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NewsThis section contains our 2007-2008 news updates. For 2000-2006 news updates, please see our Archive. If you'd like to be added to our mailing lists and alerted when we add new publications to our main site, please go to the subscription page in our main site publications area. You may also be interested in keeping up-to-date with the latest developments in the anti-money laundering and counter-terrorist (AML/CTF) reforms and how they affect financial services providers and other industries. Refer to our AML/CTF site for more information. APRA and ASIC release updated guide to good practice in unit pricing APRA and ASIC have today released an updated version of Regulatory Guide 94 Unit pricing - guide to good practice for the life insurance, superannuation and funds management industries. The guide has been amended so that scheme operators can elect not to make payments to exited members for unit pricing errors where the compensation due is less than $20. APRA and ASIC have said they will continue to review aspects of unit pricing practice as a part of ongoing regulatory monitoring and expect that product providers will follow the 'good practices' described in the guide (unless they have a reasonable and well-documented justification for adopting an alternative practice). For further details and to access a copy of the guide, refer to ASIC's website. (For information on the earlier version of the guide, refer to our Breaking News for 3 November 2005.)
Australian authorities sign mutual recognition agreement ASIC and Senator Nick Sherry, Minister for Superannuation and Corporate Law, have today issued separate media releases announcing that a mutual recognition arrangement has been entered into between the US Securities Exchange Commission (SEC), the Australian Government and ASIC through which the US SEC and the Australian authorities (ASIC and the Australian Government) agree to consider providing exemptions to exchanges and securities brokers in one another’s countries. Once implemented, these exemptions could permit:
Under the arrangement, both the SEC and ASIC will retain jurisdiction to pursue violations of their respective anti-fraud laws and regulations. Following the signing of the mutual recognition arrangement, the SEC and Australian authorities will begin considering regulatory exemptions under the arrangement as they are submitted to the two agencies. It is expected that the process of considering the initial applications for exemptions for approval by the authorities could be concluded in early 2009. For further details, refer to the media releases on the ASIC and Treasury websites.
ASIC updates FHSA training requirements for financial product advisers ASIC has today issued an update to RG 146 Licensing: Training of financial product advisers to include new requirements for people who give advice about First Home Saver Accounts. To access a copy of the updated guide, refer to the ASIC website.
ASIC releases annual assessment of the ASX; Federal Government welcomes
ASIC's assessment ASIC has today released a report on each of the licensees of the ASX Group which outlines its assessment of whether the ASX, during the period 1 July 2006 to 30 March 2008, had adequate arrangements in place to supervise its markets (including to manage its conflicts of interest) and its clearing and settlement facilities under sections 792A(c) and 821A(c) of the Corporations Act. ASIC’s assessment concluded that:
ASIC also identified areas for improvement to assist the ASX in ensuring its supervisory arrangements remain adequate. Following discussions with ASIC, the ASX has agreed to take 10 actions which ASIC believes will improve the supervision arrangements for the future, including its arrangements to manage conflicts. These 'agreed actions' are set out in the report. For further details (including to access a copy of ASIC's report), refer to ASIC's website. Following the release of the ASIC report, Senator Nick Sherry, Minister for Superannuation and Corporate Law, issued a media release welcoming ASIC's assessment.
ASIC issues guidance to overseas people wanting to offer financial
services in Australia ASIC has today issued regulatory guide RG 121: Doing financial services business in Australia, which is intended to help foreign financial services providers (FFSPs) understand Australia’s financial services regime by:
For further details (including to access a copy of the guide), refer to ASIC's website.
Prudential regulations on FHSA tax information registered in the FRLI The Australian Prudential Regulation Authority Amendment Regulations 2008
(No 1), which were made on 7 August 2008, were registered today in the FRLI.
The purpose of these amending regulations is to ensure that APRA is able to give
protected information or documents related to First Home Saver Accounts (FHSA)
business to the Commissioner of Taxation.
ASIC issues ongoing licensing relief for trustees of wholesale equity
schemes Further to the interim conditional licensing relief issued by ASIC in class order CO 07/74 Wholesale Equity Schemes: Licensing relief for trustee on 31 May 2008, ASIC has today announced ongoing relief exempting trustees of wholesale equity schemes from having to hold an Australian financial services licence to provide custodial or depository services and dealing services (wholesale equity financial services). In this regard, ASIC has released:
For further information (including to access copies of the class orders and regulatory guide), refer to ASIC's website. (For details of the earlier licensing relief and consultation paper, refer to our Breaking News for 31 May 2008.)
