The sequel to the business interruption second test case is now here. On Monday, the Full Federal Court handed down its decision in the second business interruption test case appeal. The decision is an appeal from the judgment of Justice Jagot in relation to various business interruption insurance claims. The Full Federal Court also handed … Continue Reading
Following the recommendations of the Senate Select Committee on Australia as a Financial and Technology Centre, Treasury has released a consultation paper on licensing and custody requirements for Crypto Asset Secondary Service Providers (CASSPrs). Consultation is currently open and will close on 27 May 2022. What is the consultation about? The consultation relates to approaches to … Continue Reading
Towards the end of February, APRA and ASIC continued to be active. In particular, both regulators released various consultation papers, draft guidance and FAQs for industry. Notably, APRA released a discussion paper on increasing superannuation data transparency and a note to APRA-regulated entities on managing compliance risk. ASIC also remade class order relief permitting insurers … Continue Reading
As we completed a year and ushered in a new one, the December and January period turned out to be an eventful one for the insurance, managed funds and superannuation sectors. APRA has published its first ‘Choice Heatmap’, alongside its annual MySuper Heatmap, which track changes in the decision-making of super members. Meanwhile, ASIC has … Continue Reading
On 10 February 2022, the Senate passed the long-awaited Corporate Collective Investment Vehicle (CCIV) legislation with bi-partisan support. As a result, the new funds framework is now expected to commence from 1 July 2022. This marks a significant milestone in the development of Australia’s funds management industry, broadening out the range of investment structures. The … Continue Reading
In a welcome development, on 20 December 2021 Federal Treasury released exposure draft legislation implementing exemptions from Australian financial services (AFS) licensing requirements for foreign financial service providers (FFSPs). This follows through on the Federal Government’s intention (announced in last year’s Budget) to restore previously well-established relief for FFSPs and create a fast-tracked licensing process … Continue Reading
To all of our global readers we would like to take this opportunity to wish you all a Merry Christmas and a Happy New Year. We will resume posting material following the festive period on 6 January 2021 although if there are any significant developments we will endeavour to provide an update.… Continue Reading
On 3 December 2021, the Government released draft legislation for the establishment of a reinsurance pool for cyclones and related flood damage. The release of the draft legislation comes after multiple government enquiries and reviews found that insurance for households and small businesses caused by extreme weather events is becoming less accessible and affordable. As … Continue Reading
On 28 October 2021, the Financial Accountability Regime Bill 2021 (Bill) was introduced into the House of Representatives to establish the much anticipated Financial Accountability Regime (FAR or the Regime). If passed, the Bill will expand and replace the current Banking Executive Accountability Regime (BEAR) under the Banking Act 1959 (Cth) and extend BEAR-like accountability … Continue Reading
In a significant decision for insurance contracts in various industries, the Full Court of the Federal Court of Australia has dismissed an appeal concerning the rights of a ‘third party beneficiary’ under an insurance policy. Insurers should take steps to ensure their policy wordings and policy schedules accurately reflect those they intend to cover. Otherwise, … Continue Reading
September continued to be a busy month in the funds, super and insurance sectors, as the industry is in the final stages of preparing for the anticipated breach-reporting, anti-hawking reforms and new customer complaints handling requirements which are effective from October. Notably, ASIC has provided further guidance on each of these topics to assist the … Continue Reading
On 5 October 2021, a number of insurance regulatory changes affecting insurers, reinsurers, coverholders, underwriting agencies and brokers commenced under the Corporations Act 2001 (Cth) (Corporations Act). In this article we will briefly cover the regulatory reforms that have now taken place and look at what might be next. 1. Product design and distribution obligations … Continue Reading
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
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
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
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
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
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
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
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
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
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
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
On Tuesday 11 May 2021, Treasurer Josh Frydenberg delivered the Australian Federal Budget 2021-2022, which contained an announcement as to future changes to the licensing and relief regime for foreign financial service providers (FFSPs). Find out what this means for FFSPs here.… Continue Reading
