On this version, we think about ASIC’s new steering on crypto-asset licensing and market regulation, new and up to date APRA FAQs on a variety of issues, draft laws on technology-neutrality legal guidelines, and attention-grabbing developments related to monetary advisors, and rather more.

 

Monetary merchandise

CCIV invoice launched into Parliament

On 25 November, the Company Collective Funding Car Framework and Different Measures Invoice 2021 was launched into the Commonwealth Parliament.

In asserting the introduction into Parliament, the Assistant Treasurer, Michael Sukkar, stated the laws will supercharge worldwide funding into Australia’s fund administration trade.

ASIC consults on client remediation draft steering

On 17 November, ASIC launched a draft up to date and expanded regulatory information to seek the advice of on the way in which licensees ought to conduct remediations to return cash owed to customers.

Session Paper 350 Shopper remediation: Additional session and the draft regulatory information can be found for evaluation. Session closes on 11 February 2022.

ASIC proposes extension to CFD product intervention order

On 18 October, ASIC printed a session paper looking for suggestions on a proposal to increase its product intervention order imposing circumstances on the problem and distribution of contracts for distinction (CFDs) to retail purchasers. For extra info on the order, see our earlier Subject 52.

In accordance with ASIC Session Paper 348 Extension of the CFD product intervention order, the unique product intervention order will expire on 23 Might 2022, and ASIC proposes to increase the order to 1 April 2031. Through the authentic order’s first three months of operation, ASIC acknowledged that it noticed important enhancements in key metrics and indicators of retail shopper detriment from CFD buying and selling.

Session closed on 29 November.

Funds

ASIC publishes steering on new ‘crypto-asset’ AFSL authorisation

On 29 October, ASIC printed steering for product issuers on how they’ll meet their regulatory obligations in relation to crypto-asset change traded merchandise (ETPs) and different funding merchandise. The steering is about out in ASIC Info Sheet 225 Crypto-assets (INFO 225).

ASIC states that accountable entities that intend to carry underlying property that comprise crypto-assets might want to maintain an authorisation in relation to crypto-assets, and that it has launched a brand new ‘crypto-asset’ class within the licensing software for accountable entities.

ASIC additionally flagged that it’s going to replace related kinds and regulatory guides sooner or later.

The steering arises out of session undertaken early this yr by ASIC in June and July (for extra info, see our earlier Subject 55).

 

Superannuation

APRA releases dialogue paper on monetary resilience in superannuation

On 19 November, APRA launched a dialogue paper looking for suggestions from superannuation trustees and different trade stakeholders on the present and rising approaches for RSE licensees to keep up the monetary resilience wanted to guard members’ greatest monetary pursuits.

The Dialogue Paper Strengthening Monetary Resilience in Superannuation states that APRA is looking for to realize additional perception into present and rising approaches to:

  1. the adequacy, goal and administration of economic assets;
  2. the monetary assets obtainable to RSE licensees;
  3. monetary projections in enterprise planning practices; and
  4. RSE licensees’ provisioning for contingencies.

Submissions are due on 11 March 2022.

ASIC consults on updates to aid for superannuation calculators and retirement estimates

On 18 November, ASIC launched Session Paper 351 Superannuation forecasts: Replace to aid and steering (CP 351) to hunt stakeholder suggestions on proposed updates to aid and steering for superannuation forecasting instruments.

In releasing CP 351, ASIC states that CP 351 outlines ASIC’s proposals to:

  1. proceed offering its longstanding aid from private monetary recommendation necessities for individuals who present superannuation calculators and for superannuation trustees who present retirement estimates to their members;
  2. undertake a single framework for a way calculators and retirement estimates could also be offered below ASIC’s aid, which would require trustees to have better consistency between the assumptions used throughout their retirement estimates and superannuation calculators;
  3. set normal assumptions for retirement ages and inflation charges that have to be used because the defaults, to foster consistency throughout the trade;
  4. give better flexibility to trustees to tailor forecasts based mostly on their members’ funding methods.

Submissions are due on 28 January 2022.

Superannuation portfolio holdings disclosure rules registered

On 11 November, the Minister for Superannuation, Monetary Providers and the Digital Financial system, Jane Hume, and the Treasurer, Josh Frydenberg, collectively introduced that superannuation funds will likely be required to first report their superannuation portfolio holdings disclosure by 31 March 2022, with portfolio holdings disclosure to happen each six months thereafter.

On that day, the Companies Modification (Portfolio Holdings Disclosure) Laws 2021 had been registered. In accordance with the Explanatory Assertion, the rules prescribe the style through which info offered below the portfolio holdings disclosure regime have to be organised.

