers, two recent Federal Court of Australia decisions shed further light on when an insurer may be able (or in the case of the second case, unable) to exercise its statutory rights in the event of non-disclosure. In All Class Insurance Brokers … Continue Reading

Not FAR to go until accountability regimes come to insurance

The Treasury has released for consultation the draft bill for the Financial Accountability Regime (FAR or the Regime). The Regime will apply to the banking, superannuation and insurance sectors. Importantly, the Regime strengthens the Banking Executive Accountability Regime (BEAR), and extends the regime, in line with the recommendations from the Financial Services Royal Commission, to … Continue Reading

Are insurers still allowed to talk to customers? ASIC proposes changes to Hawking Prohibitions regulatory guidance

On 21 July 2021, ASIC released Consultation Paper 346 and a draft updated Regulatory Guide 38 (RG 38) to reflect new legislative changes that strengthen the current hawking prohibitions. As many in the industry will know, new hawking prohibitions come into effect on 5 October 2021. The new hawking prohibitions will not only affect insurers, … Continue Reading

Treasury drops-off products from add-on insurance reforms

We previously wrote on the upcoming implementation of the 2021 insurance regulatory reforms, including the deferred sales model for add-on insurance products. On 8 July 2021, the Treasurer announced which insurance products will be exempt from the deferred sales model. What is the Deferred Sales Model? The Government passed the Financial Sector Reform (Hayne Royal … Continue Reading

Update: Treasury consultation on FFSP relief

As anticipated in our previous update, today Treasury released a consultation paper on options to restore previously well-established regulatory relief for Foreign Financial Services Providers (FFSPs), and options to create a fast-tracked licensing process for those that wish to establish a more permanent operation in Australia. Stakeholder feedback is sought on the following three options … Continue Reading

ASIC consults on crypto-asset based listed funds and other investment products

On 30 June 2021, ASIC released its consultation paper 343: Crypto-assets as underlying assets for ETPs and other investment products (CP343). The consultation has a broad remit and potentially significant consequences for trading in and investment exposure to crypto-assets. ASIC is seeking feedback on proposals about exchange-traded products (ETPs) and other investment products that provide … Continue Reading

Financial services monthly wrap-up – May 2021

In May 2021, the Federal Budget for the 2021-2022 financial year was handed down which included a number of proposed legislative reforms which will affect the Australian funds management and superannuation industries. Most notably, the Budget Papers included a commitment to the implementation of the Corporate Collective Investment Vehicle regime and also flagged changes to … Continue Reading

Financial services monthly wrap-up – April 2021

During April 2021, ASIC has used its product intervention powers to ban the sale of binary options to retail clients, as well as to extend temporary relief instruments amidst COVID-19. ASIC has also urged claims handling firms to lodge licences by next month. The superannuation sector has seen the release of exposure draft regulations to … Continue Reading

Financial services monthly wrap-up – March 2021

March 2021 has seen the release of legislative reforms to advice fee consent and lack of independence disclosure by financial advisers. ASIC has clarified its position on virtual AGMs and released an interim report on competition in the managed funds industry. APRA has urged life insurers and superannuation funds to ensure their insurance offerings and … Continue Reading

Legal update – Australia | Financial services monthly wrap-up: February 2021

The month of February 2021 has seen continued momentum for a raft of changes affecting financial services providers from various industries. APRA has released its new policies and priorities for 2021, which have a particular focus on the impacts of COVID-19 and seek to strengthen the financial services sector in dealing with future crises. The ‘Your … Continue Reading

Financial services monthly wrap-up: December 2020 to January 2021

The months of December 2020 and January 2021 have been a busy time in the funds management, superannuation and insurance sector. In particular, ASIC has released its final Regulatory Guide 274 Product design and distribution obligations, which will bring industry-wide changes to how financial products are formed, promoted and marketed. The impact of COVID-19 has … Continue Reading

ASIC releases practical field guide on consumer-centred remediation programs

To help licensees design and execute consumer-centred remediation programs, ASIC has recently released a practical field guide titled ‘Making it right: How to run a consumer-centred remediation’ (the Field Guide). A consumer-centred remediation is one that puts the interests of consumers at the heart of every stage of the remediation. The Field Guide outlines the … Continue Reading

Brexit: Where have we got to and what should you do now?

Webinar on 2 September 2020 at 8:45am to 10:00am (BST) We are evolving our successful 40 minute briefings into webinars for financial services professionals. This includes senior management and those in legal, compliance and risk teams who have or are developing financial services expertise. The webinars will be led by senior members of our financial … Continue Reading

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

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

New AUSTRAC Compliance Report format for 2018

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

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

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

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

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

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

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
LexBlog