First Home Saver Account enabling regulations registered in the FRLI The Corporations Amendment Regulations No 4 (2008), which were made on 17 July 2008 and prescribe the form and content of First Home Saver Account financial disclosure documents, including PDSs and periodic statements, were registered today in the FRLI. The regulations commence on 19 July 2008. Refer to the COMLAW website for a copy of the regulations and explanatory materials.
ASIC issues latest report on relief applications from financial services
providers (December 2007-March 2008) ASIC has today released a report,
Overview of decisions on relief applications, outlining decisions on
recent applications from the corporate finance, financial services and managed
investment provisions of the Corporations Act 2001.
Government announces first examples of short, simple PDSs for First Home
Saver Accounts Senator Nick Sherry, Minister for Superannuation and Corporate Law, and Lindsay Tanner, Minister for Finance and Deregulation, have today jointly announced the release of two example 4-page, plain English product disclosure statements (PDSs) in anticipation of the commencement of First Home Saver Accounts (FHSAs) on 1 October 2008. The Ministers said the PDSs, which are the first instalment of work from the Financial Services Working Group, aim to make it easier for people who are interested in using FHSAs to understand and compare the products on offer. For more information, including to access copies of the example PDSs, refer to the joint media release.
Government launches the new Financial Ombudsman Service Senator Nick Sherry, Minister for Superannuation and Corporate Law, today launched the Financial Ombudsman Service (FOS). The FOS brings together three separate external dispute resolution schemes: the Banking and Financial Services Ombudsman, the Financial Industry Complaints Service, and the Insurance Ombudsman Service. For further information, refer to the Minister's media release.
ASIC updates guidance on no-action letters For more information (including to access a copy of the updated guide), refer to ASIC's website.
ASIC releases proposals to improve disclosure by unlisted mortgage and
property schemes ASIC has today released the following consultation papers and draft regulatory guides aimed at improving disclosure made to retail investors by unlisted mortgage and unlisted property schemes:
The draft guidance includes proposed advertising standards for these products and ASIC's expectations in relation to compliance plans, compliance committees and compliance plan auditors. Today's consultation papers follow on from ASIC's earlier guidance on unlisted and unrated debentures. ASIC has noted that it will also be producing companion investor guides for both mortgage and unlisted property schemes (similar to what it has been provided in relation to unlisted and unrated debentures) to assist investors in understanding the enhanced disclosure information and to make better informed investment decisions. ASIC is encouraging responsible entities to communicate the enhanced disclosure information to investors in the most effective way possible and by using existing investor communication channels (eg, by the scheme’s website and regular reports). The closing date for comments on the consultation papers and draft regulatory guides is 5 August 2008. ASIC has indicated that the finalised regulatory guides will be released by 2 September. For further information (including to access copies of the consultation papers and draft regulatory guides), refer to the ASIC website. (For information about ASIC's guidance in relation to unlisted and unrated debentures, refer to our news item for 23 April 2008.)
ASIC announces mutual recognition agreement with Hong Kong SFC ASIC has today announced that it has signed a ‘declaration of mutual recognition’ with the Hong Kong Securities and Futures Commission (SFC) to facilitate the sale of retail funds to investors in each other’s market. The declaration is intended to reduce regulatory duplication by allowing most funds registered in Australia for offer to retail investors in Hong Kong while making available to Australian investors similar funds authorised in Hong Kong. To facilitate Australian funds to take advantage of mutual recognition, the SFC has issued a set of practical guidelines for the industry. Similarly, ASIC will issue a class order shortly providing Hong Kong authorised funds with ‘conditional relief’ from registration in Australia and from particular licensing, product disclosure and fund-raising requirements. For further information, refer to the information release issued today by ASIC which is available on the ASIC website.
ASIC supports FPA statement of advice project ASIC has today issued a media release noting its support of the release this week by the Financial Planning Association of a 10-page example of a statement of advice (SOA), written in plain English and tested with consumers. (ASIC has previously published guidance in this area. In August 2005, ASIC published RG 90: Example Statement of Advice (SOA) for a limited financial advice scenario for a new client (August 2005) illustrating its interpretation of clear, concise and effective advice and disclosure in a specific financial advice scenario (ie, a hypothetical financial planning scenario dealing with personal advice about personal insurance, investing in managed funds and basic deposit products). This example SOA was developed in response to the (then) Federal Government's Proposals Paper: Refinements to Financial Services Regulation (2 May 2005), which had identified a need for more guidance on SOAs.) For more information, refer to ASIC's website31 August 200505 and 2 May 2005, respectively.).
