Eddie Dragan

This must be a sick joke. The audit reviews were highly critical of the auditing by the Big Four yet now ASIC is saying those highly critical audit reviews were at risk of regulatory capture by the audit firms so they canned them. What!!!!!!! Has common sense and logical thinking escaped our corporate regulator? This is foolish. If the audit reviews were soft and praiseworthy of the auditors then maybe. But they weren't. Back to 'private' interactions with the auditors and companies by the corporate regulator. Exactly the opposite of what a good corporate regulator should be doing. I'm sure Ronald Mizen must have struggled to keep a straight face when writing this article Who are the commissioners heading up ASIC? Well here they are (and it's a long list), and it's just amazing that they lead the organisation funded to be the corporate regulator. https://lnkd.in/gVhWQmB2 Joe Longo Sarah Court Simone Constant Alan Kirkland Kate O'Rourke Louise Macaulay Warren Day Shelley Denniss Lisa Berwick Zack G. Diana Steicke Greg Yanco The Australian Financial Review Myriam Robin Edmund Tadros Methinks it's all about ASIC reducing the public shaming/criticism of itself for not doing its job.

12

2 Comments

Late last week the AG announced the second consultation for the next stage of reforms to the AML regime, including the long-awaited ‘second-tranche’ expanded set of industries to which the regime will apply. Submissions are due in a month (June 13). This stage in the consultation is set out in 5 papers:  Three that expand the regime to the real estate industry, professional services (eg lawyers and accountants), precious metal and stone dealers; a fourth paper that addresses innovations to payments services and how the AML regime applies to digital currency and the broader remittance sector; lastly a fifth paper that introduces a range of simplification measures to the existing regime. For existing reporting entities, the simplification measures focus on proposals to update and replace the prescriptive customer due diligence requirements with less prescriptive and more outcomes based obligations. Feel free to make contact with myself or our broader regulatory team to discuss. Links to the papers  here: https://lnkd.in/ggJAhKzx

15

ASIC has outlined an expanded program of work to enhance the integrity and quality of financial reporting and auditing in Australia in achieving the broader goal of confident and informed investors. ASIC’s financial reporting and audit surveillance program remains a key part of our work, and covers listed companies, other public interest entities and previously grandfathered large proprietary companies. From 30 June, it will also include superannuation funds. Along with the announcement of our focus areas for 30 June 2024, we have announced a new review of auditors’ compliance with ethical and independence standards. ASIC Commissioner Kate O’Rourke said, ‘The areas announced will be the focus of our proactive financial reporting and audit surveillance program. We expect preparers, directors and auditors to pay particular attention to these focus areas in a collective effort to improve financial reporting and audit quality.’ Read more https://bit.ly/3wEAZDZ #financialreporting #auditing

49

1 Comment

The next Internal Dispute Resolution (IDR) Reporting period is now open. Your January to June 2024 report is due by the 31 August 2024! Most financial firms, which primarily include smaller firms, are now required to submit their IDR data to ASIC. This includes collecting and collating your data and reporting it into ASIC. Sophie Grace can assist you with all your reporting needs, visit our website and contact us! #compliance #regulation #financialservices #asic

10

Open Banking and blockchain regulation are the 2 sides redefining the Overton Window in financial services. On the near side, Open Banking forces legacy banks to relax their grip on consumer data and to share with authorised third parties. A strong Open Banking regime places consumers in the driver's seat to seamlessly move to the least cost/best value financial products in market, and reduces the 'loyalty' taxes and premiums charged when incumbents can stymie consumer agency. On the far side, blockchains force the question of whether the regulatory perimeter around financial services needs to be redrawn. With the technology enabling financial assets to be unbundled from their underlying ledgers and databases, lawmakers must consider how much control for-profit actors should possess over independent, neutral infrastructure networks to transfer value. Developments on either side of the window will dictate the economy's future appetite for financial access and interoperability. Let's choose carefully. Amy-Rose Goodey Blockchain Australia Steve Vallas Blockchain APAC Rehan Mark D'Almeida FinTech Services Australia Nick Kavass #universalledgers #ASAP #digitalplatforms https://lnkd.in/gFcyy4Hh

17

4 Comments

In this online course, we will guide you on how to save smart, unlock tax benefits, and secure a stronger financial retirement! #FinancialFreedom #Superannuation #SmartSaving

1

Importance of Implementing the effective controls!

