“Have you tried turning it off and on again?” – A review of the decision in ASIC V Ri Ad

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On 5 May 2021, the Federal Court handed down a landmark decision in Australian Securities and Investments Commission v RI Advice Group Pty Ltd (2022) FCA 496 by declaring that RI Advice Group Pty Ltd (RI Advice) had breached its obligation to: provide financial services efficiently, honestly, and fairly, and have in place adequate risk

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Are you getting the licence you’re paying for

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Purchasing an Australian financial service licence (AFSL) or an Australian credit licence (ACL) is an exciting opportunity to take your financial service business to the next stage of growth. The process is often much quicker than applying for a licence directly, enabling you to get to market fast. One of the critical steps in purchasing

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Who watches The Watchmen? We do – a review of the ASIC Enforcement Update

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On 28 March 2022 the Australian Securities and Investments Commission (ASIC) released Report 722 ‘ASIC Enforcement Update July to December 2021’ (Report 722). In this article, we: review the key data points in Report 722 and compare them against the previous update – ‘ASIC Enforcement Update January to June 2021’ (Report 699) provide you with

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Financial Services and Credit Panel – with great power comes great responsibility

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ASIC has released a consultation paper[1] on what matters should be heard by the Financial Services and Credit Panel and how it will assess an adviser as a fit and proper person. A new Sheriff in town… Last year, the government passed legislation to give the Financial Services and Credit Panel (FSCP) its own legislative functions and

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Who Would Be An AFSL? – The Court’s Review Of Section 961L

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On 2 August 2021, the Federal Court handed down its decision in the matter of Australian Securities and Investments Commission v RI Advice Group Pty Ltd (No 2) (2021) FCA 877. Background The Australian Securities and Investments Commission (ASIC) commenced proceedings against RI Advice Group Pty Ltd (RI Advice) for an alleged failure to comply with section

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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

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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

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Breach reporting is about to become more onerous

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A new breach reporting regime will commence on 1 October 2021 and it will be more onerous on licensees than ever before. One of the most notable changes is that credit licensees are now required to report significant breaches for the first time. In this blog, we outline the other key changes that you need

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BNPL Code – to B or not to B a member?

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The Australian Finance Industry Association (AFIA) has released a new voluntary Buy Now Pay Later (BNPL) Code (Code) to address criticism that the industry is under-regulated and to enhance consumer protections. The objective of the Code is to encourage a customer centric approach, promote industry standards and drive an uplift in compliance. In doing so,

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Best interests duty – mortgage broker = Join the club

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The new mortgage broker’s best interests duty obligations are wide reaching. They may apply even if you’re providing credit assistance that doesn’t relate to a mortgage. Who does it apply to? The mortgage broker’s best interests duty came into effect on 1 January 2021. It applies to: A licensee providing credit assistance where the licensee

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