ASIC has released a consultation paper Product intervention: OTC binary options and CFDs (CP 322) on proposals to use its product intervention power to address significant detriment to retail clients resulting from over-the-counter (OTC) binary options and CFDs. A binary option is an ‘all or nothing’ bet on the outcome of an event. A CFD […]
ASIC is calling for public input on its proposed guidance on the new legal obligation on companies to implement a whistleblower policy. Public companies, large proprietary companies and corporate trustees of registrable superannuation entities must implement a whistleblower policy and make it available to their officers and employees by 1 January 2020. This requirement was introduced […]
The Government has asked the House of Representatives Standing Committee on Economics to inquire into progress made by relevant financial institutions in implementing the recommendations of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry. The inquiry’s remit has also been expanded to include other major relevant financial institutions and leading […]
The Government will introduce legislation to ban the grandfathering of conflicted remuneration paid to financial advisers. Conflicted remuneration is where the payment of a benefit to a financial adviser may incentivise them to recommend to a consumer a financial product that may not be in their best interests. Grandfathered conflicted remuneration can entrench clients in […]
ASIC has released Information Sheet 240 AFS licensing – Requirements for certain applicants to provide further information (INFO 240) to provide guidance to applicants on recent changes to ASIC’s Australian financial services (AFS) licensing assessment procedures. These changes apply to: applicants that are a body corporate; applicants that are Australian Prudential Regulation Authority-regulated bodies; and applicants […]
ASIC has today released a consultation paper proposing to provide licensing relief for foreign financial services providers of funds management services in Australia to professional investors. Consultation Paper 315 Foreign financial services providers: Further consultation (CP 315) sets out our proposal to: Provide funds management relief – foreign providers will be exempt from the requirement to […]
Today ASIC initiated consultation on the proposed administration of its new product intervention power. The product intervention power allows ASIC to intervene and take temporary action where financial and credit products have resulted in or are likely to result in, significant consumer detriment. The regulatory guide sets out the scope of the power, when and […]
ASIC has commenced civil penalty proceedings in the Federal Court against R M Capital Pty Ltd (RM Capital) and its authorised representative, The SMSF Club Pty Ltd (SMSF Club), in relation to accepting conflicted remuneration. ASIC alleges that SMSF Club advised its clients to set up self-managed superannuation funds (SMSFs) then use their SMSFs to […]
Following an ASIC investigation, Citigroup will refund over $3 million to 114 retail customers for losses arising out of structured product investments offered by Citigroup between 2013 and 2017. Citigroup will also write to over 1000 customers remaining in the products to provide them an opportunity to exit early without cost. ASIC investigated Citigroup’s sale […]
Australian financial service (AFS) licensees that offer OTC derivatives to retail investors located in some overseas jurisdictions may be providing unlicensed or unauthorised services in those jurisdictions. Retail OTC derivatives are highly risky. Regulators in many jurisdictions (such as Europe, Japan, North America and China) have restricted or prohibited the provision to retail investors of […]