October FinTech update: The new FinTech services and products to be trialled through the regulatory sandbox

October FinTech update: The new FinTech services and products to be trialled through the regulatory sandbox

Uncategorized
Several months ago, we discussed the Government’s announced expansion of the FinTech regulatory sandbox (https://compliancequarter.com.au/regulatory-changes/). It was proposed then to further reduce red-tape for businesses that wished to trial new financial technology (FinTech) or credit technology products. At that stage, the extent of that expansion was unknown. By Dr Drew Donnelly, Compliance Quarter. On 24 October 2017, the Government released draft legislation and regulations designed to implement that expanded regulatory sandbox. In today’s article we contrast the proposed new set of services and products with the set in the existing regulatory sandbox. This will be of interest to anyone considering trialling a new fintech or credit technology product. Note, this is a draft amendment bill and draft regulations and the Treasury seeks your feedback on them up until 3 November…
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A poll to pass a resolution not to appoint an Embedded Network Manager– Caravan park operators take note

A poll to pass a resolution not to appoint an Embedded Network Manager– Caravan park operators take note

AU Energy Compliance
The AEMC has made a number of rule changes which come in to force on 1 December 2017. The changes relate to embedded networks and metering arrangements. Two major new roles will be introduced under the rule changes, an Embedded Network Manager (ENM) and a Metering Coordinator (MC). By Anne Wardell, Compliance Quarter.  The regulator has made certain exemptions for caravan parks, holiday parks, residential land lease parks and manufactured home estates (caravan parks). Operators of caravan parks who operate an embedded network will often hold an R4 retail exemption and an NR4 network exemption, both of these exemptions apply specifically to caravan parks. Apart from the current conditions imposed under the exemptions, there are a number of state based Acts which impose restrictions on how much a caravan park…
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OAIC Annual Report 2017: Three developments of note for businesses that deal with personal information

OAIC Annual Report 2017: Three developments of note for businesses that deal with personal information

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The Office of the Australian Information Commissioner (OAIC) released its Annual Report last month. It summarises the work of the OAIC over the 2016-2017 year, and indicates areas of future focus. Today we look at three areas developments signalled in the Annual Report which may affect any business that deals with personal information. Ongoing implementation of the mandatory Notifiable Data Breach (NDB) regime We have talked about the Privacy Amendment (Notifiable Data Breaches) Act 2017 before (https://compliancequarter.com.au/business-prepared-roll-notifiable-data-breaches-scheme/) This new legislation establishes a mandatory Notifiable Data Breaches (NDB) scheme that will apply to federal government agencies and businesses covered by the Privacy Act 1988 (the Privacy Act)[1]. This new legislation means that from 22 February 2018, organisations covered by the Privacy Act will have to notify individuals, where there is a…
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The National Energy Guarantee (NEG)—what we know so far

AU Energy Compliance
On 17 October, the Commonwealth Government announced that it intends to introduce a ‘National Energy Guarantee' (NEG) scheme.[1] The scheme would introduce reliability and emissions obligations for energy retailers with the goal of delivering more reliable and lower emissions generation, each year. By Dr Drew Donnelly, Compliance Quarter. In today’s piece we describe the new policy and how it may be operationalised. Note, at this stage the National Energy Guarantee is Commonwealth Government policy, but it is not law and there are several steps that need to be taken before it could be finalised (we explore this in the final section of the article). The National Energy Guarantee The reliability obligation would be set by the Australian Energy Market Commission (AEMC) and Australian Energy Market Operator (AEMO) and would set…
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How network costs drive price in the National Electricity Market: The latest from the ACCC Retail Electricity Pricing Inquiry

How network costs drive price in the National Electricity Market: The latest from the ACCC Retail Electricity Pricing Inquiry

AU Energy Compliance
We have looked at a range of reports, inquiries and policies over the last few months which are, at least in part, a response to the relative rise in electricity prices in recent years. These include: The Finkel Review (https://compliancequarter.com.au/tag/finkel-review/). This was an independent review, commissioned by the federal government which, among other things, recommended a clean energy target and obligations on new generators to maintain voltage and frequency; AEMC’s embedded networks review (https://compliancequarter.com.au/embedded-networks/), which looked at improving access to the retail market for embedded network customers; The abolishment of ‘Limited Merits’ Review (https://compliancequarter.com.au/merits-review/). This new legislation will eliminate the routine application of network operators for a review of the National Energy Regulator (NER) revenue and price determinations; The National Energy Guarantee (https://compliancequarter.com.au/national-energy-guarantee-mean-energy-industry/), which, among other things seeks to increase…
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National Energy Guarantee – What does it mean for the energy industry?

