Regulation

ASIC licensing and banning powers beefed up

Recommendations of the 2016 ASIC Enforcement Review Taskforce that the regulator’s powers be strengthened have finally been put into legislation, with the passage of a bill last week that strengthens ASIC’s licensing powers and extends its banning powers. It also…

ACCC spells out Open Banking rules

Consumers will have an online “consumer dashboard” to allow them to manage their data consents when the Consumer Data Right in banking kicks off in July. Details of the dashboard are included in the rules for the Consumer Data Right…

Mortgage broker best interests duty bill passed

From July, mortgage brokers will have to comply with current responsible lending obligations and a new best interests duty. Responsible lending and best interests are not the same thing. According to the information memorandum accompanying the bill that was passed…

Industry pushes back against latest financial services reforms

Proposed annual fee renewal arrangements, the disclosure of “lack of independence” and a deferred sales model for add-on insurance are the most controversial aspects of a raft of changes to financial services law introduced in a draft bill last week…

Testamentary trust passes the test

A ruling of the Family Court of Australia has tested the effectiveness of using a testamentary trust to protect assets from claims arising from the breakdown of a marriage. A father established testamentary trusts for his son and daughter in…

Government to review LIC commissions

Financial advisers and stockbrokers may lose commissions on the sale of listed investment company (LIC) shares after the Government announced a consultation on the stamping fee exemption. Earlier this week Treasurer Josh Frydenberg said the Government would undertake a four…

ASIC sets out DDO ‘product governance framework’

The Australian Securities and Investments Commission has been working on the new design and distribution obligations over the summer, issuing draft guidelines that set out the “product governance framework” that issuers and distributors will have to put in place. Under…

Government clarifies which tax debts can be reported

The Government has followed up the passage of legislation allowing the tax office to release details of tax debts to credit reporting agencies, with the release of a tax administration declaration that spells out the taxpayers who will be affected…

Stricter criteria for AFS and credit licences

The Australian Securities and Investment Commission is calling on applicants for financial services and credit licenses to go through a checklist of minimum standards prior to applying, to avoid refusal. ASIC has released an overview of impacts on licensing and…

ASIC signs off on updated banking code

The Australian Banking Association’s updated Banking Code of Practice has cleared its final hurdle, with ASIC announcing yesterday that it has approved the changes. The revised code will commence on March 1 next year. A new Banking Code of Practice…