By Daniel Knight and Simon Kiburg
ASIC have announced the first enforcement action it has taken in relation to the Design and Distribution Obligations (DDO), which were introduced late last year. The enforcement action shows that, as described by ASIC deputy chair Karen Chester, “ASIC’s focus has now shifted to compliance. Industry has had sufficient time to bed down its implementation of the DDO regime.“
Read MoreBy Jim Bulling and Hugo Chow
The Australian Prudential Regulation Authority (APRA) has released its final revisions to Prudential Standard SPS 530 Investment Governance (SPS 530).
The more significant amendments are in relation to valuation governance, proposed guidance for environmental, social and governance (ESG) risk management and some new issues for stress testing programs.
Read MoreBy: Jon-Luc Dupuy and Keri Riemer
On 13 July 2022, the Securities and Exchange Commission (“SEC”) proposed new amendments to Rule 14a-8 under the Securities Exchange Act of 1934 (the “Shareholder Proposal Rule”).
Read MoreBy: Jon-Luc Dupuy and Keri Riemer
Update: On 28 July, 2022, the U.S. Chamber of Commerce, Business Roundtable and the Tennessee Chamber of Commerce & Industry sued the SEC, claiming that it did not follow proper procedures under the Administrative Procedure Act or provide adequate justification for its decision to repeal the exemption conditions described below.
On 13 July 2022, the Securities and Exchange Commission (“SEC”) repealed certain aspects of its 2020 reforms for proxy voting advice businesses (“PVABs”).
Read MoreBy Daniel Knight and Kithmin Ranamukhaarachchi
In the wake of the drawn out cryptocurrency market downturn, increased regulation of the sector seems inevitable. With nearly one million Australians transacting in cryptocurrencies last year, there have been widespread calls to enact additional protections for retail investors.
Read MoreBy: Stacy L. Fuller, Clifford C. Histed, Cheryl L. Isaac, Richard F. Kerr, Keri E. Riemer, and Peter J. Shea
On Thursday, Grayscale Investments, LLC (Grayscale) filed suit against the Securities Exchange Commission (SEC) in the D.C. Circuit asking the court to reconsider the agency’s rejection of listing a spot Bitcoin ETP on the New York Stock Exchange (NYSE). In its appeal, Grayscale argued that the SEC’s ruling regarding its spot Bitcoin ETP was “arbitrary and capricious,” because it disregarded facts about the ETP and erroneously determined that listing the ETP would be in contravention of NYSE’s duties under the Securities Exchange Act of 1934.
Read MoreBy Kane Barnett and Bernard Sia
ASIC has published Information Sheet 272 (INFO 272) and Report 728 (REP 728) on the eve of the corporate collective investment vehicle’s (CCIV) commencement.
With the commencement date for CCIVs being 1 July 2022, today ASIC released 7 regulatory guides relating to the registration and licensing requirements for CCIVs. We outline the key features of CCIVs in our previous update. INFO 272 provides much needed clarity on how both the CCIV itself and its initial sub-funds are to be registered.
Read MoreBy Jim Bulling and Alex Morrison
ASIC has released Information Sheet 271 (INFO 271) to assist responsible entities of managed funds, corporate directors of CCIVs and trustees of registerable superannuation funds (Product Issuers) in avoiding ‘greenwashing’ when offering sustainability-related products (Products). INFO 271 describes greenwashing and provides a comprehensive overview of the current regulatory setting for communications about sustainability–related products.
Read MoreBy Kane Barnett and Bernard Sia
As technology continues to drive change within the financial services industry, Australian courts and regulators have confirmed the need for Australian financial services (AFS) licensees to address the cybersecurity risks. On 5 May 2022, the Australian Federal Court ruled in favour of the Australian Securities and Investments Commission (ASIC), holding that AFS licensee RI Advice Group Pty Ltd (RI Advice) had breached its statutory obligations by failing to have adequate cybersecurity measures in place.
Read MoreBy: Clair Pagnano
In a significant departure from the SEC’s long-standing position on the use of fund names, the SEC is proposing amendments to Rule 35d-1 that would expand the Names Rule to include terms denoting strategies, thereby subjecting funds that use the terms “Growth,” “Value,” and funds that use ESG-related terms in the fund’s name to the rule. It would also prohibit funds from using ESG-related terms in their names if ESG factors are considered to the same extent as other screening factors in the management of the fund (so-called “integration” funds). These and other key aspects of the proposed rule include:
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