Regulation

APRA’s relaxation of lending standards welcomed

The Australian Prudential Regulation Authority’s plan to relax the rules for home lending, with the removal of the serviceability interest rate floor, has been welcomed as a “sensible” move that will increase borrowing capacity. APRA announced yesterday the proposed removal…

Investment ‘product of the decade’ worries regulators

As far as Robert Taylor is concerned, exchange traded funds are “the product of the decade”, and that worries him. Taylor chairs the committee on investment management at the International Organisation of Securities Commissions, which is currently doing a study…

AFCA’s comparative reporting plan ‘inadequate’

The Australian Financial Complaints Authority has been called on to sharpen aspects of its proposed comparative reporting model, including a more comprehensive “business sizing metric” and more information on the outcomes of disputes. AFCA has issued a consultation paper to…

ATO unhappy with SMSF reporting

The Australian Taxation Office has warned that it is seeing “many errors” in reports it receives from self-managed super fund trustees relating to event-based reporting. Under event based reporting rules, which took effect in July last year, SMSFs are required…

More super industry regulation on the way

Superannuation industry practices have improved since the introduction of the Stronger Super reforms in 2013 but not enough not enough to keep up with the “heightened expectations” of members, regulators and the broader community. In a review of the superannuation…

Direct insurance market due for a shake-up

If direct selling of life insurance is to survive the aftermath of the Hayne Royal Commission, product design will have to change and insurers will have to adapt their distribution networks. Possible changes include greater reliance on comparison sites as…

Mandatory CCR bill lapses but big banks to stay the course

The big banks will continue with their comprehensive credit reporting programs, even though the bill that would have required them to do so lapsed last week when the election was called. This is the confident prediction of the Australian Retail…

Product providers put on notice: start DDO reviews now

Financial services companies have been put on notice to start reviewing their products to determine how they will operate under new design and distribution obligations and ASIC’s product intervention powers. In a note to clients, King & Wood Mallesons partner…

Planning for consumer data rights goes ahead

The Australian Competition and Consumer Commission will push ahead with its planned Open Banking trial, despite the fact that the bill setting out consumer data rights has lapsed. The government introduced Treasury Laws Amendment (Consumer Data Right) Bill 2019 in…

Super contribution rules relaxed for older Australians

The main piece of superannuation news revealed on Budget day was actually announced by the Treasurer before the Budget speech. It included three measures to help older Australian contribute more to their super – relaxing the contribution work test, increasing…