asic Archives

May102018 by Connor JamesNo Comments

Increased penalties for white-collar crime are coming

Last month, in the midst of hearings for the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry (the Royal Commission), the Commonwealth Government (the Government) announced increased penalties for corporate and financial misconduct.[1] These were not a direct response to the Royal Commission, but rather a response to the Australian Securities & Investments Commission (ASIC) Enforcement Review Taskforce (the taskforce).[2] Then on May 4, the Government announced a range of changes as part of its response to the Senate Economics References Committee (the Committee) inquiry into white-collar crime.[3] We take a look at the increased penalties for white-collar crime. Following on from our recent discussion of compliance in the corporate and financial services area (in particular see https://www.compliancequarter.com.au/six-questions-every-director-should-be-asking-about-compliance/ and https://www.compliancequarter.com.au/the-importance-of-culture-not-spend-in-compliance/), it is essential that all corporations and…

Apr62018 by Connor JamesNo Comments

ASIC releases updated guidance on client money

Financial Services

ASIC has this week released updated guidance for Australian financial services (AFS) licensees that hold client money for trading in over-the-counter (OTC) derivatives. By Sara Le Breton, Compliance Quarter. ASIC Client Money Guidance Update The release of the updated guidance coincides with the start of ASIC's Client Money Reporting Rules 2017 (client money reporting rules) and other client money reforms on 4 April 2018 enacted under the Treasury Laws Amendment (2016 Measures No. 1) Act 2017 and the Corporations Amendment (Client Money) Regulations 2017. The updates can be found in ASIC Regulatory Guide 212 ‘Client money relating to dealing in OTC derivatives ‘ (RG 212) and INFO Sheet 226 ‘Complying with the ASIC Client Money Reporting Rules 2017’ which have both been updated to reflect the changes to the law.…

Jan82018 by Connor JamesNo Comments

New Design and Distribution Obligations for Financial Products

Uncategorized

On 21 December 2017, the Government began consultation on the exposure draft of a new law (the draft Bill) which will require most businesses that issue financial products to follow new rules in designing and distributing those products. The goal of these changes is to support consumers in choosing the financial products that are most appropriate for them. In today’s article, part one of two, we look at the new design and distribution obligations while in the next article we will look at the proposed Australian Securities & Investments Commission (ASIC) intervention powers also contained in the draft Bill. [caption id="attachment_2825" align="aligncenter" width="640"] Photo by Ramiro Mendes on Unsplash[/caption] By Dr Drew Donnelly, Compliance Quarter. Background The Financial System Inquiry (FSI) found that the existing regulatory framework for financial products…

Jan82018 by Connor JamesNo Comments

ASIC’s New Product Intervention Power

Financial Services

Last time we talked about the Government’s introduction of design and distribution obligations for financial products in a draft Bill currently undergoing consultation. In today’s article, part two on the draft Bill, we discuss the Australian Securities & Investments Commission’s proposed new product intervention power, also contained in the draft Bill. [caption id="attachment_2821" align="aligncenter" width="640"] Photo by Victoria Heath on Unsplash[/caption] By Dr Drew Donnelly, Compliance Quarter. Background As mentioned in our previous piece, the existing regulatory framework for financial products relies extensively on disclosure for customer protection. This limitation is compounded by the fact that the Australian Securities & Investments Commission (ASIC) is only empowered to intervene where there has been a breach or suspected breach of the law. This has meant that, in various cases in the past,…

Oct262017 by Connor JamesNo Comments

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…

Jul242017 by Ben WilsonNo Comments

The Crowd-funding Act and changes to the Australian Market Licence regime: The latest ASIC consultation paper

Uncategorized

Most businesses that facilitate the trading of assets or financial instruments (‘market venues’) are required to hold an Australian Market Licence (AML), and are subject to an accompanying regulatory regime. The Corporations Amendment (Crowd-sourced Funding) Act 2017 (the CSF Act), passed into law in March, creates a bespoke regulatory regime for crowd-sourced funding. At the same time, the CSF Act amends the Corporations Act 2001 so that some ‘lesser risk’ market venues can be exempted from some obligations under the AML regulatory regime. By Dr. Drew Donnelly, Compliance Quarter On 20 July, The Australian Securities & Investments Commission (ASIC) released a consultation paper an exemption framework and inviting comment. So, what exactly is ASIC proposing? The CSF Act The key purpose of the CSF Act is to allow small unlisted…

Jul122017 by Ben Wilson1 Comment

Are You Producing The Correct Type Of Product Disclosure Statement?

Financial Services

Last week, the Australian Securities & Investments Commission (ASIC) announced that it is extending an existing form of regulatory relief for three types of financial product: multi-funds, superannuation platforms and hedge funds. Businesses which offer these financial products will continue to be exempt from the requirement to produce shorter product disclosure statements (shorter PDSs) until (at least) June 2018. By Dr. Drew Donnelly, Compliance Quarter As a key tool for protecting consumers, it is essential that any business offering financial products is complying with product disclosure requirements. Today we ask: what is a standard PDS, what is a shorter PDS, which businesses are required to produce the shorter PDS, and which are exempt? The standard PDS Recently, we looked at new client money protections for retail clients investing in off-the-counter…

Jun192017 by Connor JamesNo Comments

The Australia-Hong Kong Fintech Agreement: Q & A

Uncategorized

By Dr Drew Donnelly, Compliance Quarter. On 13 June, The Hong Kong Securities and Futures Commission (SFC) and Australian Securities & Investments Commission (ASIC) signed a Cooperation Agreement on financial technology (fintech or FinTech). This agreement aims to facilitate the sharing of information about fintech developments and to assist fintech firms looking to operate in one another's jurisdictions. Last month, we discussed the expansion of the ‘regulatory sandbox’ for fintech in Australia through ASIC’s Innovation Hub. Hong Kong has a similar regulatory sandbox and this agreement will mean that the respective hubs will be able to refer businesses from their own jurisdiction to the other for advice and support. In today’s article, we suggest three questions you might have about the agreement and provide our answers based on the…