AU Energy Compliance
The Turnbull Government yesterday announced that it would accept the recommendation of the Energy Security Board (ESB) for the introduction of a new National Energy Guarantee (NEG).  The NEG will create a dual reliability and emissions guarantee. By Anne Wardell, Compliance Quarter. The main focus of the NEG appears to be the reduction of household energy bills, with the emissions reduction scheme taking a back seat. The assumption that household energy bills will be reduced is based on a lot of hypotheticals which may or may not occur. Commentators like Laura Tingle, Australian Financial Review, have questioned whether the assumptions underpinning the recommendation will operate effectively[1]. Interestingly she concludes her opinion piece with the following observation: ‘The irony is that their market dominance through vertical integration will probably make it…
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All you need to know about the abolition of Limited Merits Review: Six Q & A for the Australian energy industry.

All you need to know about the abolition of Limited Merits Review: Six Q & A for the Australian energy industry.

AU Energy Compliance
On 16 October, the federal Government passed the Competition and Consumer Amendment (Abolition of Limited Merits Review) Bill 2017 (the new legislation) which removes the right of Network Service Providers (NSPs) to apply for Limited Merits Review (LMR) of most of the decisions of the Australian Energy Regulator (AER). By Dr Drew Donnelly, Compliance Quarter. In today’s article, we provide six questions and answers on the new legislation with a focus on the effect this will have on those who will be most directly affected; Network Service Providers. What is Limited Merits Review? While the new legislation also abolished LMR under the National Gas Law, our focus is on the abolition of LMR in relation to the National Electricity Law (NEL), as this has been by far the most common…
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An update on the OTC derivative client money reforms: be ready for 4 April 2018

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A few months ago, in The low-down on the retail client money reforms for OTC derivatives, we looked at client money reforms which had just been passed into law. Last week, the Australian Securities & Investments Commission (ASIC) finalised its Client Money Reporting Rules (the rules) which will come into force from 4 April 2018. These rules set out the specific record-keeping, reconciliation and reporting requirements for Australian financial services (AFS) licensees with respect to over-the-counter (OTC) derivative client money.[1] By Dr Drew Donnelly, Compliance Quarter. In today’s update we provide a quick summary of the finalised rules and highlight some key amendments introduced by ASIC in response to sector consultation. Recap on the client money reforms As we set out in our previous article, the client money reforms were…
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Banking Executive Accountability Regime Exposure Draft – Part Two

Banking Executive Accountability Regime Exposure Draft – Part Two

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Last time in The Banking Executive Accountability Regime (BEAR) Exposure Draft - Part One we talked about the new role of an ‘accountable person’ under the proposed Banking Executive Accountability Regime (BEAR), as described in the Government’s recent exposure draft Bill. In today’s piece, part two, we look at the what happens when an accountable person, or the bank itself, fail to fulfil its obligations under BEAR. By Dr Drew Donnelly, Compliance Quarter   Existing Powers of APRA The Australian Prudential Regulation Authority (APRA) already has a range of powers that it uses to ensure Authorised Deposit-Taking Institutions (ADIs) (including banks) fulfil their responsibilities under the prudential supervision requirements. APRA’s current powers include: the power of direction (section 11CA of the Banking Act 1959), which enables APRA to require a…
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Revised Compliance procedures and guidelines released for review

Revised Compliance procedures and guidelines released for review

AU Energy Compliance, Uncategorized
By Anne Wardell, Compliance Quarter The Australian Energy Regulator (AER) has released a consultation draft of proposed new AER Compliance Procedures and Guidelines. The amendments relate to the new reporting obligations introduced in June 2017.  Interested parties are invited to make written submissions on the draft Guideline by 10 November 2017. The Notice of Draft Instrument (Notice) states that the 'changes are designed to address inefficiencies by reducing the time and effort required by businesses in preparing reports and to improve the overall quality of reporting. The draft notice provides stakeholders with the opportunity to comment on amendments before a final decision is made. The proposed amendments seek to:  improve the functionality of the reporting template to include pre-populated data so as to facilitate completion of the form in a…
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