The latest Australian Financial Services Regulatory Update covers a wide range of legal and regulatory developments, financial services litigation, and regulatory enforcement actions. Here are some key highlights:
Financial Reporting and Climate-Related Financial Disclosure:
The government introduced a new regime for mandatory disclosure of climate-related risks and opportunities in Australia, with requirements proposed to commence from 1 January 2025. The Bill empowers the Australian Accounting Standards Board to issue sustainability reporting standards for large Australian businesses and financial institutions.
ASIC’s Focus Areas:
ASIC announced an expanded program to enhance the integrity and quality of financial reporting and auditing in Australia. Areas of focus include asset values, adequacy of provisions, subsequent events, and disclosures.
Financial Accountability Regime:
APRA and ASIC released guidance on the Financial Accountability Regime (“FAR”) to improve risk governance cultures of APRA-regulated entities. The FAR replaces the Banking Executive Accountability Regime and will take effect for various entities from different dates.
Consumer Protection:
ASIC shut down investment scam websites and increased surveillance to protect consumers. ASIC also released a report on lenders falling short in financial hardship support.
Superannuation:
ASIC urged improved oversight of performance of superannuation ‘Choice’ products and announced the publication of data on how super trustees are spending and investing members’ funds.
Enforcement Actions:
SkyCity and AUSTRAC agreed to a $67 million penalty for alleged AML/CTF breaches. ASIC issued infringement notices to Melbourne Securities for greenwashing and ASX for market integrity rule breaches.
These updates reflect the ongoing efforts to strengthen financial regulations, enhance consumer protection, and improve transparency in the financial services industry. Stay informed about these developments to ensure compliance with regulatory requirements and to protect the interests of all stakeholders.