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 […]
ASIC is calling on product issuers to ensure distribution practices are up to scratch, pointing to flawed consumer questionnaires being the catalyst for some recent interim stop orders. The call to action follows ASIC’s latest design and distribution obligations (DDO) surveillance, which looked at the obligation for product issuers to take reasonable steps to support […]
This is the final article in CNM Legal’s four-part series: A Guide to Public Investment Funds. The series provides an overview of registration, regulation, marketing and tax treatment of public investment funds in Australia. This article will discuss the topic of the tax treatment of public investment funds in Australia, focusing on the types of entities that can be public trusts and the tax treatment of those entities.
ASIC has accepted a voluntary variation of the Australian financial services (AFS) licence of AP Lloyds Pty Ltd, excluding the firm and its corporate authorised representative, Advisory Partner Connect Pty Ltd, from providing advice as an independent expert. The variation means that AP Lloyds and Advisory Partner Connect cannot prepare or provide independent expert reports […]
The Federal Court ruled Bit Trade Pty Ltd, the operator of the Kraken crypto exchange in Australia, failed to comply with design and distribution obligations when offering a margin trading product to Australian customers. Since 5 October 2021, Bit Trade’s “margin extension” product has been available to customers trading on the Kraken exchange without a […]