ASIC’s approach to new laws reforming financial services sector

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Six reforms arising out of recommendations from the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry (Royal Commission) and other inquiries will commence in October. The new laws include design and distribution obligations, restrictions on the unsolicited selling of financial products (hawking), a deferred sales model for add-on insurance products, reference... Read more continue reading

ASIC releases guidance and customer information requirements to implement the new add-on insurance deferred sales model

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ASIC has released a new regulatory guide and final customer information requirements as part of its work to implement the new deferred sales model for add-on insurance (RG 275). The deferred sales model introduces a mandatory four-day pause between the sale of a principal product or service and the sale of add-on insurance. The deferred... Read more continue reading

Tips and traps for authorised representative agreements

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If you are appointed to provide financial services on behalf of an Australian financial service licensee, you must enter into an authorised representative (AR) agreement. In this blog we set out some tips and traps to be aware of when negotiating this agreement. Authorisations Of course you should only enter into an AR agreement with... Read more continue reading

Cost of fraud in Asia-Pacific markets is high according to study

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LexisNexis® Risk Solutions has released its 2021 True Cost of Fraud™ APAC Study covering the retail, ecommerce, financial services and lending sectors for Australia, Hong Kong, India and Japan. The study provides a snapshot of fraud trends in the Asia Pacific (APAC) region during the pandemic and spotlights key pain points for firms in relation... Read more continue reading

APIR launches TMD-hosting functionality

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Financial services utility, APIR Systems, has launched new functionality to provide clients with the ability to store Target Market Determinations (TMDs), ahead of the impending Design and Distribution Obligations (DDO) legislation. The DDO legislation, which is being overseen by the Australian Securities and Investments Commission (ASIC), is scheduled to come into effect from 5 October... Read more continue reading

A winter change is coming – fee consent and lack of independence

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Courtesy of the latest round of Royal Commission legislation[1], from 1 July 2021 financial advice firms need to update their Financial Services Guides (FSGs), Ongoing Service Agreements and Financial Disclosure Statements (FDSs). The key changes are: FSGs must include written disclosure that you are not “independent, impartial or unbiased” (assuming you are not independent within the meaning of... Read more continue reading

AMP acknowledges proceedings commenced by ASIC

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AMP acknowledges the civil proceedings brought by ASIC in the Federal Court in relation to alleged breaches concerning the deduction of life insurance premiums and advice service fees from the superannuation accounts of deceased customers. In 2018, AMP identified issues with its processes regarding deceased customer accounts and self-reported to the regulator. The matter was... Read more continue reading

ASIC review finds retail managed funds responded well to COVID-19 challenges in 2020

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An ASIC review of a targeted selection of retail managed funds found that they did not face serious investor liquidity challenges during the height of COVID-19 market disruption, and that their liquidity frameworks were generally adequate. While there was a significant drop in net investor cashflow in the first half of 2020, responsible entities of... Read more continue reading

Controlling commutation of a child pension

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Husband (H) and wife (W) are members of a self-managed superannuation fund, and as part of their estate planning, they want to direct the trustee of the fund to set up child pensions for their eligible children if either of H or W die early. As their children are likely to qualify for the child... Read more continue reading

ASIC Commission welcomes appointment of new Chair and Deputy Chair

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“On behalf of the ASIC Commission and team I’d like to congratulate Joe Longo on his appointment as the next ASIC Chair and Sarah Court as an additional Deputy Chair”, siad ASIC Chair James Shipton. Joe is known to many at the agency from his time as National Director of Enforcement from 1996-2000 and subsequent... Read more continue reading