The Albanese Government has released a further exposure draft of regulations governing Australia’s Buy Now, Pay Later (BNPL) sector for technical consultation. This marks the next step in bringing BNPL into line with other types of credit, highlighting the Albanese Government’s commitment to place Australia at the forefront of effective BNPL regulation while maintaining robust […]
The Federal Court has ordered Firstmac Limited to pay $8 million in penalties for failing to meet its design and distribution obligations (DDO). In ASIC’s first civil penalty action against a distributor involving DDO breaches, the Court found Firstmac contravened section 994E(3) of the Corporations Act when it failed to take reasonable steps that would […]
Buy now pay later products will be subject to stronger regulation with new laws boosting protection for Australian consumers. The National Credit Code has been extended to buy now pay later contracts, following royal assent of the Treasury Laws Amendment (Responsible Buy Now Pay Later and Other Measures) Act 2024 (the BNPL Act) on 10 December 2024. […]
Legal proceedings launched by ASIC have seen the Australian operator of the Kraken crypto exchange ordered to pay $8 million for unlawfully issuing a credit facility to more than 1100 Australian customers. From October 2021, Bit Trade Pty Ltd, which operated the Kraken exchange, had offered its customers a ‘margin extension’ product without a target […]
The Federal Court has ordered Sasha Hopkins to pay $1.25 million and be disqualified for four years, in proceedings brought by ASIC. The Court also ordered that The A Team Property Group, five of the investment schemes and associated companies be wound up, and that receivers be appointed over the property of the schemes and […]
Treasury released its consultation paper inviting views on how Australia applies the Crypto Asset Reporting Framework . The consultation paper explores the following issues: The policy merits of transposing the OECD model into our domestic tax law (compared to a bespoke policy approach). Potential implementation considerations. The timeline for implementation that would minimise compliance costs […]
ASIC has announced its enforcement priorities for 2025, capturing the key areas where it will direct resources and expertise in 2025. ASIC Deputy Chair Sarah Court said, ‘Our 2025 enforcement priorities reflect the increased risks consumers are facing that are being driven by cost of living pressures. These priorities are about protecting Australians from financial […]
Obtaining your own Australian financial services (AFS) licence or varying an existing AFS licence can be a complex process. In this article, we will discuss some of the key questions that need to be considered before applying for an AFS licence to operate a carbon business. Do I need an AFS licence? Holding your own […]
The Federal Court has found that a ‘pre-existing condition’ term in certain HCF Life Insurance Company Pty Ltd (HCF Life) policies was liable to mislead the public. The term was used in three contracts issued under HCF Life’s ‘Recover’ range of products. ASIC alleged that the term could mislead the public because: it purported to […]
If you engage in credit activities, you will generally be required to have an Australian credit licence and comply with credit laws and licence conditions. Under the current law, most buy now pay later (BNPL) products are not covered by the National Consumer Credit Act (Credit Act) meaning providers are often not required to hold […]