20

👩‍⚖️ ASIC appeals Finder Earn Decision. My reaction: Here’s a breakdown of what happened so far... There’s these things called “debentures” which are issued to raise funds and function a bit like a debt. “Buy my debenture for $1, I’ll pay you back $1.20.” Because that's a "financial product," debentures require an Australian Financial Services License (AFSL) and a host of compliance obligations and investor protections. Finder offered a product called “Finder Earn” along with other crypto offerings. You'd send $'s to a finder wallet, from where you could buy Bitcoin etc, or separately, use 'Earn.' ASIC took the view that Earn was a debenture, and took Finder to court for offering it non-compliantly. In March, Judge Markovic of the Federal Court of Australia said ASIC had failed to make the case that Earn was a debenture. ASIC has now appealed. I’ve worked in a #crypto firm before, and we sought legal advice on a nearly-identical product - it was even called ‘Earn!’ We were told it was probably a debenture. The key difference, determinative in the first judgement against ASIC, was that Finder were not taking your dollars and then promising to pay you a dollar + % back in return. To get into Earn, you first had to buy a “stablecoin” called TAUD, which is what they'd pay you back in. TAUD is supposed to track dollars 1:1, and was distributed by Finder directly through their digital currency exchange registration. Alone not not hugely risky... but what Finder would do with it was. They’d take the customers' TAUD and invest it in “defi” and other places to try to earn yield exceeding what they'd pay their customer back. This is why I think the Full Bench of the Federal Court may overturn the initial decision now, on appeal... because it clearly should be regulated. The argument is essentially that regulatory arbitrage was successful since debentures require a promise to pay back in the same $ and this was more arms length & essentially two transactions. (Legal Eagles, don’t @ me - I am not a legal writer. If you want to explain a “chose in action," go write the piece you want to read!) Now it's far from certain that ASIC will win on appeal... But if they don't, they'll still win 🤷‍♂️ If the Court can't find Finder Earn was a debenture and is bound by technicality and case law... Then ASIC & Treasury will have the ammo they need to overhaul the law more comprehensively, since this clearly SHOULD be captured. Keep in mind, Finder themselves advertised this by direct comparison to shares, term deposits & saving accounts. Honestly, I and many others see a future where even less 'exotic' crypto products (like vanilla "buy / sell / hold") require an AFSL. Treasury are consulting on this concept now, and a loss for ASIC in this lawsuit - which would be heralded by many in crypto as a "heroic win" - may just pave the way. Follow Luke Raven for more layman's legalese 😂

37

12 Comments

The potential need for aged care can be an emotionally loaded conversation for all members of a family. Read why an 'early' family meeting is so important and download your family action plan. Action Plan: https://bit.ly/47RfldR

1

Vanguard Australia has been ordered to pay a $12.9 million penalty for #greenwashing. The investigation found that "Vanguard misrepresented the #ethical characteristics of the Fund. Approximately 74% of the securities in the Fund by market value were not researched or screened against applicable ESG criteria."  The claims the organisation made were through several mediums: media release, disclosure statements, website claims, a news interview and an event presentation. Vanguard benefited financially from this behaviour but the impact resonates far beyond. ・Investing in a fund you believe aligns with your #values only to find out otherwise can lead to a sense of betrayal. ・this behaviour damages the #reputation of ethical funds overall and can create doubt about the #transparency and #honesty of the financial system's ethical initiatives. ・this behaviour can also prompt calls for stricter #regulations and increases in compliance costs. Somehow and somewhere the decision-making processes have failed them and us too.

41

Ensure resilience against cyber threats with the Australia Essential 8 framework. Learn the essentials in no time. 🌐 Get your free guide in the Partner Portal.👇 #Compliance

1

1 Comment

Yesterday, both CBA and Westpac voiced dissent against the Australian Banking Association's stance that the buffer rate (used by the lenders to determine an applicant's ability to replay their loan) be dropped from its current level of 3% down to 2.5% for first home buyers. The idea behind it is to make lending more accessible and allow more first home buyers into the market, through higher levels of debt. This conservative view may come as a surprise, however the logic is actually really sound. These two banks in particular highlight that their first home buyers are actually one of their riskiest sets of borrowers, with higher delinquency rates than other groups. I personally don't think it would be a smart move to reduce the servicing buffer to 2.5%. This would result in a blanket increase for the borrowing capacity of all potential borrowers and this isn't a good thing - many borrowers are struggling already and they borrowed based off of the higher buffer in the first place. Rather, banks should take a more nuanced approach with policies that target individual situations that merit it. An example would be where a first home buyer is buying a two bedroom apartment and plans to rent out a room. It would be prudent if banks could factor in this rental income (albeit shaded heavily at 50%). Moves like this strikes a good balance between increasing borrowing capacity but managing risk. Image credit: The Australian Financial Review.

109

19 Comments

Looks like the outsourced administration model used by industry funds is not fit for purpose. This has been an issue for many years, and only now are the regulators waking up and taking action. There are many more issues to emerge in this area due to poor governance and conflicts of interest. Given the scale of the industry ($4tn), this is a serious concern.

4

7 Comments

Are you reporting with single-sided relief? Your reporting obligations may be changing! Single-sided relief has a useful reporting exemption for firms captured by the ASIC OTC derivative reporting requirements, however these provisions are changing under ASIC Rewrite. See our latest article to ensure you understand and stay compliant under both the current provisions, and under the upcoming ASIC Rewrite changes. Do you need further assistance with understanding your reporting obligations? Don't hesitate to reach out to us for help. https://lnkd.in/ebB_Bh2p #ASIC #ASICRewrite #TransactionReporting #RegulatoryReporting #RegTech 

14

We have issued our latest episode on open banking. There is a lot going on! We discuss what progress has been made in New Zealand in the absence of a consumer data right (CDR) regulation and where we are in the journey towards a CDR, with MBIE currently consulting on the scope of a designation in the banking (and electricity) sectors at the same time as the Customer and Product Data Bill moves through Select Committee. #openbanking #consumerdataright

7