Author: lauren-osbich

Royal Commission (Part Five): More Skin in the Game – The Impact of the Regulators

ASIC has been called at various stages “a toothless tiger” and “a pawn of the financial services industry”. And the Interim Report of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry (Interim Report) doesn’t seem to disagree. Which brings up the question – does this mean that the future for ASIC, and the similarly unproductive APRA, is bright? Or does it mean that Commissioner Hayne is likely to recommend that there be at least some sort of reform of the regulators in the final report?

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New Risk Management Standard ISO 31000 – The Changes You Need to Know About

On 15 February 2018, a new risk International Risk Management Standard ISO 31000:2018 was released. ISO 31000:2018 is shorter, clearer and more concise than its predecessor, but is still considered best practice for implementing risk management systems. A new Australia/New Zealand Standard (which adopts ISO 31000:2018 in full) was adopted by Standards Australia on 30 October 2018.

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Royal Commission (Part Three): Consumer Protection vs Credit Risk

The Interim Report of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry (Royal Commission) focused its first public round of hearings on consumer lending. The Royal Commission did this for two reasons. Firstly, because consumer lending affects both consumers and financial service entities equally and secondly, because the kinds of dealings which were being raised in connection with the public hearings all indicated conduct falling below community standards and expectations.

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Royal Commission (Part Two): Conflicts of Interest, Remuneration and Intermediaries

The Interim Report of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry (Royal Commission) has brought both condemnation of, and drawn public attention to, the conduct displayed by financial entities. The reason for this conduct seems to be the pursuit of short-term profit at the expense of basic standards of honesty. But, as we discuss below, conflicted remuneration is not a simple matter of greed. From the executive suite to the front line, staff were measured and rewarded by reference to profit and sales rather than the best interests of their clients.

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Royal Commission (Part One): The Landscape, Issues and Reactions So Far

The Interim Report of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry (Interim Report) has provided a damning assessment of the financial services industry. Commissioner Hayne summed it up with the following comment: “Too often, entities have been treated in ways that would allow them to think that they, not ASIC, not the Parliament, not the courts, will decide when and how the law will be obeyed or the consequences of breach remedied.” The Royal Commission has made it clear that this is untenable and will need to change. But how far, when and what the consequences of the questions posed in the Interim Report will be is what is now uncertain.

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OAIC Quarterly Report Reveals Financial Services Still Vulnerable to Notifiable Data Breaches

The Office of the Australian Information Commissioner (the OAIC) has released its second Quarterly Statistics Report (the Report) on the mandatory notifiable data breaches (NDB) scheme. The finance sector was the third-highest reporter of NDBs with 30% of breaches including financial details and a majority (78%) of those breaches also including contact information.

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Modern Slavery (Part Two): How to Position your Business to Comply

In a global marketplace, businesses risk reputational damage and losing consumer confidence and market share if they are found to have modern slavery practices within their business or supply chains. But there are some simple steps that can help business prepare for the passage of the Australian modern slavery legislation.

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AFSL Responsible Managers – Why Bother with Ongoing Professional Training and Development?

Unlike many other professionals, Responsible Managers (RMs) appointed under an Australian Financial Services Licence (AFSL) are not required by ASIC to complete a minimum number of hours of professional training and development each year. But this doesn’t mean that ongoing professional training and development for RMs is not important. Staying up to date with AFSL requirements and understanding ASIC’s key areas of focus for cultural compliance for this financial year are crucial in the current financial services climate.

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The Devil is in the Detail: Responsible Managers and Culture of an AFS Licence Holder

Evidence provided to the Financial Services Royal Commission raises questions around whether financial services organisations are doing enough to comply with their obligations as AFS licensees, including the obligation to treat customers and investors fairly, honestly and efficiently. Complying with AFSL obligations is an essential part of the financial services industry. And Responsible Managers (RMs) are how licensed financial services businesses demonstrate their competency to provide the financial services authorised by their AFSL.

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