New Corporations Amendment Regulations The The regulations relate to the regulation of discretionary mutual funds (DMFs) and direct offshore foreign insurers (DOFIs) and are consequential to the Financial Sector Legislation Amendment (Discretionary Mutual Funds and Direct Offshore Foreign Insurers) Act 2007 (the DMF/DOFI Act). The purpose of the regulations is to extend consumer protection measures to wholesale clients of DMFs and DOFIs by requiring AFSL holders to provide:
The regulations commence on 1 July 2008, to coincide with the commencement of schedule 2 of the DMF/DOFI Act. For further information, refer to COMLAW to access a copy of the regulations and the explanatory statement.
First Home Saver Accounts Bills receive Royal Assent The package of Bills implementing the Government's First Home Saver Accounts
scheme (comprising the First Home Saver Accounts Bill 2008, the Income Tax
(First Home Saver Accounts Misuse Tax) Bill 2008 and First Home Saver Accounts
(Consequential Amendments) Bill 2008) have today received Royal Assent. These
Acts commence on 26 June 2008 (ie, the date after Royal Assent).
IFSA launches new Regulatory Headland Statement - Towards a More Efficient
Regulatory System: 2008 - 2011 IFSA has today released a new Headland Statement: ‘Towards a more efficient regulatory system: 2008-2011’ (which follows on from the release of IFSA’s previous statement in February 2006) in which IFSA makes recommendations focussing on areas of structural weakness that impede the efficiency of financial services in Australia, involving:
IFSA has issued this new Statement for the purpose of generating healthy discussion between industry, regulators and government in order to achieve better outcomes for investors and to improve business efficiencies. For further information, refer to the IFSA website.
Treasury and ASIC release consultation paper on cross border recognition
of financial regulation Federal Treasury and ASIC have today released a joint consultation paper, Cross border recognition: Facilitating access to overseas markets and financial services, which:
The closing date for submissions on the proposals in the joint consultation
paper is 25 July 2008.
ASIC and the NZSC welcome new regime for Trans-Tasman securities offerings
and release protocols Further to the announcement today by the Australian and New Zealand governments of the commencement of the Mutual Recognition of Securities Offerings (MRSO) agreement, ASIC and the New Zealand Securities Commission have today jointly issued RG 190 Offering securities in New Zealand and Australia under mutual recognition. Legislation and regulations were recently introduced in each country by the respective Governments to bring this regime into effect. Under the new regime, issuers can now use one prospectus to offer shares, debentures or managed or collective investment schemes to investors in both Australia and New Zealand, subject to particular requirements. The purpose of RG 190 is to:
For further details (including to access a copy of RG 190), refer to the ASIC website.
ASIC announces the results of its latest audit inspection program ASIC has today released the latest results of its audit inspection program, noting that Australia has a skilled audit profession committed to independence and audit quality. Report 130 Audit inspection program public report 2006-07 (June 2008) summarises the results of ASIC's audit regulation activities from 1 July 2006 to 31 December 2007, which included audit inspections of 19 firms. ASIC says it will also continue to liaise with the US Public Company Accounting Oversight Board and other international audit oversight bodies with the intention of conducting work jointly with them or on their behalf to minimise the regulatory burden on Australian audit firms. For more details (and to obtain a copy of the report), refer to ASIC's website.
Government releases Green Paper on Financial Services and Credit Reform –
Improving, Simplifying and Standardising Financial Services and Credit
Regulation The Government has today released a Green Paper on Financial Services and Credit Reform - Improving, Simplifying and Standardising Financial Services and Credit Regulation. The purpose of the Green Paper Paper is to consult stakeholders about the following range of financial services and credit reform initiatives:
Stakeholders are invited to submit comments on the options presented, or submit their own proposals and the closing date for submissions is 1 July 2008. Comments received in response to the Green Paper will then be considered by the Council of Australian Governments to assist it in further decision making about the regulation of these key financial services. For further details, refer to the Green Paper which is available on the Treasury website.