For extra info on the Authorities’s session on publicity draft rules, see our earlier Subject 57.

APRA urges tremendous members to take motion the place their tremendous fund is underperforming

On 10 November, APRA urged superannuation members – particularly these whose MySuper merchandise failed the current efficiency check – to extra actively interact with their tremendous to maximise their retirement futures, provided that APRA information exhibits solely a small proportion of members of the merchandise that failed the check have moved their financial savings elsewhere regardless of receiving letters notifying them that their product was formally underperforming.

APRA updates Superannuation Knowledge Transformation FAQs

On 4 November and 22 October respectively, APRA printed two extra frequency requested questions (FAQ) in relation to Reporting Requirements for Section 1 of the Superannuation Knowledge Transformation.

APRA publishes new FAQs in relation to Your Future, Your Tremendous check and trustee directed merchandise

On 3 November and 27 October respectively, APRA printed new regularly requested questions (FAQ) in relation to the Your Future, Your Tremendous efficiency check. The up to date FAQs relate to APRA’s intentions to publish the 2021-21 efficiency check values for all MySuper merchandise, the benchmark illustration administration charges and bills for use for the 2020-21 check, in addition to the introduction of trustee directed merchandise to the check. You’ll be able to learn the Your Future, Your Tremendous FAQs on APRA’s web site.

Superannuation fund stapling commences

On 1 November, the Minister for Superannuation, Monetary Providers and the Digital Financial system, Jane Hume, and the Treasurer, Josh Frydenberg, collectively introduced the graduation of ‘stapling’ of superannuation funds for workers with current superannuation accounts as part of the Your Future, Your Tremendous reforms. The Minister referred to steering printed by the ATO for employers in relation to stapled tremendous funds.

APRA publishes info paper on Selection superannuation merchandise

On 28 October, APRA printed an info paper setting out its evaluation of the efficiency of Selection superannuation merchandise. Within the info paper, APRA states that the paper will likely be adopted by the publication of a Selection Product Heatmap in late 2021.

APRA states that the Selection Product Heatmap, just like the MySuper Product Heatmap, is meant to offer clear and comparable insights on product efficiency.

ASIC identifies considerations in tremendous fund trustees’ conflicts administration preparations

On 27 October, ASIC introduced that in the middle of endeavor surveillance of funding switching by tremendous fund executives, it has recognized considerations with trustees’ administration of conflicts of curiosity. ASIC states that conduct fell under ASIC’s expectations, and that its key considerations embody:

  1. failure to establish funding switching as a threat;
  2. disparity in board-level engagement;
  3. lack of restrictive measures;
  4. insufficient oversight of funding switching; and
  5. lack of oversight of associated events.

ASIC states that it’s going to proceed to comply with up with trustees about areas for enchancment of their battle administration frameworks.

APRA publishes findings from superannuation thematic evaluations

On 26 October, APRA printed its findings from three thematic evaluations it undertook over the previous 12 months protecting strategic and enterprise planning, fund expenditure and unlisted asset valuation practices in relation to superannuation funds, in an info paper.

APRA defined that superannuation trustees ought to look at how their governance and strategic planning might be improved following the discharge of the findings.

APRA updates FAQ in outcomes assessments

On 25 October, APRA printed new and up to date regularly requested questions (FAQ) in relation to the outcomes evaluation below part 52(9) of the Superannuation Business (Supervision) Act 1993 (Cth).

Authorities introduces superannuation and associated reforms into Parliament

On 20 October, the Minister for Superannuation, Monetary Providers and the Digital Financial system, Jane Hume, and the Treasurer, Josh Frydenberg, collectively introduced the introduction of the Treasury Legal guidelines Modification (Enhancing superannuation outcomes for Australians and serving to Australian companies make investments) Invoice 2021 into Parliament. Learn the draft invoice and Explanatory Memorandum. In accordance with the Ministers, the aim of the invoice is to make plenty of amendments to federal laws in relation to rising flexibility to contribute to superannuation, improve the contributions that could be launched below the First Residence Tremendous Saver Scheme, simplify reporting for SMSFs and small APRA-regulated funds and different issues.

Insurance coverage

ASIC consults on remaking class order on PDS necessities the place a quote for a common insurance coverage product is given

On 15 November, ASIC launched Session Paper 349 Remaking ASIC class order on PDS necessities the place a common insurance coverage quote is given: [CO 11/842] and a draft regulatory information.

