Nov292017 by Steven Findley1 Comment
Is it time we had an energy sandbox to encourage innovation?

Is it time we had an energy sandbox to encourage innovation?

AU Energy Compliance
Should we be looking to collaborate with the energy industry regulators and push for an energy sandbox that will foster innovation into the industry? By Steve Findley, Compliance Quarter.  It has long been the case that, in a similar way to the banking industry, there are many barriers to entry for those looking to become an energy retailer. Recently we have taken enquiries with a number of technology-focused entrants looking to disrupt the industry. This poses the question: Should the regulators be providing a regulatory "energy sandbox" to allow new-to-market entrants, or tech startups, an opportunity to test their business models and help encourage innovation in the industry? The energy regulators generally maintain good relationships with retailers and some of the collaboration and support they provide to retailers gives them…
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Nov202017 by Connor James1 Comment

1 July 2018: Are you getting prepared for the Banking Executive Accountability Regime (BEAR)?

Financial Services
The Banking Executive Accountability Regime (BEAR) is shaping up to be the most significant piece of business-related legislation hitting this year. We have discussed the details of these reforms on a few occasions: Budget 2017 and financial services: an opening for the minnows and a warning for the sharks (https://compliancequarter.com.au/budget-2017/); The Banking Executive Accountability Regime (BEAR) Exposure Draft- Part One (https://compliancequarter.com.au/bear_part_1/); Banking Executive Accountability Regime Exposure Draft – Part Two (https://compliancequarter.com.au/banking-executive-accountability-regime-exposure-draft-part-two/). Photo by Scott Webb on Unsplash By Dr Drew Donnelly, Compliance Quarter. Since we discussed it last, the Treasury Laws Amendment (Banking Executive Accountability and Related Measures) Bill 2017 (the Bill) has been introduced to Parliament, passed through its initial stages in the House of Representatives, and been referred to the Senate Economics Legislation Committee (the Committee). The Committee has received public…
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Nov202017 by Connor JamesNo Comments

How might smart contracts fit into your 2018 compliance program?

Uncategorized
‘Smart contracts’ have not yet taken off as a common commercial tool in Australia. In light of this, consideration of the legal, compliance and regulatory implications of smart contracts involves a lot of guesswork. However, with the proliferation of digital currencies, and blockchain technologies, you may soon be asked to use this technology or may wish to trial such a product yourself. In today’s piece, we look at smart contracts definitions, their legal status, and reflect on some recent regulatory changes that might affect your use of smart contracts. Photo by Matt Barrett on Unsplash By Dr Drew Donnelly, Compliance Quarter Smart contracts and vending machines Smart contracts are not (thus far) creatures of regulation or law, and thus do not admit of a universal definition. In recent times, the term has been…
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Nov172017 by Steven FindleyNo Comments
AUSTRAC’s regulatory approach in 2017

AUSTRAC’s regulatory approach in 2017

Financial Services
On November 13, the Australian Transaction Reports & Analysis Centre (AUSTRAC) commented on the civil proceedings that it successfully brought against Tabcorp under Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) legislation (see here). In those statements, AUSTRAC CEO, Nicole Rose, summed up AUSTRAC’s approach to compliance succinctly: AUSTRAC will continue to collaborate with industry to strengthen the financial sector against serious financial crime and reduce regulatory burden where possible, but we will continue to take strong action against those companies who break the law where appropriate In today’s article, we look at how AUSTRAC’s risk-based approach to compliance has informed its regulatory and enforcement program over the 2016-2017 year, as evidenced in its 2017 Annual Report. This provides a good indication as to AUSTRAC’s future focus. Risk-based compliance A risk-based approach…
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Nov112017 by Connor James1 Comment
Transitional Compliance for Embedded Network Managers (ENM): The Key Facts

Transitional Compliance for Embedded Network Managers (ENM): The Key Facts

AU Energy Compliance
The Australian Energy Regulator (AER) has just announced that a transitional compliance approach to the new embedded network manager (ENM) obligations that are coming into force on 1 December (https://www.aer.gov.au/communication/aer-announces-transitional-compliance-approach-embedded-network-manager-appointment). [caption id="attachment_2595" align="aligncenter" width="640"] Photo by Khara Woods on Unsplash[/caption] By Dr Drew Donnelly, Compliance Quarter Below we set out some key things you need to know. The ENM role The ENM is a new role that has been created to support customers in embedded networks transferring from ‘off-market’ to ‘on-market’ and vice versa: That is, embedded network customers switching between electricity supply from an exempt ‘on-seller’ and an authorised retailer. Key components of the ENM role include (but are not limited to): registering a child NMI (National Metering Identifier) to customers in embedded networks, and; creating and updating NMI…
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Nov92017 by Connor JamesNo Comments

