Details for public hearings on ASIC’s responsible lending guidance announced

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ASIC will hold public hearings in Sydney on the 12th of August and Melbourne on the 19th of August. The hearings are part of the wider public consultation on ASIC’s guidance on the responsible lending obligations. It will allow ASIC to test particular issues raised in submissions. More information about the consultation, including the current Regulatory […]

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ASIC has warned superannuation trustees about influencing employers’s choice of default fund through improper inducements

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ASIC has issued guidance to superannuation trustees, reminding them that using improper inducements to influence employers in their choice of default fund is illegal. The guidance set out in Infosheet 241, draws attention to the recently amended s68A of the Superannuation Industry (Supervision) Act 1993.It also illustrates how s68A applies in common scenarios to ensure that […]

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ASIC update on compensation by institutions for poor financial advice

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Australia’s five largest banking and financial services institutions have paid a total of $119.7 million in compensation as at 30 June 2019 to customers who suffered loss or detriment because of non-compliant advice given by financial advisers. This compensation has been paid under review and remediation programs initiated as a result of the ASIC review […]

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A recent study has upheld the Australian equity market’s record for cleanliness

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A recent review by ASIC found Australian equity markets continue to operate with a high degree of integrity. Report 623 Review of Australian equity market cleanliness: 1 November 2015 to 31 October 2018 examines market cleanliness for the period, with a focus on insider trading and information leaks ahead of material market announcements. It extends our work […]

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ASIC acts against SMSF auditor misconduct

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ASIC has acted to disqualify or add conditions to the registration of a number of auditors of self-managed superannuation funds (SMSFs). The actions arose following ASIC concerns about failures to meet requirements including auditor independence standards, auditing standards, minimum continuing professional development (CPD) hours, lodging annual statements, and fit and proper person criteria.  Most of […]

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ASIC ensures licensees meet their AFCA membership obligations

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After commencing operations on 1 November 2018, the Australian Financial Complaints Authority (AFCA) advised ASIC that 58 financial services licensees and 217 credit licensees, who previously held external dispute membership with one of the previous schemes, had not obtained AFCA membership and may be in breach of their licence conduct obligations. Following ASIC’s intervention with these […]

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ASIC consults on remaking class order on departed former temporary residents’ superannuation

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ASIC has released a consultation paper about whether it should remake a class order that provides conditional relief to superannuation trustees from obligations in the Corporations Act 2001 (Corporations Act) that require trustee to provide an exit statement and notice to departed former temporary resident members. The class order is [CO 09/437] Departed former temporary residents’ superannuation–Disclosure […]

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ASIC provides new guidance for certain AFS licence applications

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ASIC has released Information Sheet 240 AFS licensing – Requirements for certain applicants to provide further information (INFO 240) to provide guidance to applicants on recent changes to ASIC’s Australian financial services (AFS) licensing assessment procedures. These changes apply to: applicants that are a body corporate; applicants that are Australian Prudential Regulation Authority-regulated bodies; and applicants that are […]

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Royal Commission response: Add-on insurance

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Sale of so-called ‘add-on insurances’ has been widely criticised in Australia for some time. Here’s why: High pressure sales methods Poor value products, poorly understood Sometime a consumer is not even able to claim on the product Very high commissions for distributors Difficulty for buyers in making a considered decision Regulatory scrutiny has been intense […]

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Five reasons ASIC will reject your licence application

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ASIC rejects 30% of AFS licence applications and 24% of credit licence applications. In this article, we explain why it rejects applications and give you tips on how to avoid becoming a statistic. In 2017/2018, ASIC approved just 40% of all Australian financial services licence (AFSL) applications and 49% of credit licence applications. Many licence […]

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