ASIC states it proposes to make a brand new instrument that might proceed the aid presently given by [CO 11/842] PDS necessities the place a quote for a common insurance coverage product is given.

APRA releases finalised prudential framework for insurance coverage in superannuation

On 12 November, APRA launched its ultimate revised Prudential Customary SPS 250 Insurance coverage in Superannuation and Prudential Observe Information SPG 250 Insurance coverage in Superannuation. That is accompanied by a response to submissions paper, which notes the important thing revisions following trade consultations in November 2019 and January 2021.

APRA publishes revised FAQs in relation to successor fund insurance coverage

On 21 October, APRA printed an replace to frequency requested questions (FAQ) in relation to the Treasury Legal guidelines Modification (Placing Members’ Pursuits First) Act 2019 (Cth) in relation to insurance coverage elections within the context of successor funds. The revised FAQs can be found on APRA’s web site:  ‘Placing Members’ Pursuits First – FAQs’ and ‘Defending your tremendous bundle – FAQs’.

Monetary product recommendation

ASIC publishes file of recommendation samples and steering

On 5 November, ASIC printed an info sheet on information of recommendation (ROA), in addition to pattern ROAs, to offer readability to monetary advisers and recommendation licensees on their obligations in relation to ROAs. Assessment the info sheet and pattern ROAs.

The steering and samples come up out of ASIC’s session in November 2019 to January 2021 looking for enter on entry to non-public recommendation below ASIC Session Paper 332 Selling entry to inexpensive recommendation for customers. For extra info, see our earlier Subject 48.

FASEA consults on amending the Monetary Planner and Advisers Code of Ethics

On 3 November, FASEA introduced that it consulting on amendments to the Monetary Planners and Advisers Code of Ethics 2019, notably on a proposal to amend the wording of Customary 3 to align the wording of the Customary to its intent as defined within the Monetary Planner and Advisers Code of Ethics 2019 – Information.

You’ll be able to learn the Session Paper on FASEA’s web site.

Session closes on 1 December.

 

Monetary markets

ASX publishes updates in relation to steering word updates, CHESS substitute and extra

On 16 November and 18 October respectively, the ASX printed its Compliance Updates no. 10/21 and no. 09.21. In its updates, the ASX:

  1. introduced that it has printed a brand new frequency requested questions doc in relation to ASX On-line kinds (which it is going to periodically replace);
  2. directed entities’ consideration to the ASX’s discover and steering in relation to disclosing details about JobKeeper funds (for extra info, see our earlier Subject 59);
  3. introduced that it has printed up to date steering notes, being Steerage Word 7 US Entities – Regulation S Choices on ASX, Steerage Word 11 Restricted Securities and Voluntary Escrow, Steerage Word 17 Waivers and In-Precept Recommendation and Steerage Word 23 Quarterly Reporting;
  4. offered additional reminders to entities in relation to the CHESS substitute, together with session on the third tranche of working rule amendments (for extra info, see our earlier Subject 58) and digital CHESS statements and notifications;
  5. introduced that it has printed its response to the session on proposed adjustments to grease and gasoline entity reporting (see additional under);
  6. reminded entities of the 2022 reporting calendar, an upcoming entry audit of all ASX on-line customers, and vacation closures.

ASIC extends transitional aid pending session on securities market integrity guidelines

On 10 November, the ASIC Market Integrity Guidelines (Securities Markets) Class Waiver (Modification) Instrument 2021/926 (Instrument 2021/926) was registered. In accordance with the Explanatory Assertion, the aim of Instrument 2021/926 is to offer additional transitional aid in relation to specified advisers from sure obligations in Half 2.4 of the ASIC Market Integrity Guidelines (Securities Markets) 2017 till 30 November 2023.

In accordance with the Explanatory Assertion, the transition interval is meant to permit ASIC additional time to progress amendments to these obligations, as proposed in ASIC Session Paper 342 Proposed amendments to the ASIC market integrity guidelines and different ASIC-made guidelines (for extra info on the session, see our earlier Subject 55) and to permit to permit ample time for the Minister to contemplate whether or not to consent to the rule amendments.

Oslo Inventory Change added to record of ‘accepted overseas markets’

On 4 November, the ASIC Companies (Modification) Instrument 2021/895 (Instrument 2021/895) was registered. In accordance with the Explanatory Assertion, the aim of Instrument 2021/895 is so as to add the Oslo Inventory Change to the notional definition of an ‘accepted overseas market’ in part 9 of the Companies Act. This definition is related for quite a few ASIC legislative devices.

