APRA’s letter on the review of the prudential framework for groups

On Monday 24 October 2022, John Lonsdale, the APRA Deputy Chair, issued a letter to all APRA-regulated entities outlining a roadmap for the review of the prudential framework for groups. The letter supports APRA’s recent paper regarding modernising the prudential architecture, which was published on 12 September 2022. The aim of APRA’s review is to […]

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Insights learnt from APRA’s Risk Culture Survey

On 10 November 2022, APRA released the results from their most recent risk culture survey. The survey was provided to 18 authorised deposit-taking institutions (ADIs) between October and December 2021. The 18 ADIs comprised the five largest banks (Major ADIs) and 13 smaller entities, consisting of regional banks, foreign bank subsidiaries/branches, mutual banks, credit unions […]

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APRA releases amendments to capital framework for ADIs

In November 2021, APRA released final prudential standards and guidance that accompany the ADI capital reforms, together with final prudential practice guides in July 2022. In the July 2022 release, APRA consulted on two proposals put forward for consequential amendments to be made to the capital frameworks. The proposals were encouraged to ensure consistency with […]

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APRA to strengthen transfer planning in superannuation

On 10 November 2022, APRA released a discussion paper seeking consultation on strengthening superannuation trustee planning in successor fund transfers (SFTs) (Discussion Paper). The superannuation industry has seen a recent spate of SFTs. By way of example, QSuper and Sunsuper merged in February earlier this year to create the Australian Retirement Trust. LGIAsuper and Energy […]

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ASIC publishes ‘Report 740: Insights from the Reportable Situations Regime: October 2021 to June 2022’

On 27 October 2022, ASIC released its first publication pertaining to information lodged under the reportable situations regime (formerly known as ‘breach reporting’). By way of background, the reportable situations regime commenced on 1 October 2021. The regime’s purpose was to strengthen the obligations of Australian Financial Services (AFS) licensees and to extend this obligation […]

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To retain or to destroy? The interaction between privacy, document retention and destruction policies

The significance of document or data retention, whilst not as fast paced as cryptocurrency or high yielding funds, cannot be understated. Over the past couple of months, we have witnessed some high-profile data breaches that have brought to the forefront a number of questions about how data is retained (as well as destroyed), the obligations, […]

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Cryptocurrencies and ‘earning’ products – ASIC makes managed investment scheme claims

ASIC has commenced civil penalty proceedings in the Federal Court against fintech company Block Earner alleging it provided unlicensed financial services in relation to its crypto-asset based products and that it operated an unregistered managed investment scheme. ASIC is seeking declarations, injunctions, and pecuniary penalties from the Court. It is tricky territory, given crypto assets […]

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The crypto winter and custody – practical advice for shoring up custody arrangements

The digital assets world has been rocked by the liquidity run on FTX the week, the world’s second largest exchange, and the near buyout by Binance, the world’s largest exchange. While there are various reasons being put forward for the issues facing FTX, in a febrile environment part of the focus is on custody of […]

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Misleading & deceptive conduct and cryptocurrencies – ASIC turns up the heat in uncertain territory

Introduction ASIC has commenced civil penalty proceedings in the Federal Court against BPS Financial Pty Ltd (BPS) for allegedly making false, misleading or deceptive representations and engaging in unlicensed conduct in relation to a non-cash payment facility involving a crypto-asset token called Qoin (Qoin). ASIC is seeking declarations, pecuniary penalties, injunctions and adverse publicity orders […]

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Design, distribution and cryptocurrency investment – a sharp position taken by ASIC

Introduction ASIC’s Product Intervention Power (PIP) under its Design & Distribution (DDO) regime is still a relatively new tool in their regulatory tool kit. It allows ASIC to stop, or impose conditions on, the issue and distribution of financial products. We have previously considered how ASIC may use the power in connection with overseas financial […]

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Financial Accountability Regime – Comparing the 2021 and 2022 Bills

The Federal Government introduced the Financial Accountability Regime Bill 2022 (Cth) (FAR 2022) on 8 September 2022. The Bill reintroduces the Financial Accountability Regime Bill 2021 (Cth) (FAR 2021), which lapsed with the calling of the federal election in April 2022. The Financial Accountability Regime (FAR) will be the most consequential change to the financial […]

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The Financial Accountability Regime Bill 2022 Released Yesterday!

Yesterday, the Federal Government introduced the Financial Accountability Regime Bill 2022 (Cth). The Bill reintroduces the Financial Accountability Regime Bill 2021 (Cth), which was introduced by the previous Government but lapsed with the calling of the federal election in April. The new Bill is identical to the previous iteration (with the exception of new commencement […]

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