Treasurer announces new protections for depositors and policyholders The Treasurer has today announced that the Government will introduce legislation to establish a Financial Claims Scheme (FCS). The FCS, which will be administered by APRA, reflects recommendations made by the HIH Royal Commission in 2003 and the global Financial Stability Forum earlier this year. It is intended to assist depositors and policyholders in the event that a financial institution fails, although it will not cover life insurance, superannuation or market-linked investment products or products offered by institutions which are not regulated by APRA. The Government has also accepted recommendations of the Council of Financial Regulators that a number of changes be made to the regulatory framework to allow better management of failing financial institutions, including the capacity to recapitalise a distressed bank, credit union, building society (authorised deposit-taking institutions) or general insurer. For further details, refer to the media release on the Treasurer's website.
Government releases consultation paper on simple superannuation advice The Government has today announced the release of a consultation paper, Simple advice on choices within an existing superannuation account, which has been prepared by the Financial Services Working Group. The Government is seeking feedback on regulatory and other steps that could be taken to improve Australians' access to low-cost financial advice within their superannuation fund. The closing date for submissions is 15 July 2008. For further details, refer to the consultation paper (available on the Treasury website).
New Corporations Amending Regulations to reduce red tape of managed
investment schemes For further information, refer to the media release issued by Senator Nick Sherry, Minister for Superannuation and Corporate Law.
Government releases draft regulations on data collection arrangements and
consumer protection measures for Direct Offshore Foreign Insurers The Government has today released for comment draft regulations which set out the data collection arrangements and consumer protection measures applying in relation to Direct Offshore Foreign Insurers (DOFIs). (These draft regulations follow on from the announcement made on 8 April 2008 by Chris Bowen, the Assistant Treasurer and Minister for Competition Policy and Consumer Affairs, regarding the limited exemption arrangements for DOFIs under the Financial Sector Legislation Amendment (Discretionary Mutual Funds and Direct Offshore Foreign Insurers) Act 2007.) The Government has also confirmed today that the commencement date for collecting data from AFSL holders in relation to business placed with discretionary mutual funds and DOFIs will be 1 October 2008. The closing date for submissions on the draft regulations and explanatory materials is 2 June 2008. For further details and to access copies of the materials, refer to the Treasury website. (Also, for details of Mr Bowen's earlier announcement, see our Breaking News for 8 April 2008.)
APRA extends deadline for foreign insurers APRA has announced today that the deadline for foreign insurers wishing to apply for an authorisation to write business in Australia after 1 July 2008 has been extended from 31 May to 30 June 2008. APRA has confirmed that foreign insurers who submit their application and pay the application fee by 30 June will be allowed to continue to operate in the Australian market for up to six months while their application is processed. For further details (including information on the announcement by the Government relating to authorisation requirements for foreign insurers operating in the Australian market), refer to the APRA website.
ASIC approves new complaints scheme – Financial Ombudsman Service ASIC has today announced its approval of the new Financial Ombudsman Service (FOSS). FOS will represent the merger of the three biggest complaints schemes operating in the financial services industry – the Financial Industry Complaints Service, the Banking and Financial Ombudsman Service and the Insurance Ombudsman Service. FOS will be operational from 1 July 2008. Initially, FOS will continue to operate the rules and procedures of the three existing schemes, with a view to operating under a single set of rules no later than 1 January 2010. ASIC is encouraging financial services licensees who are members of one of the existing schemes to transfer to FOS as soon as practicable. For more information, refer to ASIC's website.
ASIC extends disclosure relief for rights issues ASIC has today issued the following class order relief and regulatory guidance in relation to the extension of disclosure relief to non-traditional rights issue structures:
Further, to complement the relief given under class order CO 08/35, ASIC has also issued class order CO 08/171, Variation of class orders CO 04/671 and CO 05/26, which modifies:
Both class orders were gazetted in the ASIC Gazette and registered in the FRLI on 16 May, which is their date of commencement. The aim of the disclosure exemption is to encourage companies to use pro rata rights issues, rather than placements, so that retail investors can participate. This follows on from the disclosure exemption introduced under the Corporations Legislation Amendment (Simpler Regulatory System) Act 2007, which enables listed entities to conduct rights issues for quoted securities or interests without a prospectus or PDS and the Consultation Paper 91, Non-traditional rights issues, which was issued by ASIC in September 2007 to consider whether to extend that disclosure exemption to accommodate current practices in rights issue structuring. For more information, refer to the ASIC website.