ASIC publishes steering for market operators in relation to crypto-assets

On 29 October, ASIC printed steering for market operators on how they’ll meet their regulatory obligations in relation to crypto-asset change traded merchandise (ETPs) and different funding merchandise. The steering is about out within the following info papers:

  1. ASIC Info Sheet 225 Crypto-assets (INFO 225); and
  2. ASIC Info Sheet 230 Change traded merchandise: Admission tips.

The steering arises out of session undertaken early this yr by ASIC in June and July (for extra info, see our earlier Subject 55).

For our commentary on the ultimate report of the Choose Committee on Australia as a Know-how and Monetary Centre at it pertains to cryptocurrency and blockchain-related taxation points, see our article, ‘First step ahead for tax and crypto’.

ASX publishes response to session on oil and gasoline entity reporting necessities

On 22 October, the ASX printed its response to submissions it acquired in respect of its session on reporting necessities for oil and gasoline entities. The session was undertaken throughout April and Might this yr. Within the response paper, ASX additionally printed the ultimate adjustments that it intends to make to the ASX Itemizing Guidelines, and states that the ultimate rule adjustments will come into impact on 1 July 2022.

 

Anti-money laundering

AUSTRAC publishes monetary crime information on misuse of cost textual content fields

On 19 November, AUSTRAC printed a brand new monetary crime information designed to help companies perceive, establish and report technology-facilitated abuse via monetary transaction cost textual content fields. The information offers info to reporting entities to assist them establish the place cost textual content fields are being misused, how such misuse might be prevented and reminds entities of their obligation to report suspicious issues to AUSTRAC.

AUSTRAC releases assertion on ‘de-banking’

On 29 October, AUSTRAC printed an announcement in relation to the impact of checking account closures on authentic and lawful monetary providers companies. Within the assertion, AUSTRAC states that such de-banking can improve the dangers of cash laundering and terrorism financing (ML/TF).

AUSTRAC states it considers that, with acceptable techniques and processes in place, banks ought to be capable of handle high-risk prospects, together with these working remittance providers, digital foreign money exchanges, not-for-profit organisations and monetary expertise companies, and that it expects banks and all regulated companies to undertake a case-by-case strategy to managing ML/TF dangers.

 

Banking

APRA publishes new FAQs on operational threat capital for ADIs

On 18 November, APRA printed a brand new set of regularly requested questions (FAQs) on operational threat capital for authorised deposit-taking establishments (ADIs).

The FAQs present info to help regulated entities to interpret Prudential Customary APS 115 Capital Adequacy: Standardised Measurement Method to Operational Danger and Reporting Customary ARS 115.0 Capital Adequacy: Standardised Measurement Method to Operational Danger.

APRA releases ultimate steering on contingent liquidity for locally-incorporated LCR ADIs

On 18 November, APRA launched its ultimate steering on contingent liquidity for locally-incorporated authorised deposit-taking establishments (ADIs) topic to APS 210 Liquidity Protection Ratio (LCR) necessities.

The letter to trade outlines the extent of self-securitised property anticipated to be maintained by locally-incorporated LCR ADIs on an ongoing foundation.

APRA responds to session on zero and adverse rates of interest

On 28 October, APRA printed a letter to the banking trade on its expectations concerning ADI preparedness for the opportunity of zero and adverse rates of interest. The letter responds to submissions acquired throughout APRA’s session on its draft expectations from July to August.

APRA updates banks on revisions to market threat prudential requirements

On 27 October, APRA printed a letter to ADIs setting out an up to date timeline on revisions to eh market threat prudential requirements (being APS 117, APS 116 and APS 180). APRA states that early in 2022, it is going to affirm the timelines for its evaluation.

 

Different monetary providers regulation

Authorities releases evaluation of AFCA

On 24 November, the Authorities tabled the Assessment of the Australian Monetary Complaints Authority (AFCA) within the Commonwealth Parliament. The Authorities response to the evaluation was additionally launched.

The Assessment was carried out by Treasury between February and August 2021 and the Assessment’s report is offered on Treasury’s web site.

In releasing the Assessment and the Authorities’s response, the Minister for Superannuation, Monetary Providers and the Digital Financial system, Jane Hume, acknowledged that the Authorities welcomes the Assessment’s findings that AFCA is working successfully and assembly its statutory necessities and the Authorities helps the advice to take away the legislative requirement for authorised credit score representatives to be members of AFCA.

APRA finds boards ought to have a extra energetic position in cyber resilience

On 23 November, APRA printed its conclusions from its expertise resilience information assortment and impartial evaluation of a pilot set of entities’ compliance with Prudential Customary CPS 234 Info Safety (CPS 234), carried out throughout a pattern of banking, superannuation and insurance coverage entities.

