In the media
Finance regulators tackle regaining investor trust
ASIC chair James Shipton has called for financial
institutions to integrate fairness into their operations, as
international financial regulators have said markets are wrestling
with regaining trust from investors (17 May 2019).
More...
AFCA welcomes moves to track dispute resolution within
financial firms
The Australian Financial Complaints Authority
(AFCA) has welcomed ASIC's announcement of a
raft of measures to strengthen the complaints handling process
within financial firms (15 May 2019).
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CFA recommends sweeping reforms to wealth sector
The global CFA Institute and its Australian subsidiary
have released 10 major recommendations for reform in the wealth
management industry and argue that simply disclosing vertically
integrated conflicts is not enough in a report titled
Professionalising Financial Advice (14 May 2019).
More...
Regulators urge financial institutions to plan for LIBOR
transition
The ASIC has written to the CEOs of several major
Australian financial institutions regarding their preparations for
the end of LIBOR. The UK Financial Conduct Authority
(FCA) has stated that it will no longer use its
powers to sustain LIBOR beyond 2021 (09 May 2019).
More...
Industry fund pays $12,600 over 'independent
advice'
Industry fund HostPlus has paid a $12,600 infringement
notice penalty for making misleading claims about offering
"independent advice" (09 May 2019).
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Super funds warned on member best interest
Superannuation funds have been placed on notice that they
need to adopt a higher duty to member best interests when shifting
member balances into eligible rollover funds
(ERFs) (09 May 2019).
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Should ESG be made a regulatory necessity?
The industry funds-backed Australian Council of
Superannuation Investors (ACSI) has called on the
major parties to commit to strengthen investment stewardship and
environmental, social and governance (ESG)
considerations for institutional investors (09 May 2019).
More...
FSC: One regulatory regime for financial advisors
The independent review of the Tax Practitioners Board
(TPB) and the Tax Agent Services Act 2009
(Review) presents an important opportunity to streamline two
separate regulatory regimes into one that applies to financial
advisers (06 May 2019).
More...
In practice and courts
FASEA approves Securities Institute Australia 8 unit
Diplomas for 2 credits RPL
FASEA advises that it has approved the following
Securities Institute Australia 8 unit Diplomas for 2 credits
recognition of prior learning: Securities Institute Education
Diploma (Diploma of Financial Planning) Securities Institute
Education Diploma (15 May 2019).
More...
ISA Report: The MATILDA Model
Published 10 May 2019. Industry Super Australia
(ISA) has developed MATILDA macroeconomic Time,
Liquidity and Dynamic Analysis model of the Australian economy.
This is an operational large-scale Australian economy macroeconomic
model of the feedback loop between the financial flow-of-funds (the
change in financial holdings of major institutional sectors of the
economy) and the national economy.
More...
AFCA: Get ready for law reform changes
A number of law reform and subsequent administrative
changes from the Bankruptcy Amendment (Debt Agreement Reform)
Act 2018 and the Insolvency Law Reform Act 2016, will
commence soon. Details are outlined
here (15 May 2019).
APRA releases approved audit report Form for
superannuation funds with reporting periods ending on or after 30
June 2019
The following provides forms and prudential standards that
are required under the Superannuation Industry (Supervision)
Act 1993. (14 May 2019). More...
Australian Law Reform Commission (ALRC): Review into
Australia's corporate criminal responsibility regime
Note: Scope of the reference -The reports which the ALRC
should consider should include but not be limited to the: 2019
Final report of the Royal Commission into Misconduct in the
Banking, Superannuation and Financial Services Industry; and 2017
report of the ASIC Enforcement Review Taskforce. The ALRC should
provide its report to the Attorney-General by 30 April 2020.
More...
APRA consultation: The Financial Sector (Shareholdings)
Rules 2019 (the Rules)
In particular, APRA has proposed Rules setting out the
matters that must be considered in determining if a person is
"fit and proper" for the purposes of the FSSA. The
consultation period on the proposed Rules has now commenced, with
APRA accepting submissions until 27 May 2019. Copies of the draft
Rules and explanatory material are available
here.
ASFA reminder: Recovering your unclaimed money
From the 27th June 2019 applications for unclaimed monies
under s254 of the Bankruptcy Act can be made directly to Australian
Financial Security Authority (AFSA) replacing the
current Court application process. An application form and further
information about the new process will be published closer to the
commencement date.
More...
