ASIC encourages submissions to the International Sustainability Standards Board consultation on global baseline climate and sustainability disclosures

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ASIC welcomes the significant progress toward establishing global sustainability reporting standards made by the International Sustainability Standards Board (ISSB). The ISSB has published two draft standards (Exposure Drafts) for consultation and ASIC encourages all relevant stakeholders to make a submission.  Submissions are due by 29 July 2022. ASIC’s Deputy Chair Karen Chester said, ‘The publication

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ASIC warns super trustees to be transparent in their underperformance communications to members

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ASIC has released the findings from its review of superannuation trustees’ communications with their members following the first annual performance test for MySuper products. The test measures the performance of MySuper products against prescribed benchmarks according to a trustee’s own strategic asset allocation. Report 729 Review of trustee communications about the MySuper performance test (REP 729) focuses

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How to avoid ‘greenwashing’ for superannuation and managed funds

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ASIC has released an information sheet to help issuers avoid ‘greenwashing’ when offering or promoting sustainability-related products. The publication will also assist issuers to provide investors with the information they should have to make informed decisions. ASIC considers ‘greenwashing’ as the practice of misrepresenting the extent to which a financial product or investment strategy is

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ASIC releases Information Sheet on warnings and reprimands given to financial advisers

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The requirement for ASIC to give warnings and reprimands to financial advisers in specified circumstances was introduced by the Financial Sector Reform (Hayne Royal Commission Response—Better Advice) Act 2021[1] (Better Advice Act). ASIC has today released Information Sheet 270 Warnings and Reprimands (INFO 270)[2] which explains: what warnings and reprimands are when ASIC will give a warning or

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ASIC announces financial reporting changes for AFS licensees

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ASIC has announced new financial reporting requirements for Australian financial services (AFS) licensees, following changes to the accounting standards. Under the new reporting requirements, AFS licensees’ financial reports must contain disclosures consistent with the financial reports of other for-profit entities, prepared under standards set by the Australian Accounting Standards Board (AASB). ASIC Commissioner Sean Hughes

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Superannuation trustees strengthen governance practices following ASIC surveillance of investment switching

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Trustees in Australia’s superannuation industry have revised their internal policies and procedures after an ASIC surveillance found significant deficiencies in their conflicts management arrangements relating to investment switching. ASIC found a lack of oversight and control measures in relation to investment switching. ASIC expected to find robust systems in place to prevent directors and senior

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ASIC extends relief for retirement estimate

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ASIC has extended the relief for superannuation trustees who give their members retirement estimates on a periodic statement. The existing relief has been extended for a period of nine months. This will allow superannuation trustees to continue to use the relief when sending annual statements to members for the 2021-22 financial year. Class Order [CO

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ASIC releases February 2022 financial adviser exam results

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ASIC has released exam results from the 16th Financial Advisers Exam cycle, held in February 2022. This is the first financial adviser exam cycle that ASIC has administered. The exam was previously administered by the Financial Adviser Standards and Ethics Authority (FASEA). The exam has been continuously conducted by the Australian Council for Educational Research (ACER)

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ASIC scrutinises marketing of managed fund performance and risks

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ASIC has commenced a surveillance into the marketing of managed funds, to identify the use of misleading performance and risk representations in promotional material. ASIC is scrutinising traditional and digital media marketing of funds, including search engine advertising, targeting retail investors and potentially unsophisticated wholesale investors, such as some retirees. ASIC is concerned that, in

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ASIC issues information for social media influencers and licensees

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ASIC has published an information sheet about discussing financial products and services online. It outlines how the law applies to social media influencers, and the licensees who use them. ASIC Commissioner Cathie Armour said, ‘The way investors access information is changing. It is crucial that influencers who discuss financial products and services online comply with

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