banking Archives

Jun82018 by Alex SilcockNo Comments

Fintech and Regtech Developments – March, April, May 2018

We last summarised regulatory changes for financial and regulatory technology (fintech and regtech) in February.[1] Since then there have been a bunch of exciting developments including the Inaugural RegTech Association’s #ACCELERATERegTech 2018 event[2] and the regulatory approval of a new challenger bank in Australia.[3] We summarise some of the other important developments over the last few months below. Photo by Samuel Ferrara on Unsplash By Dr Drew Donnelly, Regulatory Specialist, Compliance Quarter Open Banking Review and the Consumer Data Right We mentioned in our February update that Treasury was consulting on the final recommendations of the Open Banking Review. The submissions that were received can be viewed at https://treasury.gov.au/consultation/c2018-t247313/. In response to both the Open Banking Review and the Productivity Commission’s Inquiry Report Data Availability and Use, the Commonwealth Government has announced that…

Apr102018 by Connor JamesNo Comments

What is a small, medium or large ADI? Latest BEAR Update

Financial Services

The Banking Executive and Accountability Regime (BEAR) was passed into law in February of this year. We have talked about his law change several times before (see https://www.compliancequarter.com.au/1-july-2018-getting-prepared-banking-executive-accountability-regime-bear/). Today we look at the latest consultation from the Treasury consequent to that law change. This consultation looks at how the size of authorised deposit-taking institutions (ADIs) are to be defined for the purposes of BEAR. [caption id="attachment_4024" align="aligncenter" width="640"] Photo by Matthias Goetzke on Unsplash[/caption] By Dr Drew Donnelly, Compliance Quarter. BEAR Update - Legislative Instruments under the BEAR The BEAR, like many Acts of Parliament, sets out a range of matters to be determined by future determination of Ministers or regulatory bodies. The BEAR provides that the relevant Minister (I.e. the Treasurer), as well as the Australian Prudential Regulation Authority…

Oct162017 by Connor JamesNo Comments

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…

Oct132017 by Connor JamesNo Comments

The Banking Executive Accountability Regime (BEAR) Exposure Draft- Part One

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In May we talked about the Government’s Budget commitment to a new Banking Executive Accountability Regime (BEAR) in Budget 2017 and financial services: an opening for the minnows and a warning for the sharks. We talked there about proposals requiring registration of banking executives, the reining in of executive bonuses and disqualification for poor behaviour. These proposals require legislation in order to amend the Banking Act 1959 and the Treasury consulted on an ‘exposure draft’ of that legislation at the end of last month (September). Today is the first part of a two-part examination of that exposure draft (henceforth all section references are to that exposure draft Bill). Our focus today is on the new concept of an ‘accountable person’ which will be introduced in order to hold banking executives…

Jul282017 by Ben WilsonNo Comments

An open banking regime for Australia: July fintech update

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On July 20, the Government announced that an independent review has been set up to consider the best process for implementing an open banking data regime in Australia. Open banking requires banks to share product and customer data with customers and, with their consent, third parties. By Dr. Drew Donnelly, Compliance Quarter An open banking regulatory regime is a key part of the Government’s financial technology (fintech) commitments, and something that we have written about before. So far, the Government has established a review panel and released a terms of reference. An issues paper for public comment will be released in due course, but in the meantime, it would be useful to think about the key areas signposted in the terms of reference, in light of the Productivity Commission’s Inquiry…

May152017 by Connor JamesNo Comments

Budget 2017 and financial services: an opening for the minnows and a warning for the sharks

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Last week we talked about the Government’s new rules for temporary working visas. On 9 May, the release of Federal Budget 2017, the Government filled in some key details of this initiative – including the hefty new levy of $1200 to $1800 (depending on the size of the business) for each temporary visa sponsored. This money will go into a ‘Skilling Australians’ fund which a state or territory government will be able to draw on in training new apprentices. Today we want to clarify a host of changes that have been announced for the financial services sector. In Budget 2017, the Government signalled reform of the financial services sector, especially increased competition, as a key lever for strengthening the Australian economy. Below we highlight four key changes that should make…