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 […]
ASIC has commenced proceedings against Oak Capital (Oak Capital Mortgage Fund Ltd and Oak Capital Wholesale Fund Pty Ltd) for allegedly engaging in unconscionable conduct to avoid the National Credit Code. ASIC alleges that from 7 March 2019 to 4 October 2023, Oak Capital made up to 47 loans totalling over $37 million under a […]
ASIC is urging financial services and credit licensees to ensure their governance practices keep pace with their accelerating adoption of artificial intelligence (AI). The call comes as ASIC’s first state of the market review of the use and adoption of AI by 23 licensees found there was potential for governance to lag AI adoption, despite […]
The Administrative Appeals Tribunal (AAT) has affirmed ASIC’s decision to ban a funds management director on the basis that she was not competent and adequately trained to perform her duties. Background The AAT’s decision needs to be considered in a broader context than just a mere banning order. That broader context is the demise of […]