IFSA probe reveals preferred PDS length is 15-25 pages IFSA has today issued a media release regarding research conducted for it by the Wallis Consulting Group, which shows that investors have a clear preference for PDSs that are 15-20 pages long. The results are set out in Report of findings of qualitative research into effective disclosure (stage II), March 2008 and, in summary, indicate that consumers consider the following is essential information in a PDS:
IFSA has said that the research will form the basis of a Guidance Note for IFSA's members.
ASIC announces results of its strategic review ASIC has today
announced that it has completed its strategic review, which was conducted
with the aim of helping ASIC to work out its priorities for the next 3-5 years.
The review was completed within the timetable and in line with the process
announced by Mr D’Aloisio to the Senate Estimates Committee on 30 May 2007. ASIC
also confirmed that the Capital Markets Taskforce and Retail Investor Taskforce
have finished their work and the results have been incorporated in the changes
announced by ASIC today. ASIC launches updated training register ASIC has today launched an updated version of the Training Register, aimed at
improving the way financial services industry participants can search for
information about approved courses and course providers. The changes, which
follow on from the release of the updated version of Regulatory Guide 146
Licensing: Training of financial advisers (RG 146) in November
2007, are intended to ensure that course information is presented in a way that
is easy to understand and helps individuals choose between the different
approved courses. ASIC says it will continue to monitor the Register and make
changes where necessary. For more information (including to access the updated Register), refer to
ASIC's website. (For details of the release of the updated version of RG
146, refer to our Breaking News for 22 November 2007.) ASIC acts to provide retail investors with better disclosure in unlisted
debentures ASIC has today released: ASIC has said that it will continue to monitor the disclosures made by
debenture issuers over the next 12 months and develop further investor education
initiatives. ASIC will also conduct more visits with debenture issuers in
October this year and will provide a further report in April 2009. For further information (including to access copies of the documents released
today), refer to the
ASIC website. (For background information on other announcements made, and
documents released, by ASIC in relation to its 'Three Point Plan' to deal with
unlisted and unrated debentures, refer to our Breaking News for
23 August 2007, 1 November 2007 and
19 December 2007.) APRA and ASIC issue reminder about foreign insurance business As a result of the Government's proposed exemption regime (to be implemented
by regulations which will be released in draft for consultation by the end of
April), some business will still be able to be placed with DOFIs that are not
authorised. The Government has also proposed that where AFSL holders deal with
DOFIs under the limited exemption, they will be required to report that activity
to ASIC through statistical returns. For further details, refer to the
joint release (available from the ASIC and APRA websites). ASIC proposal to facilitate online financial services disclosures ASIC is proposing relief to enable: ASIC is inviting feedback on the proposals in its consultation paper by 28
May 2008. In particular, it wants feedback on: For more details (including to access a copy of the consultation paper),
refer to the
ASIC website. ASIC issues latest report on relief applications from financial services
providers (September-November 2007) ASIC has today released a report,
Overview of decisions on relief applications, outlining decisions on
recent applications from the corporate finance, financial services and managed
investment provisions of the Corporations Act 2001. The report, which covers applications considered by ASIC between 1 September
and 30 November 2007, provides an overview of the circumstances in which ASIC
exercised, or refused to exercise, its discretionary powers to grant relief and
also outlines limited instances where ASIC decided to take a no-action position
in relation to non-compliance with provisions of the Corporations Act. For further details, refer to the ASIC
website. (For details of previous update reports issued by ASIC, refer to
our Breaking News for 23 November 2007, which also contains references to
earlier relief application reports issued by ASIC.) ASIC reminds AFS licensees: compensation requirements commence on 1 July,
and releases updated version of RG 126 ASIC has today: For further details and to obtain a copy of the regulatory guide, refer to
ASIC's website. ASIC releases research findings on the costs of financial services ASIC has today released Report 123: A report on costs of financial
services 2007 on the cost impact of the regulatory framework ASIC
administers. The report, which was commissioned late last year by ASIC and the
Finance Industry Council of Australia and is based on the findings from
interviews conducted by Chant Link & Associates with 64 financial sector
organisations in November and December 2007, is one of ASIC's 'Better
Regulation' initiatives. For further details (including to obtain a copy of the report), refer to
ASIC's website. FPA announces new Practice Standards for financial planners: a commitment
to quality advice The Financial Planning Association (FPA) has today released a set of four
draft Practice Standards for FPA member consultation, which are aimed at
addressing technical competence of financial planners and helping consumers to
understand the process financial planners use to provide advice, and the level
of service they can expect from their financial planner. The draft Standards, which are the first in a series and have been developed by
the FPA’s Professional Conduct Committee with input from across the financial
planning profession and the legal and compliance community, are: The FPA is seeking feedback from its members on the draft Standards by 2 May
2008. It is proposing to introduce the new Practice Standards after July 2008,
with members expected to comply by July 2009. The draft Practice Standards are
available on the FPA website www.fpa.asn.au.
