Bright Law Blog

Blog Authors

Latest from Bright Law Blog

The Treasury Laws Amendment (AFCA Cooperation) Regulations 2019 has been registered to require all Australian Financial Complaints Authority (AFCA) members including Australian Financial Services Licence holders, Australian Credit Licence holders, and Registrable Superannuation Entities to co-operate with AFCA in resolving complaints under the AFCA scheme to which they are a party before, on or after 6 April 2019. Regulation 7.6.03C has been inserted into the Corporations Regulations requiring Australian Financial Services Licence holders to take…
The Australian Prudential Regulation Authority (APRA) has published its new Enforcement Approach which sets out how APRA will approach the use of its enforcement powers to prevent and address serious prudential risks and to hold entities and individuals to account. The new Enforcement Approach is based on the results of its Enforcement Review which recommended:• APRA adopting a “constructively tough” appetite to enforcement and setting it out in a board-endorsed enforcement strategy document;• ensuring APRA supervisors are…
I have added a new video on the 2019 version of the Banking Code of Practice to my website. At 25 minutes long it provides an overview of the new Code and the issues raised by the Financial Services Royal Commission. The Banking Code of Practice is due to commence on 1 July 2019 for all members of the Australian Banking Association. You can watch it here.…
The Australian Banking Association (ABA) has issued a consultation paper on a new industry guideline on supporting vulnerable customers, to complement the new Banking Code of Practice. Background. The ABA says it is working with ASIC and the ACCC to amend the Banking Code to incorporate the Financial Services Royal Commission recommendations for changes to Chapter 14 of the Code about vulnerable customers. The paper discusses defining “vulnerable customers”. It notes that any definition…
In a recent speech APRA Chair Watne Byres made the following comments about executive remuneration and the Banking Executive Accountability Regime (BEAR): “In the context of executive remuneration, I think there are a few aspects where the direction is pretty clear. The first is metrics. The current system of executive remuneration based largely on the achievement of financial targets, including long-term incentives based primarily if not entirely on relative TSR [Total Shareholder Return], will have…
ASIC has published Report 617 Survey of marketplace lending providers: 2017–18 which gives an overview of marketplace lending platforms structured as managed investment schemes. The report is based on the findings from ASIC’s survey of 13 marketplace lending providers for the 2017–18 financial year. Key findings from the 2017–18 survey relating to investment included: • the surveyed marketplace lending sector now holds more than half a billion dollars in funds under management;• The number of…
ASIC has published Report 617 Survey of marketplace lending providers: 2017–18 which gives an overview of marketplace lending platforms structured as managed investment schemes. The report is based on the findings from ASIC’s survey of 13 marketplace lending providers for the 2017–18 financial year. Key findings from the 2017–18 survey relating to investment included: • the surveyed marketplace lending sector now holds more than half a billion dollars in funds under management;• The number of…
As Parliament will most likely not resume before a May election, not all proposed changes to financial services and credit regulation have been passed. Bills that were introduced but not passed by the Parliament before the election is called will lapse. But some significant Bills were passed in the last days of the Parliament; some have already received Royal Assent and commenced and others are awaiting Royal Assent. Bills passed Treasury Laws Amendment (Design and
The Treasury Laws Amendment (Design and Distribution Obligations and Product Intervention Powers) Bill 2019 was passed by Parliament on 3 April 2019 and is awaiting Royal Assent. Background. The Bill amends the Corporations Act, the National Consumer Credit Protection Act (the Credit Act) and the Australian Securities and Investments Commission Act (the ASIC Act) to introduce design and distribution obligations (DDO) in relation to financial and credit products and to introduce a product intervention…
The Treasury Laws Amendment (Improving Accountability and Member Outcomes in Superannuation Measures No. 1) Bill 2019 was given Royal Assent and commenced on 5 April 2019 after being passed by both Houses with amendments. The Act contains significant regulatory changes to the Superannuation Industry Supervision Act including two recommended by the Financial Services Royal Commission. Penalties for contravening covenants The amendments allow civil and criminal penalties to be imposed on trustees of superannuation funds and…