In this article we consider ASIC’s consultation package in relation to the exercise of its new product intervention powers, including some observations about ASIC’s understanding of and proposed implementation of the new regime.
With a forecast surplus for 2019-20, the first time in over a decade, of $7.1 billion, Josh Frydenberg’s 2019 Budget is a not too subtle election budget. Surplus is forecast into the future with government debt eliminated by 2029-30.
On 4 February, the final report of the Royal Commission into the Misconduct in the Banking, Superannuation and Financial Services Industry was released to the public.
Australian Prudential Regulation Authority (APRA) issued Prudential Standard CPS 234 Information Security (CPS 234) on 7 November 2018. CPS 234 imposes information security requirements on all APRA-regulated entities and will commence on 1 July 2019, providing transition arrangements where information assets are managed by third parties. It is crucial for all APRA-regulated entities to understand the requirements in place for the management of information security.
Funds and financial products
ASIC again warns financial firms to join Australian Financial Complaints Authority
The announcement on Wednesday 17 October 2018 of a Senate inquiry into “credit and financial services targeted at Australians at risk of financial hardship” continues the current forensic examination into the state of financial services in Australia.
On 24 June 2018 ASIC released Mr Darren McShane’s independent review report of the fees and costs regime set out in the Corporations Act 2001, Corporations Regulations 2001, ASIC Class Order [CO 14/1252] and ASIC Regulatory Guide 97 (collectively, the ‘RG 97 fees and costs regime’).
With a modest surplus of $2.2 Billion predicted for 2019-20, and tax cuts totalling $140 Billion, Scott Morrison’s third budget is a strong indication of an imminent election.
Scott Morrison has loosened the purse strings ahead of a likely election in his third budget. This budget announced a series of tax reforms including:
The first part of this series, released on 2 March 2018, focussed on superannuation funds indicating their intention to adopt the Insurance in Superannuation Voluntary Code of Practice (Voluntary Code), and the second part, released on 27 March 2018 focussed on the claims handling process. One further key issue for funds that choose to adopt the Voluntary Code will be managing the transition process.