By Mark Bland, Partner, Stephen Putnins, Partner, Matthew Farnsworth, Partner, Geoffrey McCarthy, Special Counsel, Sheridan Handley, Senior Associate, Emma Higgs, Senior Associate, Vijay Adithya, Lawyer, Amiinah Dulull, Lawyer and Sam Morris, Consultant

Key developments

With the Optus data breach, there was a special focus on information security with new regulations to facilitate mitigation and warnings from APRA and AUSTRAC.

The significant unfair contracts amendments are now before Parliament again and should prompt financial services providers to review their contracts.

FAR and the CSLR are progressing again now on a fast track. Given the timeframes since the Royal Commission, regulators may not be patient with those affected who are not prepared for day one.

The decision in ASIC v CBA will be helpful in providing clarification about whether intergroup transfers may be conflicted remuneration, but care should be taken to recognise the particular circumstances of the relationship in relation to the superannuation product.

Last Month

20 September – AMP companies admit liability and fined $14.5 million for fees for no service.

20 September – Technical Working Group established to support Treasury’s YFYS consultation.

26 September- the Treasury Laws Amendment (2022 Measures No. 2) Bill 2022 covering downsizer contributions passed the House of Representatives.

26 September – RBA and the Digital Financial Cooperative Research Centre release Whitepaper on CBDC Research Project (eAUD).

27 September – APRA published an update for APRA-regulated entities in relation to information security.

27 September – The Quarterly Statement by the Council of Financial Regulators was published.

27 September – ASIC published an updated Regulatory Guide 277 Consumer Remediation.

28 September – The Treasury Laws Amendment (More Competition, Better Prices) Bill 2022 was introduced into Parliament. The Unfair Contracts amendments commence 12 months after assent.

28 September – On 28 September 2022, the Senate resolved that the Treasury Laws Amendment (2022 Measures No. 3) Bill 2022 containing additional Covid-19 related Ministerial powers should be referred immediately to the Economics Legislation Committee for inquiry and report by 17 November 2022 but the Bill remains in the House.

28 September – Parliament commences inquiry into the effectiveness of corporate insolvency laws, including macro factors such as the COVID-19 pandemic.

28 September – The RBA’s Payment System Board annual report was published.

29 September – AISC remakes relief for interests in managed investment schemes marketed through business introduction schemes until 1 April 2025.

29 September – ASIC consults on modifications to the employee share schemes regime.

29 September – the Federal Court of Australia delivered its judgement in the case of Australian Securities and Investments Commission v Commonwealth Bank of Australia [2022] FCA 1149 (ASIC v CBA MR).

30 September – ALRC Interim Report 2 published focusing on regulatory design and the hierarchy of primary law provisions, regulations, class orders and standards.

30 September – ASIC updates INFO 170 MySuper product dashboard requirements for superannuation trustees.

30 September – the Superannuation Legislation Amendment (Broadening Contribution Rules) Regulations 2022 were registered.

30 September – ASIC releases 2021/2022 licensing and professional registration activities report.

1 October – The employee share schemes regime (ESS) in Part 7.12 of the Corporations Act takes effect.

5 October – APRA released observations on how super trustees can improve the management of outsourcing arrangements.

5 October – APRA updated the FAQs on the 2022 Superannuation Heatmaps.

6 October – ASIC banned Sydney-based director, Peter Geoffrey Gribble for three years over refusal or failure to pay AFCA determinations.

6 October – RBA Financial Stability Review October 2022 was published.

6 October – APRA released an update for APRA-regulated entities on the Optus data breach.

7 October – The Treasurer’s Investor Roundtable was established.

7 October – AUSTRAC cautioned that the Optus data breach may lead to heighten money laundering, terrorism financing and crime risks for AUSTRAC regulated businesses.

7 October – AUSTRAC updated its website to provide guidance to reporting entities on identifying source of funds and source of wealth.

7 October – AUSTRAC CEO reappointment.

11 October – The Telecommunications Amendment (Disclosure of Information for the Purpose of Cyber Security) Regulations 2022 were registered.

12 October – House of Representatives Standing Committee on Economics held hearings on 12 October 2022 in relation to the annual reports of APRA and ASIC.

12 October – APRA published three new FAQs on Phase 1 of the superannuation data transformation.

12 October – ASIC Commissioner Sean Hughes speech to the 32nd Annual Credit Law Conference was published.

14 October – ASIC published its 2021-22 Annual Report.

14 October – Public Hearing of the Senate Economics Legislation Committee into the CSLR Bills and the FAR.

17 October – ASIC placed interim stop orders on target marked determinations of Holon crypto funds.

17 October – APRA published a letter to RSE licensees on ‘Revocation of superannuation standards’.

18 October – APRA publishes life insurance claims and statistics to 30 June 2022.

Upcoming

20 October – Economics Legislation Committee due to report on the FAR Bill and Financial Sector Reform Bill.

20 October – Senate Economics Legislation Committee due to report on CSLR Bills.

21 October – Written submissions are due for CPS 230 Operational Risk Management.

24 October – Submissions due for the ATO Taxpayers’ Charter review.

25 October – Motion scheduled to be put that the Superannuation Industry (Supervision) Amendment (Annual Members’ Meetings Notices) Regulations 2022 be disallowed.

25 -27 October – Parliamentary Budget sitting for both Houses on 25 October 2022.

27 October – submissions due for CP 364: Modifications to the ESS regime.

28 October – Submissions due for Discussion Paper on ASIC Industry Funding Model Review.