APRA and ASIC release new online reporting system for dual-regulated
institutions
APRA and ASIC have today released a new online breach reporting system for
dual-regulated institutions. This system:
This initiative has been implemented under the Financial Sector Legislation
Amendment (Simplifying Regulation and Review) Act 2007 and, in broad terms,
enables: For more information (including to access the online reporting forms), refer
to the
APRA website. Government announces the beginning of Financial Disclosure Simplification The Government has today announced the opening of the first session of the
Financial Services Working Group, which was established earlier this month to
deliver 'simpler and more readable financial information for consumers'. The Working Group will initially focus on the development of a short form
disclosure document for the First Home Saver Account. A timetable will be
established for other financial products. For further details, refer to the media release issued by Senator Nick Sherry
(Minister for Superannuation and Corporate Law) on the
Treasury website. (For background details on the establishment of the
Financial Services Working Group, refer to our Breaking News for
5 February 2008). Government introduces Bill to reform arrangements for reviewing prudential
decisions The Government has today introduced in the Senate the Financial Sector
Legislation Amendment (Review of Prudential Decisions) Bill 2008. The reforms
proposed under the Bill are intended to ensure that individuals and entities are
able to seek appropriate review of APRA’s decisions while at the same time
enabling APRA to act decisively to address prudential risks. The measures contained in the Bill respond to recommendations of the HIH Royal
Commission and the Banks Taskforce report, among other things, and include: For more information, refer to the Financial Sector Legislation Amendment
(Review of Prudential Decisions) Bill 2008 (and the Explanatory Memorandum to
the Bill) in
COMLAW. FPA launches 'Value of Advice Research' The Financial Planning Association (FPA) has today launched a publication,
Value
of Advice Research. The report was prepared by Rice Warner Actuaries at the
request of the FPA and contains an actuarial examination of case studies to
assess the financial (and non-financial) benefits of obtaining and acting on
financial advice from qualified financial advisers. For further information (including to obtain a copy of the Rice Warner report
and to access the FPA's media release), refer to the FPA's website (at
www.fpa.asn.au). Government announces new Financial Services Working Group to review
complexity in financial services The Government has today announced the formation of a Financial Services
Working Group dedicated to looking at the current key issues associated with
financial services advice and disclosure. The new Working Group: The Government has also said that further product examination will be added
to the work schedule throughout 2008. For further information, refer to the joint
media release issued by Senator Nick Sherry (Minister for Superannuation and
Corporate Law) and Lindsay Tanner (Minister for Finance and Deregulation). Auditor notifications about AFS licensees (updated version of RG 34) ASIC has today released an updated version of Regulatory Guide 34 Auditor's
obligations: reporting to ASIC (RG 34), which provides guidance to help auditors
comply with their obligations to report relevant matters (including
contraventions and suspected contraventions of the Corporations Act by their
audit clients) to ASIC.
RG 34, which previously only provided guidance for auditors of companies and
registered schemes on their reporting obligations under sections 311 and 601HG
of the Corporations Act, has now been updated to include guidance for auditors
of AFS licensees in relation to the requirement to report matters under section
990K of the Act.
For more information (and to access a copy of the updated RG 34), refer to
ASIC's website. ASIC releases its advertising guide for unlisted and unrated debentures ASIC expects advertising by issuers to comply with the guide from late January
2008. For further information (including to access a copy of RG 156), refer to the
ASIC
website.