Based mostly on its findings, APRA concluded that boards must play a extra energetic position in:

  1. reviewing and difficult info reported by administration on cyber resilience;
  2. guaranteeing their entities can get well from high-impact cyber-attacks (eg ransomware); and
  3. guaranteeing info safety controls are efficient throughout the provision chain.

APRA states that over the subsequent couple of years, it is going to proceed to roll out the CPS 234 impartial evaluation course of for the remaining entities throughout the banking, superannuation and insurance coverage industries.

Treasury releases publicity draft laws on bettering the expertise neutrality of firms and monetary providers legal guidelines

On 19 November, Treasury launched publicity draft laws to modernise enterprise communications by bettering the expertise neutrality of Treasury portfolio legal guidelines.

Treasury states that the draft Treasury Legal guidelines Modification (Modernising Enterprise Communications) Invoice 2021 and the draft Treasury Legal guidelines Modification (Modernising Enterprise Communications) Laws 2021 will suggest amendments that:

  1. expands the scope of the worldwide regimes that permit paperwork to be signed and despatched electronically within the Companies Modification (Conferences and Paperwork) Invoice 2021;
  2. legislates aid for firms, registered schemes and disclosing entities sending paperwork to ‘misplaced members’ below the Companies Act;
  3. permits notices printed in newspapers to be printed in any accessible and fairly outstanding method throughout Treasury portfolio legal guidelines;
  4. updates cost provisions in Treasury laws to make sure digital funds might be made; and
  5. updates the Nationwide Shopper Credit score Safety Act 2009 and related laws to offer customers and their credit score suppliers better flexibility when updating their particulars and when sending paperwork.

In asserting the draft legal guidelines, the Minister for Superannuation, Monetary Providers and the Digital Financial system, Jane Hume, and Ben Morton, Minister Helping the Prime Minister and Cupboard, collectively introduced that, within the subsequent section of this mission, the Authorities will think about additional reforms to enhance expertise neutrality together with:

  1. speaking with regulators;
  2. exemptions to the Digital Transactions Act 1999; and
  3. product disclosure and recordkeeping necessities.

Submissions shut on 10 December.

The media launch on the Companies Modification (Conferences and Paperwork) Invoice 2021 which was launched in Parliament on 20 October by the Treasurer, Josh Frydenberg, is offered on the Treasurer’s webpage.

ASIC releases price restoration implementation assertion

On 11 November, ASIC printed its 2020-21 Price Restoration Implementation Assertion as required below the trade funding mannequin.

APRA and RBA launch joint assertion on local weather change monetary threat

On 4 November, APRA and the RBA printed a joint assertion on the actions they’re taking to make sure monetary establishments and the Australian monetary system are ready to answer the monetary dangers of local weather change.

Monetary Accountability Regime and Compensation Scheme of Final Resort payments launched

On 28 October, the Minister for Superannuation, Monetary Providers and the Digital Financial system, Jane Hume, and the Treasurer, Josh Frydenberg, collectively introduced the introduction of laws into Parliament to determine the Monetary Accountability Regime and the Compensation Scheme of Final Resort (which implement an extra six suggestions made by the Royal Fee into Misconduct within the Banking, Superannuation and Monetary Providers Business).

For extra info on the Authorities’s session in relation to the Monetary Accountability Regime and Compensation Scheme of Final Resort draft laws, see our earlier Subject 56.

APRA finalises steering on remuneration prudential normal

On 18 October, APRA printed finalised steering on the brand new Prudential Customary CPS 511 Remuneration (CPS 511). In accordance with APRA, CPS 511 comes into impact on 1 January 2023 and is designed to strengthen remuneration practices throughout all APRA-regulated entities. For extra info on the prudential normal, see our earlier Subject 58.

APRA additionally printed non-confidential submissions acquired in the middle of session on the draft prudential apply information, in addition to its response letter. Each the letter and submissions can be found on APRA’s web site.

 

Tax

Authorities consults on remedy of trusts below insolvency legislation

On 15 October, the Assistant Treasurer, Michael Sukkar, introduced that the graduation of a session on clarifying the remedy of trusts below Australian company insolvency legislation.

In accordance with the session paper, obtainable on Treasury’s web site, Australia’s present company insolvency regime doesn’t expressly cowl how firms which construction themselves via a belief, or companies which have a company trustee are to be handled throughout insolvency.

Session closed on 10 December.



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