IFAC: Global consultation on quality management for
firms and engagements now open
The International Auditing and Assurance Standards Board
(IAASB) seeks public comment by July 1, 2019 on three interrelated
standards that address quality management. The proposals bring
important changes to the way professional accountancy firms are
expected to manage quality—for audits, reviews, and other
assurance and related services engagements
AIST submission
06 May 2019 -
Universal terms for insurance within MySuper
FSC submission
09 May 2019 -
FSC Submission - Enforceability of Financial Services Industry
Codes 12 April 2019
09 May 2019 -
FSC - Ending Grandfathered Conflicted Rem for Financial Advisers
22nd March 2019
AFCA current matters
Digital
Rebl Pty Ltd and Media Rebl Pty Ltd
Forex
Capital Trading Pty Ltd
AGM
Markets Pty Ltd
Berndale
Capital Securities Pty Ltd
Bestjet
Travel Pty Ltd (Bestjet)
Viewble
Media and the Shoppers Network
Gazette - Superannuation Industry
(Supervision) Act 1993
13/05/2019
Notice of Disqualification - Maria Scavo; Gary Scavo
09/05/2019
Notice of Disqualification - Viet Loc Tran; Vergel
Villapando; Judith Hawes; Glenn Hawes
08/05/2019
Notice of Disqualification - Michael Heaton-Harris; Mark
Whitton
Cases
Australian Securities and Investments Commission v Goldsky
Global Access Fund Pty Ltd & Ors [2019]
QSC 114
CORPORATIONS – FINANCIAL SERVICES – FINANCIAL
SERVICES PROVIDERS – LICENCE: WHEN REQUIRED – where s
911A of the Corporations Act 2001 (Cth) requires a person
to hold an Australian financial services licence
(AFSL) if a person carries on a financial services
business in this jurisdiction – where a company incorporated
in the United States of America, of which the fourth respondent was
managing director, applied to the applicant for class order relief
from the requirement to hold an AFSL – where the applicant
accepted the fourth respondent's reliance on class order relief
– where the first, second and third respondents, which were
also controlled by the fourth respondent, each operated a bank
account – where third parties deposited funds into the first,
second and third respondent's bank accounts – where none
of the first, second and third respondents held an AFSL –
where the fourth respondent was subsequently the subject of an
investigation by the United States Securities and Exchange
Commission – where the fourth respondent initially did not
notify the applicant of the investigation – whether the
first, second and third respondents carried on a financial services
business – whether the first, second and third respondents
were exempted from holding an AFSL
PROCEDURE – DECLARATIONS – APPROPRIATE FORM OF RELIEF -
DISCRETION OF COURT – OTHER CASES – where the applicant
requests the Court to make declarations that the first, second and
third respondent have contravened s 911A of the Corporations
Act 2001 (Cth) – whether it is an appropriate exercise
of the Court's discretion to make the declarations sought by
the applicant. Australian Securities and Investments Commission
Act 2001 Cth s 30; Corporations Act 2001 Cth s 9, s
21, s 761A, s 761C, s 763A, s 766A, s 766E, s 910A, s 911A
Gallop Reserve Pty Ltd v Matton Developments Pty Ltd &
Anor [2019] QSC
113
CORPORATIONS – INTERNAL ADMINISTRATION OF
CORPORATIONS – COMPANY OFFICERS – APPOINTMENT OF
COMPANY DIRECTORS – CONSEQUENCE OF DEFECTS IN APPOINTMENT OF
DIRECTORS –ESTOPPEL – ESTOPPEL BY CONDUCT –
RELIANCE –GUARANTEE AND INDEMNITY – ASSIGNMENT –
where the plaintiff entered into an agreement to provide litigation
funding to the first defendant –CORPORATIONS –
FINANCIAL SERVICES AND MARKETS – MARKET MISCONDUCT AND OTHER
PROHIBITED CONDUCT – MISLEADING, DECEPTIVE OR UNCONSCIONABLE
CONDUCT – where the plaintiff entered into an agreement to
provide litigation funding to the first defendant – where the
litigation settled with a substantial payment to the first
defendant – where an earlier debt owed by the first defendant
to a bank was assigned by deed to the plaintiff – where one
director of the first defendant, Kenward, executed the Deed of
Assignment on its behalf pursuant to a power of attorney –
whether the plaintiff engaged in misleading and deceptive conduct
or unconscionable conduct in relation to the execution of the Deed
of Assignment
CORPORATIONS – where the second defendant alleges that the
plaintiff knowingly assisted Kenward in breaches of fiduciary
duties under ss 180 and 182–184 of the Corporations Act
– where the second defendant alleges that the plaintiff
thereby acquired rights under the Deed of Assignment and litigation
funding agreement – where the second defendant contends that
the plaintiff should therefore be required to return funds received
under the litigation funding agreement to the first defendant
whether there was any breach of fiduciary duty by Kenward –
whether the plaintiff assisted in any fraudulent design to obtain
benefits for it
CORPORATIONS – CHARGES – SECURITY INTERESTS –
where the plaintiff acquired rights under a charge which the first
defendant had granted over its assets to secure its obligations
under a loan agreement with a bank unreasonable exercise of rights
pursuant to s 111 of the Personal Properties Securities Act
Legislation
Commonwealth
Act Compilation
Financial Sector (Transfer and Restructure) Act
1999
03/05/2019 - Act No. 45 of 1999 - An Act to provide for
transfers of business between some kinds of financial institutions,
to provide for transfers of shares and other interests in some
kinds of financial institutions, and to make provision in relation
to internal restructures within some groups of financial
institutions
Regulation
Banking,
Insurance, Life Insurance and Health Insurance (prudential
standard) determination No.1 of 2019
07/05/2019 - The key requirements of this Prudential
Standard are that an APRA-regulated institution and a Head of a
group must: maintain a risk management framework that is
appropriate to the size, business mix and complexity of the
institution or group, as relevant; maintain a Board-approved risk
appetite statement; risk management and a Board-approved business
plan
Federal
Court Amendment (Court Administration and Other Measures) Rules
2019
01/05/2019 - The Judges have agreed to amend the FCR 2011
by: 7. amending Division 33.3, consequential to changes made by the
Treasury Laws Amendment (Putting Consumers First –
Establishment of the Australian Financial Complaints Authority) Act
2018, in replacing the Superannuation Complaints Tribunal with the
Australian Financial Complaints Authority
This publication does not deal with every important topic or change in law and is not intended to be relied upon as a substitute for legal or other advice that may be relevant to the reader's specific circumstances. If you have found this publication of interest and would like to know more or wish to obtain legal advice relevant to your circumstances please contact one of the named individuals listed.