David Jacobson

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Treasury has released for public consultation exposure draft Corporations Amendment (Design and Distribution Obligations) Regulations 2019 to support the Treasury Laws Amendment (Design and Distribution Obligations and Product Intervention Powers) Act 2019. Background. The purpose of the Regulations is to extend the DDO regime by altering the products and persons in relation to which the DDO regime applies. The amendments: extend the DDO to additional persons; extend the DDO to additional products; and exclude…
Treasury has released for consultation draft legislation to implement recommendations of the ASIC Enforcement Review Taskforce Report relating to licensing, banning orders, search warrants and access to telecommunications intercept material. The draft legislation: Grants ASIC new powers in relation to the variation and cancellation of Australian Financial Services Licences and Australian Credit Licences; Strengthens ASIC’s licensing powers by replacing the AFS License requirement that a person be of ‘good fame and character’ with an on-going…
The Consumer Data Right (Authorised Deposit-Taking Institutions) Designation 2019 has been registered. Background. It is the next step towards Open Banking. The Treasury Laws Amendment (Consumer Data Right) Act 2019 amended the Competition and Consumer Act 2010 to establish a consumer data right. The purpose of the Consumer Data Right (Authorised Deposit‑Taking Institutions) Designation 2019 is to designate the banking sector as subject to the consumer data right. The banking data specified as information…
The Currency (Restrictions on the Use of Cash) Bill has been introduced into the House of Representatives. This Bill introduces offences for entities that make or accept cash payments or series of payments of $10,000 or more. Entity includes, among other things, individuals, bodies corporate, bodies politic, trusts and partnerships Cash is defined as physical and digital currency within the meaning of the AML/CTF Act. Payment is used in its broadest sense encompassing any transfer…
ASIC has used its product intervention power for the first time to prohibit from 14 September 2019 companies, and directors of those companies, from using a specific short term lending model that ASIC considers has resulted in, will result or is likely to result in significant detriment to retail clients. ASIC Corporations (Product Intervention Order—Short Term Credit) Instrument 2019/917 prohibits the provision of short term credit except in accordance with conditions which limit the total…
ASIC has announced that it has lodged an appeal to the Full Federal Court of Australia against the trial decision of Justice Perram rejecting ASIC’s allegations against Westpac Banking Corporation for contraventions of responsible lending provisions of the National Credit Act. Background. ASIC says that it considers that the Federal Court’s decision creates uncertainty as to what is required for a lender to comply with its assessment obligation and that it does not regard…
ASIC has announced that it has issued separate proceedings against the Bank of Queensland and Bendigo and Adelaide Bank concerning unfair contract terms in their small business loan contracts. These are the first actions since its Report 565 which set out the details of the changes made by the four major banks to remove unfair terms from their small business loan contracts of up to $1 million. ASIC contends that certain terms in these contracts…
Treasury has published for consultation a Proposal paper on reforms to the sale of add-on insurance products. The paper outlines the Government’s proposal for an industry-wide deferred sales model for add-on insurance products. It is proposed for the deferred sales model to apply to those insurance products that are offered or sold at the same time as when a consumer purchases the primary product or acquires finance for which the insurance covers associated risks. Add-on…
The ACCC has released its draft report for its customer loyalty schemes review. The review examined consumer and competition issues that are associated with consumer-facing customer loyalty schemes in Australia, including the way in which customer loyalty schemes collect, use and disclose consumer data. It includes financial services and insurance loyalty schemes. The ACCC is concerned about a range of business practices in the customer loyalty scheme industry which have the potential to cause widespread…