ASIC issues information sheet on managing conduct risk during LIBOR transition

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ASIC has published Information Sheet 252: Managing conduct risk during LIBOR transition (INFO 252) on practical guidance that Australian entities can adopt to manage conduct risk during the London Interbank Offered Rate (LIBOR) transition. LIBOR is expected to cease after the end of 2021. Although entities in Australia have made substantial changes to date, additional effort

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01 Dec 2020

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ASIC consults on promoting access to affordable advice for consumers

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ASIC has issued Consultation Paper 332 Promoting access to affordable advice for consumers (CP 332). CP 332 seeks input from industry participants and relevant stakeholders to help ASIC understand: the issues and impediments relating to the supply of good quality affordable personal advice; and the practical steps that can be taken by ASIC and industry to improve

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19 Nov 2020

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ASIC extends COVID-19 relief for certain capital raisings and financial advice

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ASIC is extending the temporary relief for capital raisings and financial advice due to the continuing uncertain impacts of COVID-19. ASIC is also extending the financial advice relief related to the COVID-19 early release of superannuation scheme in light of the extension of the scheme by the Government. The capital raisings relief aims to assist

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25 Sep 2020

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ASIC tells fund managers to be ‘true to label’

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A recent ASIC surveillance has found that fund managers must do more to ensure their products are ‘true to label’ – that the product name aligns with the underlying assets. ASIC undertook a targeted surveillance of 37 managed funds operated by 20 responsible entities that collectively hold approximately $21 billion in assets. This followed ASIC

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25 Sep 2020

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ASIC grants industry-wide relief to help members of frozen funds make hardship withdrawals

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ASIC have announced new relief measures for operators of managed funds to facilitate withdrawals by members facing financial hardship (hardship relief) during the COVID-19 pandemic. The conditional relief is available through a legislative instrument, which applies to all responsible entities (REs) of registered managed investment schemes (schemes) that have become ‘frozen funds’. The relief measures

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28 Aug 2020

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Superannuation trustees compensate members wrongly classified as ‘smokers’

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Superannuation trustees that were classifying new members as ‘smokers’ by default and charging them higher life insurance premiums have ceased this practice, and some trustees have remediated members for the extra premiums paid. Between 2017 to 2020, ASIC engaged with seven superannuation businesses, (comprising nine superannuation trustees) that had been, either at the time or

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10 Aug 2020

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ASIC’s responsible lending appeal dismissed by the Full Federal Court

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On 10 September 2019, ASIC filed an appeal with the Federal Court of Australia against the decision of the Honourable Justice Perram regarding ASIC’s allegations against Westpac Banking Corporation (Westpac) for contraventions of responsible lending provisions of the National Consumer Credit Protection Act 2009 (Cth) (Credit Act). The matter was heard in February 2020 and yesterday

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30 Jun 2020

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ASIC approves temporary COVID-19 changes to the Banking Code

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ASIC has approved a variation of the Banking Code of Practice (Code). The variation, as proposed by the Australian Banking Association (ABA), involves the insertion of a ‘Special Note’ into the Code to allow for special application of specified Code provisions until 1 March 2021. The ABA has proposed the variation due to the extraordinary

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29 Jun 2020

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ASIC publishes new regulatory guidance for mortgage brokers

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ASIC has published regulatory guidance to assist in the application of the new best interests duty for mortgage brokers, which comes into effect in 2021. The new obligations were legislated by the Parliament in response to Recommendation 1.2 of the Financial Services Royal Commission. From 1 January 2021, mortgage brokers will be required to act in

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25 Jun 2020

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Investment funds told to correct advertising and disclosure

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ASIC has put responsible entities (REs) of all managed investment schemes (MISs) ‘on notice’ that they must ensure their investment fund advertising provides clear, balanced and accurate information. This follows ASIC’s risk based surveillance  of advertising material, website disclosure and product disclosure statements from managed funds during the COVID-19 pandemic.  ASIC was concerned to find

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17 Jun 2020

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