By Jim Bulling and Anabelle Weinberg
The ASIC Annual Forum was held on 3 – 4 November 2022 with a number of significant announcements being made.
Firstly, ASIC has for the first time announced their enforcement priorities for 2023. ASIC now intends to do this on an annual basis.
Read MoreBy Jim Bulling and Anabelle Weinberg
1. ASIC takes its first ‘greenwashing’ action
ASIC has taken its first ‘greenwashing’ action against Tlou Energy Limited (Tlou). Tlou has paid a total of $53,280 to comply with four infringement notices issued by ASIC over concerns about alleged false or misleading sustainability-related statements. Tlou have not admitted guilt.
Read MoreBy Jim Bulling and Hugo Chow
In ASIC’s first annual report regarding the reportable situations regime, it noted that there were over 8000 reports made to ASIC by financial services and credit licensees under the regime from 1 October 2021 to 30 June 2022.
Read MoreBy Kane Barnett
The Australian Government has delivered the 2022-23 Federal Budget. One of the announcements relevant to the investment funds industry was that the Government “has reviewed and will not proceed with … the 2016–17 Budget measure that proposed introducing a new tax and regulatory framework for limited partnership collective investment vehicles”.
Read MoreBy Jim Bulling and Hugo Chow
ASIC’s crackdown on product disclosures continues
To date, ASIC has issued 11 design and distribution obligations stop orders, with the first stop orders being issued in July this year.
The latest interim stop order prevent a fund management firm (the Firm) from offering or distributing three funds (the Funds) to retail investors due to the Firm not having compliant target market determinations (TMDs).
Read MoreBy Jim Bulling and Hugo Chow
ASFI releases its first report on the Australian sustainable finance taxonomy
The Australia Sustainability Finance Institute (ASFI) is working closely with the government and regulators to develop an Australian sustainable finance taxonomy.
The Report outlines the key considerations that will inform the development of an Australian sustainable finance taxonomy that will consist of credible, science-based definitions.
Read MoreBy Jim Bulling and Hugo Chow
ASIC sues Latitude Finance Australia and Harvey Norman Holdings for allegedly misleading interest free advertising
ASIC is suing Latitude Finance Australia (Latitude) and Harvey Norman Holdings Ltd (Harvey Norman) over the promotion of interest-free payment methods.
ASIC alleges that advertisements which included “no deposit”, “interest free” payment options over specified terms for purchases at Harvey Norman were misleading as they did not disclose that consumers could only use these payment options if they applied for and used a Latitude GO Mastercard, and that Harvey Norman misrepresented the actual costs of these payment options as they did not adequately disclose the establishment fees and monthly account fees.
Read MoreBy 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 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.
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