An update on the OTC derivative client money reforms: be ready for 4 April 2018

Uncategorized
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…
Read More
OTC electricity derivatives: Are your risk management policies up to scratch?

OTC electricity derivatives: Are your risk management policies up to scratch?

Financial Services
Today, we continue our discussion about AFSL obligations looking at OTC electricity derivatives.   By Dr. Drew Donnelly, Compliance Quarter. Last time we talked about the regulatory reforms to OTC derivative transactions that have occurred over the last five years or so in Australia. And in The AUSTRAC risk management tool: Are you meeting your obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006? we talked about risk management procedures in relation to the anti-money laundering and counter-terrorism regulatory regime. In today’s piece, our second article on the regulatory framework for derivatives in Australia, we discuss an Australian Securities & Investments Commission (ASIC) review of risk management policies and procedures for participants in the OTC electricity derivative market and look at a few of the areas identified in that…
Read More