ASIC

Writing in ASFA | The Voice of Super Superfunds, ASIC Commissioner Simone constant explains what our latest Corporate Plan means for Australia's #superannuation industry. 'As custodians of approximately $2.7 trillion in hard-earned savings, superannuation trustees have a responsibility to reward the trust members place in their stewardship,' Simone writes. This financial year, ASIC will continue to focus on member services and act against failures, drive industry progress towards improving #RetirementOutcomes, and act against misconduct resulting in the inappropriate erosion of super. Read the article on the Superfunds website https://lnkd.in/gEbYDraf

Following consultation, specific requirements relating to land used in primary production managed investment schemes will no longer apply from 1 October. We have decided the requirements covered by the ASIC Corporations (Land Holding for Primary Production Schemes) Instrument 2024/15 are no longer necessary, and the instrument will expire on 1 October 2024. Responsible entities remain subject to obligations to act honestly, exercise reasonable care and diligence, act in the best interests of members, and ensure that scheme property is clearly identified, held separately and valued at regular intervals. Read more https://lnkd.in/gTHDfZMq

We have extended our consultation agreement with the Financial Markets Standards Board (FMSB). The agreement promotes global standards for fair and effective wholesale financial #markets, and formalises ASIC’s active interest in the development of global industry standards. The two-year extension will further facilitate FMSB’s consultation with ASIC in the development of draft standards and other publications and provide us with periodic updates on FMSB’s strategy. Read more https://brnw.ch/21wNbU3

We hope you will join us at this year’s ASIC Annual Forum. Check out our updated speaker line-up for the #ASICforum2024, featuring ASIC’s Commissioners as well as business, regulatory and consumer representatives as we consider the financial challenges impacting our diverse nation. Hear from more than 45 speakers, including: 🏢 Productivity Commission Chair Danielle Wood unpacking the theme of ‘Bridging generations: Regulating for all Australians’. 🏦 RBA Governor Michele Bullock on the state of the economy. ⚖️ ASIC Deputy Chair Sarah Court announcing our 2025 #enforcement priorities. Early bird pricing is available until 3 October. Register now https://lnkd.in/gFCqwNzm #event #sydney

🔉 ‘Too often, lenders were putting their focus on process over people.’ – Michael Dorman, ASIC’s Senior Manager of Strategic Surveillance. In the second episode of our new #podcast series – Inside ASIC – hear from Michael, as well as our Commissioner Alan Kirkland and Consumer Action Law Centre’s CEO Steph Tonkin about how lenders have done more to help home loan customers experiencing hardship since the release of ASIC’s landmark report. Each episode of Inside ASIC will dive into a different area of our work. Episode 2 is available now. New episodes weekly – subscribe here https://brnw.ch/21wN85m

The Federal Court today ordered Vanguard Investments Australia to pay a record $12.9 million penalty for #greenwashing – the highest ever Australian penalty for misleading #ESG claims. ASIC Deputy Chair Sarah Court said, ‘Greenwashing is a serious threat to the integrity of the Australian financial system, and remains an enforcement priority for ASIC. Vanguard admitted it misled investors that these funds would be screened to exclude bond issuers with significant business activities in certain industries, including fossil fuels, when this was not always the case.’ These screens were applied to investments in the Vanguard Ethically Conscious Global Aggregate Bond Index Fund. The Court found that approximately 74% of the securities in the fund by market value were not researched or screened against applicable ESG criteria. Supporting market integrity and protecting consumers and investors by deterring greenwashing and #SustainableFinance misconduct is a strategic priority for ASIC. The outcome follows our recent successful greenwashing case against Mercer Super. Read more https://brnw.ch/21wN7VA

Following an ASIC investigation, the Markets Disciplinary Panel has fined Macquarie Bank Limited a record $4.995 million for failing to prevent suspicious orders being placed on the electricity #futures market. This is the highest penalty ever imposed by the MDP. ASIC Chair Joe Longo said, ‘The record penalty imposed by the MDP reflects the serious, prolonged and potential systemic failures by Macquarie to detect and prevent suspected manipulation in the ASX 24 market for energy derivatives. Macquarie is the largest market participant in energy derivatives and given its role as a gatekeeper, it must ensure suspicious orders are not permitted to be placed on our markets. ‘We put Macquarie on notice about suspicious orders placed by its clients on numerous occasions and it repeatedly failed to take timely action to address the conduct of its clients and the gap in its surveillance capability.’ Read more https://lnkd.in/gHTnAeNg #enforcement #markets #derivatives

We are suing south-west Sydney car dealership Lansvale Motor Group and Keo Automotive for allegedly providing unlicensed #credit, in many instances charging roughly double the lawful amount of interest. ASIC alleges Lansvale Motor Group (operated by Diamond Wheels) and Keo Automotive offered car loans with principal, interest and fee payments without ever holding a credit licence or being authorised to engage in credit activities. This allegedly resulted in consumers being denied important protections under the Credit Act. ‘Ensuring consumers are afforded the protections of the credit legislation remains a priority for ASIC,’ Deputy Chair Sarah Court said. ‘This is the first civil proceeding we have taken to address lending practices by car dealerships. Car dealers offering finance should be on notice that ASIC is looking closely at how they are operating.’ We also allege former director Ken Keomanivong was involved in the contraventions as he played a central role in arranging and administering the loans. Read more https://brnw.ch/21wN0kM

ASIC welcomes the new Australian financial market infrastructure laws, which introduce new powers essential to ensuring a stable and efficient Australian financial system. ASIC Commissioner Simone Constant said: ‘The new laws ensure we have a fit-for-purpose regulatory regime for critical financial market infrastructure. The reforms significantly enhance ASIC’s regulatory toolkit for financial market infrastructures, clarify the scope of the Australian licensing regime for overseas markets and CS facilities, and empower us to make rules to promote the fair and effective provision of services by licensed CS facilities. Collectively, these new powers help ASIC ensure the Australian financial system is supported by resilient, efficient, and stable FMIs.’ Read more https://brnw.ch/21wMPza

We are urging large businesses and financial institutions to prepare for mandatory #climate reporting requirements taking effect from 1 January 2025. From that date, many businesses will need to prepare annual #sustainability reports containing mandatory climate-related financial disclosures, following the passage of a major bill through Parliament. The sustainability report is the fourth report required as part of these entities’ annual reporting obligations, alongside the financial report, directors’ report and auditor’s report. ASIC Commissioner Kate O’Rourke has urged entities captured by the rollout to proactively engage with these mandatory climate reporting requirements. Reporting requirements will be phased in over the next three years. To assist reporting entitles through the transition, we have established a dedicated sustainability reporting page on our website with information about how we will administer the new regime. Read more https://lnkd.in/gJ8_wPvb #FinancialReporting