Australia – Page 5 – Global Investment Law Watch

Australia: “Greenwashing” – Are the ACCC and ASIC Aligned?

Jul 26 2023

By Jim Bulling and Ben Kneebush

‘Greenwashing’ has been a priority for both the Australian Competition and Consumer Commission (ACCC) and the Australian Securities and Investments Commission (ASIC) for some time now.

ASIC’s approach to ‘greenwashing’ first emerged over a year ago with the publication of Information Sheet 271 (considered previously in our post), and was expanded with the release of Report 763 (considered previously in our post).

On 14 July 2023, the ACCC released its long-awaited draft guidance titled Environmental and Sustainability Claims – Draft Guidance for Business. The aim of this was to aid businesses in avoiding ‘greenwashing’ when making environmental or sustainability claims.

Australia: Regulation for ESG Ratings Agencies Gathers Pace

Jul 18 2023

By Jim Bulling and Kai Luck

With increased demand for “ESG friendly” investments (in an ESG investment market on track to exceed US $53 trillion globally by 2025), asset managers, funds management companies, superannuation funds and other investors are actively turning to ESG ratings agencies to guide their decisions.

As it currently stands, there is significant potential for discrepancy in the ratings being produced. This is confusing and potentially misleading for investors and may also divert capital away from its intended direction.

Australia: Mandatory Climate Disclosures Framework Takes Shape With Release of New Consultation Paper and ISSB Standards

Jun 30 2023

By: Jim Bulling and Kai Luck

On 27 June 2023, the Australian Treasury released a further consultation paper (consultation period open until 21 July 2023) on the introduction of a mandatory climate disclosure framework in Australia.

Under a phased-in approach, by 2027-28, all entities required to lodge financial reports will be subject to the disclosure framework. Larger entities fulfilling two of three criteria (consolidated revenue of AUD$500 million or more, consolidated gross assets of AUD$1 billion or more and 500 or more employees) will be required to lodge reports first, from 2024-25 with smaller entities which satisfy two of three criteria (consolidated revenue of AUD$50 million or more, consolidated gross assets of AUD$25 million or more, and 100 or more employees) having an extra two years to comply.

Australia: ASIC Chair Addresses “Greenhushing” Amongst ESG Focus Areas

Jun 28 2023

By Jim Bulling and Grace Hall

The Chair of the Australian Securities and Investments Commission (ASIC), Joe Longo, commented on three key ESG focus areas of the regulator in recent speeches.

In addition to governance, greenwashing and growth in sustainable financing, the Chair discussed the phenomenon of “greenhushing”, where companies decline to make any voluntary climate-related disclosures.

Australia: AFCA Reports on Systemic Issues From Financial Complaints

Jun 27 2023

By Jim Bulling and Grace Hall

The Australian Financial Complaints Authority (AFCA) has published its Systemic Issues Insights Report for the first half of the 2022-2023 financial year.

In the first half of the 2022-2023 financial year AFCA identified the most systemic issues in the banking sector, followed by general insurance, superannuation, investments and advice and then life insurance sectors.

Australia: Regulating AI – Emerging Issues

Jun 16 2023

By Daniel Knight, Cameron Abbott, Rob Pulham, Dadar Ahmadi-Pirshahid

Amid global calls for tailored regulation of artificial intelligence tools, the Australia Federal Government has released a discussion paper on the safe and responsible use of AI. The Government is consulting on what safeguards are needed to ensure Australia has an appropriate regulatory and governance framework.

Australia: Proposed Reforms to the Anti-Money Laundering and Counter-Terrorism Financing Regime

May 29 2023

By Daniel Knight and Grace Hall

The Australian Government has committed to reforming Australia’s AML/CTF regime, with proposed reforms aimed to strengthen and modernise the framework.

In April 2023, the Attorney-General released the first of two consultation papers outlining the proposed reforms to the regime. Subsequently, as part of the 2023-24 Federal Budget, the Government announced that it will provide $14.3 million in funding over the next four years to support policy and legislative reforms to the AML/CTF regime.

Australia: Preparing for the Extension of the Superannuation Performance Test to Trustee-Directed Products

May 18 2023

By Jim Bulling and Grace Hall

The release of draft regulations by the Australian Government and publications by the Australian Prudential Regulation Authority (APRA) provide further guidance to regulated superannuation funds on how annual performance assessments (the performance test) will apply to trustee-directed products.

Australia: ASIC Releases Report on Recent Greenwashing Actions

May 16 2023

By Matthew Watts and Rebecca Mangos

The Australia Securities and Investment Commission (ASIC) has published a report on its regulatory interventions made between 1 July 2022 and 31 March 2023 in relation to greenwashing concerns (which can be accessed here). The report covers ASIC’s issuance of greenwashing infringement notices during the period and its observed increase in representations made by listed companies, managed funds and superannuation funds on environmental, social and governance credentials.

Australia: ASIC Revises its IDR Reporting Framework. Are You Ready?

May 12 2023

By Daniel Knight and Hugo Chow

All holders of an Australian Financial Services License (AFSL) with a retail client authorisation will need to comply with ASIC’s internal dispute resolution (IDR) reporting framework. Summary reports will need to be provided to ASIC on a 6 monthly basis, highlighting the status of each client complaint. Reporting obligations commence from 1 July 2023 (for reporting in January or February 2024). AFSL holders should put systems in place now to ensure all required information is being captured.

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