Regulation

Insurer kept selling product almost two years after admitting compliance breach

The Life Code Compliance Committee has issued its first sanction under the Life Insurance Code of Practice, calling out OnePath Ltd for failing to implement agreed remedial action. OnePath reported a significant breach of the Code and agreed in November…

Banks warned to stop unauthorised transactions

The Australian Financial Complaints Authority (AFCA) has demanded that banks and other financial institutions implement better systems to detect fraudulent transactions, as a large number of complaints were received. The formation of AFCA coinciding with the Hayne Royal Commission resulted…

Lenders dig in over responsible lending changes

The banking industry is opposed to key parts of ASIC’s proposed overhaul of its guidance on responsible lending conduct, criticising it as a move away from principles-based regulation to a more prescriptive approach, and claiming it will disadvantage small financial…

Fintechs get a bigger sandbox

ASIC will be given greater flexibility to make decisions about how exemptions operate under its regulatory sandbox framework. The Government last week introduced a bill, Treasury Laws Amendment (2018 Measures No.2) Bill 2019, to enhance the sandbox regime, allowing more…

Insurers and super fund trustees will also be ‘accountable persons’

The Australian Prudential Regulation Authority’s planned “accountable person” rules, which it detailed in a letter to banks last week, will be extended to insurers and superannuation licensees as the reach of the Banking Executive Accountability Regime is widened. APRA says…

Regulating Libra coin

Facebook will attract the attention of several financial regulators when it makes its cryptocurrency, Libra coin, available here, according to a lawyer specialising blockchain and cryptocurrency. In a note to client, Piper Alderman partner Michael Bacina said: “In the past…

Financial sector told to step up on climate

The Australian Prudential Regulation Authority says it is embedding the assessment of climate risk into its ongoing supervisory activities, and it wants the financial services industry to do more to identify risks and develop mitigation strategies. According to an APRA…

Inactive super account deadline looms

The Australian Taxation Office has issued an alert to superannuation fund trustees that they need to identify inactive low-balance accounts and be ready to report account details to the ATO. Tax office deputy commissioner, superannuation and employer obligations, James O’Halloran…

Into the great unknown: Protecting Your Super

A surprisingly high proportion of inactive super fund members are opting to keep their insurance, as the Protecting Your Super reforms approach. The chief operating officer of NGS Super, Angie Mastrippolito, says the fund is looking at a 20 per…

AFCA to name institutions in determinations

In a significant departure from the practices of its predecessor organisations, the Australian Financial Complaints Authority plans to identify financial institutions in its published decisions. AFCA has released a consultation paper and draft rules setting out its plan, which it…