(For background information on other announcements made, and documents released,
by ASIC in relation to its 'Three Point Plan' to deal with unlisted and unrated
debentures (including Consultation Paper 94), refer to our Breaking News for
23
August 2007 and 1 November 2007.) ASIC releases class order on Singaporean collective investment schemes ASIC has today issued class order CO 07/753 Singaporean collective
investment schemes, which provides operators of collective investment
schemes authorised by the Monetary Authority of Singapore (MAS)
with conditional relief from managed investment scheme registration
requirements, Australian financial services license requirements, and some
financial product disclosure requirements under the Corporations Act. The new class order will enable Singaporean collective investment schemes
authorised in Singapore by MAS to offer investments to retail clients in
Australia. This relief is provided in accordance with ASIC's policy on
recognition of foreign collective investments schemes, set out in Regulatory
Guide 178 Foreign collective investment schemes. For more information and to access a copy of the class order, please refer to
ASIC's website. Update: On 10 December 2007, this class order was updated by class
order CO 07/862 to correct minor inaccurate references to Singapore legislation
in CO 07/753. The new class order was made on 10 December 2007, published in the
ASIC Gazette on 18 December 2007 and registered in the FRLI on 4 January 2008
(which is the commencement date of the new class order). See a copy of
CO 07/862 from COMLAW. FPA releases simplified Statement of Advice for financial planners The Financial Planning Association (FPA) today released a
Simplified Statement Of Advice (SOA), which aims to reduce the
cost of advice for consumers. The Simplified SOA is part of a discussion
document released by the FPA and the FPA is seeking member comments by 17
January 2008. The proposed SOA template covers: For further information, refer to the FPA's website. ASIC sets up retail investor taskforce During a presentation today at the Financial Planners Association Conference
(in Sydney), ASIC Chairman, Tony D'Aloisio, noted that ASIC is establishing a
taskforce to address specific issues affecting retail investors in the financial
services industry. The taskforce will address: Mr D'Aloisio said the outcomes of the taskforce's work will be to set ASIC's
agenda in the retail investor area for at least the next three years. For more details, refer to Mr D'Aloisio's speech,
Regulating financial advice – current opportunities and challenges. ASIC issues latest report on relief applications from financial services
providers (June-August 2007) ASIC has today released a report,
Overview of decisions on relief applications, outlining decisions on
recent applications from the corporate finance, financial services and managed
investment provisions of the Corporations Act 2001. The report, which covers applications considered by ASIC between 1 June and
31 August 2007, provides an overview of the circumstances in which ASIC
exercised, or refused to exercise, its discretionary powers to grant relief and
also outlines limited instances where ASIC decided to take a no-action position
in relation to non-compliance with provisions of the Corporations Act. For further details, refer to the
ASIC website. (For details of previous update reports issued by ASIC, refer
to our Breaking News for 6 September 2007, which also
contains references to earlier relief application reports issued by ASIC.) ASIC updates its policy on training for financial product advisers ASIC has released today an updated version of Regulatory Guide 146:
Licensing: Training of financial product advisers (RG 146),
which sets out the minimum training standards for financial product advisers and
explains how advisers can meet these training standards. The revisions to RG 146 follow a review ASIC carried out in response to the
Corporate and Financial Services Regulation Review – Proposals Paper
(released by the Government in November 2006) and the consultation paper (CP 88,
Reviewing and updating RG 146: Training of financial product advisers)
released by ASIC in July 2007. As a result, ASIC has decided to: ASIC has also started work on changes to improve the functionality of the
ASIC Training Register by: For more information (including to access a copy of the updated policy),
refer to
ASIC's website. (For details on the Corporate and Financial Services
Regulation Review – Proposals Paper, refer to our Breaking News for
16 November 2006. For information about the release of CP
88, refer to our Breaking News for 31 July 2007.) ASIC seeks further comments on competition for market services ASIC has today released a second consultation paper, Consultation Paper 95
Competition for market services – response to CP 86 and further
consultation (CP 95), in relation to competition for market
services (trading in listed securities and market data). This follows on from
the package of documents (which included an earlier consultation paper, CP 86
Competition for market services - trading in listed securities and related data)
released by ASIC in July 2007 in relation to applications lodged by AXE ECN Pty
Ltd (AXE) and Liquidnet Australia Pty Ltd (Liquidnet)
for Australian market licences to operate competing venues for trading in ASX-listed
securities. ASIC has considered the feedback on CP 86 and related documents and now, in
CP 95, sets out detailed proposals for mechanisms to allow competition but
maintain market quality and integrity. Comments on CP 95 must be made by 29 January 2008. ASIC will then finalise
its advice to the Minister (who will ultimately decide whether to approve the
market licence applications from AXE and Liquidnet). For more information (and to access the relevant documents, including ASIC's
'overview' of the new market proposals), refer to the
ASIC website. (For details on the earlier package of documents, see our
Breaking News for 23 July 2007.) |
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