The proposed new dispute resolution obligations for exempt sellers

AU Energy Compliance
We recently summarised the changes proposed in the new draft retail exempt selling guideline (the draft guideline) issued by the Australian Energy Regulator (https://compliancequarter.com.au/aer-seeking-feedback-revised-draft-retail-exempt-selling-guideline/). By far the most significant change proposed is to the dispute resolution obligations of exempt sellers with respect to residential customers. In this piece, we take a deeper look at the dispute resolution changes for exempt sellers as proposed in the latest draft guideline. Background The National Energy Retail Law (Retail Law) requires all energy sellers to either hold a retailer authorisation or a valid exemption. A common situation where an exemption may apply is where an owner purchases energy from a retailer and then 'on-sells' that energy to tenants. That owner, if granted an exemption would be an ‘exempt seller’. Guidelines, such as the draft…
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Nov62017 by Steven FindleyNo Comments
The Amending WIC Act: Upcoming regulatory changes for water infrastructure in New South Wales (including recycled water, stormwater and wastewater)

The Amending WIC Act: Upcoming regulatory changes for water infrastructure in New South Wales (including recycled water, stormwater and wastewater)

Uncategorized
Last week we talked about the Independent Pricing and Regulatory Tribunal NSW (IPART) Review of Compliance and Enforcement Policy (read the full story here). We mentioned there that a key compliance and enforcement responsibility of IPART relates to Water Industry Competition Act 2006 (WIC Act) licensing. [caption id="attachment_2555" align="alignnone" width="640"] WIC Act[/caption] Today, we look at the upcoming reform of WIC Act licensing contained in the Water Industry Competition Amendment (Review) Act 2014 No 57 (the ‘Amending WIC Act’). This amending Act, while passed into law in 2014, does not come into effect until an associated regulatory framework is ready to be enforced. Last month IPART gave an information session on progress to date, with the scheme intended to come in to effect in 2019. Today we summarise the key…
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Nov62017 by Steven FindleyNo Comments
How minority shareholders might take action against corporation wrongdoing

How minority shareholders might take action against corporation wrongdoing

Uncategorized
In the past, we have looked at some of the existing powers and proposed powers that the Australian Securities & Investments Commission (ASIC) has with respect to corporate wrongdoing (see our previous article here). Today we take a look at a remedy which can be taken by minority shareholders and members of a company when the company’s affairs have been conducted in an “oppressive, unfairly prejudicial or unfairly discriminatory manner” against members of the company. The so-called ‘oppression remedy’. This provides an option for redress for minority shareholders even where some conduct is approved or instigated by majority shareholders. [caption id="attachment_2551" align="alignnone" width="640"] minority shareholders[/caption] Note, these introductory notes do not constitute legal advice. For advice on your particular situation, please get in touch with us and we can refer…
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Nov62017 by Steven FindleyNo Comments
The Australia/NZ FinTech collaboration: Three things to bear in mind if offering FinTech services across the Tasman

The Australia/NZ FinTech collaboration: Three things to bear in mind if offering FinTech services across the Tasman

Uncategorized
On 19 October, the Australian Securities & Investments Commission (ASIC) and New Zealand’s Financial Markets Authority (FMA) “re-affirmed” a commitment to collaboration and cooperation on the expanding opportunities in FinTech collaboration and innovation. [caption id="attachment_2545" align="alignnone" width="640"] fintech-collaboration[/caption] However, in that media release, there is little detail on what practical opportunities this may provide for Australian business. In today’s article, we describe how this announcement might present a change for Australian businesses and point out three things that an Australian business needs to take into account when considering whether to offer a FinTech service in New Zealand. Fintech collaboration - What’s changed? The ASIC/FMA announcement is more than just a “re-affirmation” of the existing relationship between the two regulators. The existing Memorandum of Understanding between the regulators in both countries…
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Nov62017 by Steven FindleyNo Comments
Innovative demand response programs being trialled for the upcoming summer

Innovative demand response programs being trialled for the upcoming summer

AU Energy Compliance, Uncategorized
On 11 October, the Australian Renewable Energy Agency (ARENA) and the Australian Energy Market Operator (AEMO) jointly announced that 10 pilot projects have been awarded funding under the new ‘demand response initiative’. This is an initiative designed to manage electricity supply during times of intense pressure on the system. [caption id="attachment_2541" align="alignnone" width="640"] Demand Response Initiative[/caption] Today we take a look at some of the innovative and varied response programs that are being trialled through this initiative including programs offered being provided by energy distributors, retailers and customers. Background to the demand response initiative The Independent Review into the Future Security of the National Electricity Market (the ‘Finkel Report’), released earlier this year, emphasised that the continuing retirement of older energy generators will place increasing pressure on the National Energy…
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